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Head Office of National Bank Group of Companies (photo by Erasmus Williams) |
BASSETERRE, ST. KITTS, FEBRUARY 10TH 2005 (CUOPM) The St. Kitts-Nevis-Anguilla National Bank says the indigenous financial institution has had another successful year of operations.
The Banks Chairperson, Mrs. Rublin Audain in the Annual Report for 2004 said total assets grew to over EC$1.3 billion from EC$1.06 billion for the year ended June 30, 2003, maintaining the justly proud position of being a bank with assets of over one billion dollars.
Net income fell slightly to EC$16.7 million, deposits increased to just less than one billion from EC$828 million in 2003 and our loan portfolio grew by EC$100 million, said Audain in the report.
Managing Director, Mr. Edmund Lawrence said the companys performance during the review period reflects management vigilant focus on achieving satisfactory growth in equity, assets, loans, and deposits.
He said shareholder equity increased to EC$157.41 million at June 30,2004 compared with EC$144.9 million in 2003, adding: This represents an 8.7 percent increase and reflects management strategy to continue to deliver increased shareholder wealth.
Mr. Lawrence disclosed that total assets increased 23.6 percent to EC$1.3 billion compared with the prior year figure of EC$1.1 billion and that the higher total assets were attributed mainly to growth in the loans portfolio stimulated by the low interest rate environment.
Loans and advances at 30th June 2004 were EC$517.2 million, an increase of EC$100.4 million or 24.1 percent when compared with EC$416.8 million at 30 June 2003, added Lawrence. He said the Company will seek to grow and diversify the loan portfolio continually.
Total deposits grew 18.9 percent to EC$984.2 million in 2004, compared with EC$828.4 million in 2003. Net interest income fell EC$5.0 million or 20.8 percent to EC$19.2 million in fiscal year 2004, compared with EC$24.2 million achieved in 2003.
The decrease in net interest income in 2004 compared with 2003 was caused by two main factors, namely, maintaining the relatively high rates of interest paid on deposits, and reducing the rates of interest charged on loans and advances.
This action was successful in helping to arrest and reverse the trend of declining investments, output and employment in the domestic economy brought on by a slowdown in the global economy, said Mr. Lawrence, who added that to mitigate the effects of the interest rate pressures on net interest income, management took steps to significantly increase non-interest income.
He said management has since tailored a new interest rate regime that is expected to have a positive impact on the net interest income in the ensuring year.
