ECCB 2021-2022 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2021/2022 37

Financial Results

Net Interest income decreased by $13.9 million (25.6 per cent) to $40.3 million for the year ended 31 March 2022 compared to the previous financial year, mainly due to lower interest income earned on foreign reserve assets. Interest income on foreign investment securities, money market instruments and U.S. Agency Mortgage-Backed Securities decreased by $19.0 million, attributable to the historically low-interest-rate environment. The overall decline in net interest income was tempered by an increase of $5.0 million in interest income earned on Participating Governments’ Securities. Operating expenses for the year ended 31 March 2022 totalled $81.1 million, a decrease of $1.2 million (1.5 per cent) from $82.3 million in the previous year. The reduction in operating expenses was primarily due to decreases of $1.0 million in Administration and General Expenses and $0.9 million in Depreciation Expense moderated by increases of $0.5 million in Salaries and Related Costs and $0.5 million in Currency Expenses. The decrease in Administrative and General Expenses was mainly attributable to a reduction in Special Projects expense as the Bank incurred lower costs associated with the DCash pilot project. Moreover, Salaries and Related Costs increased due to vacant positions filled during the year. The increase in Currency Expenses resulted from expensing of the costs related to currency notes and coins issued during the financial year.

Chart VIII - Operating Expenses (EC$’M)

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EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2021/2022 37