ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

Operating Income for the year ended 31 March 2023 fell by $1.02 million (3.5 per cent) to $28.4 million year-over-year. The decrease in Operating Income was caused by increases of $32.2 million in realised losses on the sale of foreign investment securities and $18.6 million in net losses on U.S. Agency Mortgage-Backed Securities and To-be-announced Securities. The rise in realised losses on the sale of foreign investment securities was due to the disposal of foreign debt

securities as the Asset Managers repositioned the Bank’s portfolio amid the rising interest rates environment. Losses on U.S. Agency Mortgage-Backed Securities increased after the Bank liquidated its MBS holdings due to volatility in the market value of these interest sensitive instruments. The reductions in the sources of revenue mentioned above were partially moderated by an upsurge of $48.2 million in net interest income and $4.0 million in Commission Income.

Chart VI - Operating Revenue ($ Millions)

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