ECCB 2021-2022 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2021/2022 36

Financial Results

STATEMENT OF PROFIT OR LOSS The Bank recorded a net loss of $49.1 million for the year ended 31 March 2022, compared to a net profit of $25.2 million in the previous financial year. The net loss for the year was largely driven by losses on foreign investment securities combined with a decline in interest income earned on foreign reserve assets, as interest rates globally remained at historically low levels over the year.

Operating Income for the financial year ended 31 March 2022 fell by $72.9 million (71.3 per cent) to $29.4 million when compared to the previous financial year. The falloff in operating income was principally due to decreases of $38.4 million in realised losses on the sale of foreign investment securities, $22.2 million in net losses on U.S. Agency Mortgage-Backed Securities and $14.1 million in interest income. The increase in realised loss on the sale of foreign investment securities resulted as the Bank disposed of foreign debt securities as part of investment management amid rising interest rates from historical lows. Losses on U.S. Agency Mortgage-Backed Securities increased on account of realised and unrealised losses as interest rates normalised. The reductions in the aforementioned sources of revenue were partially moderated by an increase of $1.2 million in Commission Income.

Chart VI - Operating Income, Operating Expenses and Net Profit (Loss) (EC$’M)

Chart VII - Income Mix (EC$’M)

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2021/2022 36