ECCB 2017-2018 Annual Report and Statement of Accounts

ECCB ANNUAL REPORT 2017/2018

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Total Equity decreased by $7.2 million (3.26 per cent), mainly due to an increase of $28.1 million (161.24 per cent) in unrealised holding losses on “available for sale” foreign investment securities, consequent on the unfavourable performance of the US bond market over the period under review. The effect of this decline was moderated by an increase of $10.4 million (12.7 percent) in Revaluation Reserve due to the revaluation of the Bank’s properties as at 31 March 2018. Additionally, the General Reserve rose by $9.4 million (8.42 per cent) due to the allocation from net profit in accordance with the ECCB Agreement Act 1983 – Article 6(3). Statement of Profit or Loss The Bank maintained good momentum in the 2017/18 financialyear,deliveringanimprovedfinancialperformance over the previous financial year. As at 31 March 2018, the Bank reported a profit of $10.8million, an increase of $4.4 million (70.3 per cent) when compared with 31 March 2017. The upturn in profit was primarily attributable to an increase in interest income on foreign reserve assets, which was positively impacted by the Federal Reserve hikes in interest rates during the financial year. Operating income for the financial year ended 31 March 2018 rose by $6.5 million (8.4 per cent) to $84.0 million when compared to the previous financial year. The growth in operating income was largely driven by increases in net interest income and commission income of $15.0 million and $1.4 million, respectively. The effects of these increaseswereoffsetbya reductionof $7.1million in realised gains on disposal of foreign securities to the point of an overall realised loss for the current financial year. Also offsetting the decline in operating income was a decrease of $3.3 million in other income, reflected mainly in a reduction in income from banking licence fees and penalties when compared to previous financial year.

Chart 6 - Liabilities and Equity (EC$’000)

Chart 7 - Net Profit/(Loss) (EC$’000)

Chart 8 - Operating Income (EC$’000)