ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

The Bank recorded revenues of $176.1 million for the year ended 31 March 2024, an increase of $147.7 million (520.6 per cent) year over year. This increase was driven by an upsurge of $69.8 million in interest income, coupled with decreases of $44.1 million and $35.2 million in losses on mortgage-backed securities and losses on disposal of foreign investment securities, respectively. The significant boost in interest income was mainly attributable to higher interest rates on foreign reserves resulting from the Federal Reserve’s aggressive monetary policy in response to high inflation in the United States of America. The decrease in losses on disposal of foreign investment securities was due to a shift in strategy, which resulted in a reduction in the sale of foreign investment

securities. Losses on the sale mortgage-backed securities declined, as the Bank offloaded the entire portfolio in the previous financial year. Net interest income increased by $66.7 million to $155.2 million for the year ended 31 March 2024 compared to the previous financial year, mainly on account of higher interest earned on the foreign reserve assets. Interest income on foreign investment securities, and money market instruments and money at call grew by $71.4 million. Interest income of participating governments’ securities and advances increased by $3.1 million. The overall growth in net interest income was offset by a decrease of $4.7 million in interest on mortgage-backed securities and an increase of $3.0 million in interest expense.

CHART VIII - Operating Revenues ($ Millions)

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