Development Bank Earns Record Profit Of EC$4.2 Million

St. Kitts - Nevis Development Bank

St. Kitts – Nevis Development Bank Headquarters
Photo By Erasmus Williams

Basseterre, St. Kitts – Nevis
January 26, 2009 (CUOPM)

The Development Bank of St. Kitts and Nevis is reporting a record profit of EC$4.2 million in 2007. The Bank had projected a profit of EC$3.8 million.

General Manager Mr. Lenworth Harris in the Bank’s Annual Report for 2007 disclosed that interest on loans and deposits increased from EC$20 million to EC$23.3 million, an increase of 15 percent, while interest expense on loans and deposits held steady at EC$14.2 million.

The Bank’s operating income increased from EC$7.7 million to EC$10.6 million or by 37 percent. Total administration expenses increased by 6 percent and net income increased by EC$2.5 million to EC$4.2 million. In 2007, the portfolio of the Development Bank of St. Kitts and Nevis grew by EC$24 million to EC$270 million or 9.75 percent in 2007.

According to the bank, 50 percent of its portfolio went to the agriculture, industry and commercial sector, 24 percent to student loans, 18 percent to mortgage and 8 percent to the personal development fund.

Chairman of the Board, Mr. Elvis Newton said the financial institution has been in the forefront of empowering through provision of student loans, mortgage packages and financing small as well as medium size businesses, those subgroups of the Federation’s population with limited access to financial services.

“Such empowerment opportunities in support of government’s thrust to promote holistic economic and social development has been achieved through a variety of invocative approaches, intended particularly in this era of transformation, following the country’s exit from sugar production, to create employment, promote diversification of agricultural and industrial activities and facilitate further development of small and medium size businesses,” said Mr. Newton.

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