National Bank CEO Reports increases in customers’ deposits and private sector loans and advances
Basseterre, St. Kitts (CUOPM) — The St. Kitts-Nevis-Anguilla National Bank is reporting that although total loans and advances fell in 2014 as a result of the restructuring of a portion of the public sector debt, private sector loans and advances increased.
“Private sector loans and advances increased by EC$62.6 million or 24.1% from EC$259.5 million in 2013 to EC$322.1 million in 2014. Additionally, 1,300 more private sector loans were granted 2014 than in 2013. Loans growth occurred across multiple portfolios including commercial loans, mortgages, staff loans and credit cards,” Chief Executive Officer, Ms. Dawn Williams told shareholders in her report published in the Annual Report for the year ended June 2014.
She disclosed that total loans and advances to customers of the St. Kitts-Nevis-Anguilla National Bank in 2014 was EC$683 million, which is EC$494 million or 41.9% lower than total loans and advances to customers of EC$1.2 billion in 2013.
“Customers’ deposits grew by EC$455.6 million or 22.3% to EC$2.5 billion in 2014 when compared with EC$2.1 billion in 2013. Loans to deposits ratio fell from 55.9% in 2013 to 26.6% in 2014, reflecting lower loans and advances but higher deposits balances,” said Ms. Williams.
In the area of liquidity, cash and cash equivalents increase by EC$207.4 million or 37.3% to EC$762.7 million in 2014 from EC$555.3 million in 2013.
“Increase in cash flow indicate that the National Group has significant flexibility to take advantages of a number of investments and other opportunities,” said Ms. Williams.
She noted that financial assets and financial liabilities maturing within one year totaled EC$2.1 million and EC$2.6 million respectively, in 2014.
“This was an improved position on EC$1.7 billion and EC$2.2 billion, respectively in guidelines set out by its Asset/Liability/Management Committee, which monitor liquidity on an ongoing basis to ensure that the national group will be able to meet its obligations as they fall due,” said Ms. Williams.
Shareholders equity increase by EC$24.6 million or 5.3% to EC$485.4 million in 2014 from EC$460.8 million in 2013. The return on equity increases to 5.3% in 2014 from 4.8% in 2013, while other earnings per share grew by 18.8% to EC$0.19 to in 2014.
Based on the Basel Capital Accord, bank regulators recommend minimum requirements for capital adequacy for their member banks as a protection to depositors as well as to promote stability and efficiency in the financial sector.
Ms. Williams reported that under Tier 1 Capital, the Basel Capital Accord recommends a minimum Tier 1 Capital ratio of 4 percent. The National Group recorded a Tier 1 Capital of 48 percent in 2014 and 47 percent evidencing the strength of the National Group.
“Total Capital: the National Group Total Capital Ratio was 54% in 2014 and 50% in 2013 significantly in excess of the 8% minimum required by the Basel Capital Record,” the National Bank CEO said.