ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

Operating expenses for the year ended 31 March 2024 totalled $97.8 million, an increase of $14.3 million (17.1 per cent) from $83.6 million in the previous year. The rise in operating expenses was driven by increases of $8.6 million in administrative and general expenses, $3.1 million in salaries, pensions and other staff benefits and $1.4 million in impairment losses on financial assets. Administrative and general expenses rose due to higher costs for software support and maintenance service contracts and strategic projects and initiatives, such as the DCash Pilot

project and ECCB’s 40 th anniversary activities. The increase in salaries, pensions and other staff benefits was largely due to a rise in net pension costs, which resulted from a one-off past service cost associated with improvements in ECCB’s pensioners’ benefits. Moreover, the increase in impairment losses on financial assets was due to the rise in the loss allowance on receivables. Notwithstanding the increase in operating expenses, the Bank’s cost-to income ratio improved significantly year on year, indicating that revenues earned, primarily from our foreign reserves more than offset the higher operating expenses.

CHART IX - Operating Expenses ($ Millions)

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