St. Kitts – Nevis National Bank Earns EC$81m Profit In 2007

Basseterre, St. Kitts – Nevis
March 05, 2008 (CUOPM)
The indigenous St. Kitts – Nevis – Anguilla National Bank is reporting a net profit of EC$81 million in 2007 compared to EC$68 million in 2006.

Bank Chairman, Mr. Walford Gumbs in the Annual Report for 2007, released at the recent 37th Annual General Meeting, disclosed that total assets increased to EC$1,935,130,000 or 19.9 percent from EC$1,614,256,000 in 2006, while deposits grew from EC$1,141,913,000 in 2006 to EC$1,290,808,000 or 13 percent in 2007.

He said that the Bank’s loan portfolio increased by EC$132,886,000 or 15.7 percent to EC$979, 357,000 from EC$846,471,000 in 2006.

Mr. Gumbs said the achievements in the Bank’s operations during the year are extremely commendable as this performance surpassed budgetary estimates.

He added that during the next year, the Bank is sure to surpass the two billion dollar mark in total assets.

Managing Director Mr. Edmund Lawrence in his report said that loans and advances increased by EC$132.8 million or 15.6 percent in 2007 and Deposits increased by EC$148.8 million or 13 percent in 2007 over 2006.

He said Gross Income of EC$161.2 million in 2007 was EC$6.3 million or 4 percent higher. Interest income after deducting interest expense and loan loss provision was EC$52.8 million in 2007. This amount was EC$14.4 million or 37.7 percent higher than in 2006. Interest expense of EC$54.8 million in 2007 was EC$6.8 million in 2007 was EC$14.9 million or 16.6 percent higher than in 2006.

“Demand for credit by the public sector was stronger than the demand by the private and personal sectors. Public sector demand was mainly for physical, educational and social infrastructural development, expansion and maintenance. Private sector demand was mainly for tourism, light industry, wholesale, retail, land and property development and public transport. Personal sector demand was predominantly for land, housing and private transport,” said Mr. Lawrence.

He noted that in fiscal 2007, non- performing loans and advances were 5 percent of total loans and advances, and doubtful debts were 1 percent of total loans and advances.

“This means that 95 percent of loans and advances was performing as agreed and 99 percent of loans and advances was expected to be fully repaid,” said Mr. Lawrence, who disclosed that although “doubtful debts amounted to EC$10.5 million in 2007, the amount of loan loss reserve in the same year was increased to EC$17 million or approximately 1.7 times the amount of doubtful debts.”

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