Antigua Observer – For the third consecutive year, The Eastern Caribbean Central Bank (ECCB) has recorded a net loss, information contained in the bank’s 2015/16 Annual Report has revealed.
The loss of $10 million, however, is much less than the $18 million and the $12 million loss it recorded in 2014 and 2015 respectively.
“The financial performance of the Bank was more favourable compared to the previous financial year,” ECCB Governor Timothy Antoine noted in his report, published on the bank’s website on Monday.
The governor said the loss was partly due to an increase in the operating expenses of the sub-regional financial institution, based in St Kitts & Nevis.
The other reason the annual report noted was the negative impact on the bank’s foreign reserves “as US interest rates remained at historical lows”.
“The reduction in net loss was primarily attributable to an increase of $4.7 million in net interest income offset by an increase of $3.2 million in operating Continued on page 4 ECCB from page 3 expenses,” the bank said.
Although it’s operating income increased, thanks in part to banking licence fees under the new Banking Act, expenses, including administrative expenses, outweighed the income.
The report said operating income for the financial year increased by $5.4 million to $62.0 million over the previous year.