Eastern Caribbean Central Bank 2024-2025 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2024 - 2025

Financial Results

Operating revenue amounted to $221.6 million, up $45.5 million (25.8 per cent) year-over-year, largely on account of a $51.5 million increase in interest income. This surge was driven by higher yields on the Bank’s foreign reserve assets, reflecting the elevated interest rate environment in the United States, which was shaped by the Federal Reserve’smonetary policy stance in response to inflationary conditions. Net interest income rose by $46.6 million to $201.8 million for the year ended 31 March 2025, mainly on account of higher interest income on the foreign investment securities, which climbed by $68.8million. Additionally, interest income from participating governments’ securities and advances increased by $0.8 million. The growth in net interest income was partially offset by a decrease of $18.0 million in interest on money market instruments and money at call andan increaseof $4.9million in interest expense. Operating expenses for the year ended 31 March 2025 totalled $97.7 million, marking a slight decrease of $0.1 million (0.1 per cent) from $97.8 million in the previous year. The marginal decrease was due to a $10.7 million in impairment recoveries on financial assets, tempered by increases of $5.8 million in salaries, pensions and other staff benefits, and $3.5 million in administrative and general expenses. Impairment losses on financial assets declined primarily due to a modification loss adjustment on financial assets and the reduction of impairment losses on receivables. The increase in salaries, pensions and other staff benefits was due to general salary adjustments and the hiring of new staff during the year. Administrative and general expenses rose mainly due to the derecognition of intangible assets, increased costs for software support and

maintenance service contracts, and expenses related to strategic initiatives.

TheBank’sfinancialperformancefor theyear reflected strong returns on foreign reserves and solid balance sheet growth. The increase in equity and the stability inoperatingexpenses further strengthened theBank’s financial position and operating results. These results reflect the Bank’s execution of key strategic initiatives and sustained progress in advancing its mandate and long-term priorities.

Chart VI - Operating Revenue ($ Millions)

Chart VII - Operating Expenses ($ Millions)

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