Development Bank of Saint Kitts and Nevis reports $6.5m profit

Mr Lenworth Harris, General Manager, Development Bank of Saint Kitts and Nevis

St. Kitts (December 11, 2011) — General Manager of the Development Bank of Saint Kitts and Nevis, Mr Lenworth Harris, is reporting that in the financial year ended December 31, 2009 the bank made $6.5 million in operating profit.

“The Bank had a successful year in 2009 with an operating profit of EC$6,591.010,” said Mr Harris. “In spite of the global financial woes, this figure is significantly higher compared to the $3,505,138 million operating profit realised in the financial year ended December 31, 2008.”

According to the General Manager, the steady increase in profit is a manifestation of not only efficient loan and interest collection, but also the entrepreneurial empowerment of the institution’s clients. He explained that as a Development Bank, its first priority is to ensure that the client base has the entrepreneurial skills to move the country forward.

“The bank at this point in time owns a portfolio in excess of EC$228 million,” observed Mr Harris. “We have contributed significantly to the development of the economy and I think it can be said in terms of impact on individual and small and medium size enterprises in our country, that the Development Bank is probably the most important institution.”

The Development Bank of Saint Kitts and Nevis through its Business Support Unit offers technical assistance to its clients and in that way most of the loans advanced have been active as the clients realised higher returns from their various activities, hence reducing delinquencies considerably.

Mr Harris also observed that timely collection of both interest and principal has been assured and delinquent interest and principal payments have been brought up to date.

“The Bank manages its credit risks by screening its customers,” said Mr Harris. “This involves placing limits on the amount of risk accepted in relation to each customer, or group of borrowers. The risk is monitored on a revolving basis and subject to annual review. The Bank also undertakes supervised credit of larger projects whereby loans are disbursed in phases. A progress report is completed after each phase to ascertain that funds were used as intended and the project is on schedule.”

Bank’s total assets as at December 31, 2009 were $225,907,433. That is an increase over the same period in 2008, which then stood at $221,082,314.

General reserves at December 31, 2009 stood at $8,329.986 which was a marked increase compared to the year 2008, which was recorded at $6,682,233. According to the General Manager, “the general reserve fund was created in accordance with Section 14 of the Development Bank of Saint Kitts and Nevis Act 1981.”

The Bank, which celebrates its 30th anniversary this year, was incorporated in Saint Kitts and Nevis on the 22nd day of May, 1981 under the Development Bank of Saint Kitts and Nevis Act of 1981 amended in 1983 and is wholly owned by the Government of Saint Kitts and Nevis. Its principal activities are the provisions of financial assistance in educational programmes, housing and the development of productive enterprises in the State, and matters incidental.

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