BASSETERRE, St. Kitts, February 8th, 2012 (CUOPM) -- St. Kitts-Nevis-Anguilla National Bank Limited had a good year in 2010/2011, is anchored to the solid rock of institutional excellence and public confidence and that anchor held fast during the financial crisis in the United States and Europe that followed the Lehman brothers collapse in 2008.
Veteran banker and Managing Director, Sir Edmund Lawrence in his annual report disclosed that assets increased byEC$209.1 million, loans increased by EC$68.8 million and deposits grew by EC$186.9 million.
“Profit after tax for the same year increased by EC$11 million, liquidity improved by EC$111.8 million, and earnings per share increased by 8 cents over 2009/2010,” said Sir Edmund.
He said at the end of financial year 2010/2011, National had assets per capita of EC$49, 338, deposits per capita of EC$33,202, loans per capita of EC$24,147, equity per capita of EC$10,012.
At the end of the financial year under review national had a loans-to-deposits ratio of 72.7% and a loans-to-total assets ratio of 48.9%. Liquidity was 54.6% of deposits and 36.8% of assets.
In 2010/2011 financial year national average operating interest rate margin was 2.84% and its operating costs average about 1.2% of total assets.
“No country or company was immune from the effects of the crisis. However National had the system and the strength to withstand the unprecedented rigours and avoid the dreadful ravages of the worst banking and broader financial crisis in modern times,” said Sir Edmund, pointing out:
“What is urgently needed to cure the pandemic banking anemia and prevent a near-term relapse is clear diagrammatical understanding of the multidimensional causation of financial transactions and activities by, between and among central banks commercial banks, businesses, consumers and governments.”
Sir Edmund noted that using the faculty of foresight to discern the unintended consequences of contemplated actions, “National perceived the three vitals Cs of commercial banking, namely Cash (liquidity or real money to operate with); Capacity (board governance), and Competency (management resourcefulness).”
He said these three conjoint factors are indispensable requirements for successful banking.
“Different weights are assigned to these factors: cash 30%, capacity 33% and competency 37%,” said Sir Edmund.
He said National maintains a laser-like focus on these three strategic and enabling Cs to maximize their combined power for the achievement of efficient and profitable performance.
National, he continued, recognises that its cash stock will not influence the quality of the board Capacity or the efficacy of the management Competency, but that together or separately Capacity and Competency will influence the quantity of the cash stock.
National also recognizes that its inventory (money) does not belong to the owners of the bank but belongs to the customers.
“National understands and accepts the dire implications and consequences of that sobering fact and seeks always to conduct its business and affairs in total conformity with that unchanging, unrelenting and unforgiving fact,” said Sir Edmund.
He said that National is fully aware of the fact also that even if the board has excellent Capacity and makes a good decision but the management has a Competency deficit and does a bad execution of an existential risk.
“Similarly without competent management, an ample Cash stock soon becomes insufficient. In recognition of this immutable reality, National remains steadfast and unyielding in its endeavor to combine effective governance with efficient management,” said Sir Edmund.
He said also that National holds the view that the global financial and economic environment will continue to be unstable and unpredictable into the short to medium term.
“Accordingly National continually strengthens and improves two dynamic leadership strategies that it previously developed and implemented to manage the present and prepare for the future,” said Sir Edmund, who declared that the first strategy is to manage the talents, targets, technologies and trends; the second strategy is to manage resources, relationships, situations and time.
“These strategies are separate but inseparable. By this means, National manages presents risks effectively in order that it does not have to manage future crises after the risk have become realities. National future is sustainable and certain whatever challenges and threats the future may presents,” Sir Edmund told shareholders.
The St. Kitts-Nevis-Anguilla National Bank was incorporated in 1971. Subsidiaries are: The National Bank Trust Company (St. Kitts-Nevis-Anguilla) Limited, incorporated 1972; National Caribbean Insurance Company Limited, incorporated 1973 and the St. Kitts and Nevis Mortgage and Investment Company Limited.
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