ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

primarily due to unrealised valuation gains on foreign investment securities over the year. An increase of $4.4 million in pension reserve due to remeasurement gains on the Bank’s defined benefit pension plan also contributed to the upsurge in equity. S tatement of P rofit or L oss The Bank delivered a robust performance, with a profit of $80.2 million for the year ended 31 March 2024, representing a significant increase of $134.7 million compared to the loss of $54.5 million reported in the previous financial year. This turnaround was largely driven by considerably higher revenues earned on the Bank’s foreign reserve assets, given the sustained increase in the Federal Reserve’s benchmark interest rate throughout the financial year.

Total liabilities fell by $289.7 million (5.0 per cent) to $5,467.6 million year-over-year, mainly due to a decrease of $557.4 million in commercial banks’ reserve balances. The falloff in commercial banks’ reserve balances was attributed to drawdowns of excess reserves by commercial banks. The decrease in total liabilities was offset by increases of $83.3 million and $79.2 million in currency in circulation and participating governments’ fixed deposits, respectively. Total equity expanded by $136.0 million (75.5 per cent) to $316.2 million from $180.2 million the previous year. The growth in equity was due to an increase of $79.4 million in general reserve following the allocation from the increased profit for the year, and a rise of $51.0 million in investment revaluation reserve,

CHART VI - Composition of Assets ($ Millions)

CHART VII - Operating Results ($ Millions)

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