Basseterre, St. Kitts (CUOPM) — Newly appointed Chief Executive Officer (CEO) of the St. Kitts-Nevis-Anguilla National Bank, Ms. Dawn Williams says the financial institution recorded another successful year for the period ending June 2014.
“The operating income of EC$99.5 million in 2014 was EC$29.4 million or 41.9% more than the operating income of EC$70.1 million in 2013. This resulted from an increase in net income and gain on investment securities,” said Williams in the Bank’s annual report published ahead of the 44th Annual General Meeting on December 19th 2014.
Reporting on the Bank’s performance, Ms. Williams disclosed that Net interest income in 2014 was EC$35.2 million which was EC$20.3 million or 136.2% higher than the net interest income of EC$14.9 million in 2013.
“Higher net interest income was due to an EC$15.4 million or 15.9% increase in interest income and an EC$4.9 million or 6% decrease in interest expense. The fall in interest expense resulted from the decision taken during the fiscal year to reduce to costs of refunds while still remaining competitive. Another of the Group’s success stories this year is the lowering of our efficiency ratio from 83.3% to 58.6% before impairment expense and from 83.9% to 81.1% after impairment expense,” she said.
Other income increase by EC$9.4 million or 19.3% to EC$58.0 million when compared with 2013. This increase is due mainly to gains on available-for-sale securities (AFS).
She said Net gains on AFS investment at fair value in 2014 was EC$25.5 million compared with EC$16.2 million in 2013, resulting in an increase of EC$8.3 million or 51.4% in 2014 over 2013.
In 2014, total operating expense increase by EC$21.6 million or 36.9% from EC$58.2 million in 2013.
The increase was primarily driven by impairment losses on equity, originated debts and loans and advances. Nonetheless, other operating expenses decline by EC$1.9 million or 3.3% over the review period.