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| Headquarters and Main Branch of the St. Kitts-Nevis-Anguilla National Bank |
BASSETERRE, ST. KITTS, FEBRUARY 9TH 2006 - The St. Kitts-Nevis-Anguilla National Bank is reporting continued robust growth for 2005 and there is good reason to anticipate the future with high expectations of continued growth and profitably.
Managing Director Mr. Edmund Lawrence said the Bank's assets increased by EC$195 million or 15 percent from EC$1.3 billion in 2004 to EC$1.5 billion in 2005 and deposits increased by EC$125 million or 13 percent from EC$984 million in 2004 to EC$1.1 billion in 2005.
"The considerable increase in assets is indicative of the success of the Bank in continuing to acquire and conserve business. The significant growth in deposits during 2005 demonstrates the market penetration of the Bank in an extremely competitive environment by providing consistently high quality service and dependable customer satisfaction," said Lawrence in his annual report to shareholders.
He said that this admirable outturn was achieved in an environment of strong performances by the construction, tourism and services sectors of the national economy, reinforced by the experience and expertise that the Bank has acquired over many years in solving problems an recognising opportunities.
Mr. Lawrence said that in 2005 the Bank maintained its drive to continuously improve its sustainable growth potential, with substantial investment in infrastructure enhancement, and human resource capacity development.
The St. Kitts-Nevis-National Bank says it maintains 56 percent of the deposits in the commercial banking system in the Federation at the end of the 2005 financial year.
Net loans and advances at the end of 2005 was EC$692 million, EC$175 million or 34 percent more than the EC$517 million reached in 2004.
The Bank said it had 50 percent of the loans and advances in the domestic commercial banking system in 2005.
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| Managing Director of the St. Kitts-Nevis-Anguilla National Bank, Mr. Edmund Lawrence. |
The liquid assets of the Bank at the end of the 2005 financial year was EC$637 million, amounting to 57 percent of total deposits and 42 percent of total assets of the Bank.
"Total income earned in 2005 was $111 million, which was EC$23 million or 26 percent higher that the EC$88 million earned in 2004. The increase in 2005 was the result of higher interest income as well as higher non-interest income. Total expenses of EC$70 million in 2005 were EC$6 million or 9 percent more than the EC$64 million incurred in 2004," said the Bank Report.
National Bank said that the increase in total income in 2005 was four times the increase in total expenses in the same year compared with 2004 when total income increased at the same rate as total expenses.
Net operating income before tax in 2005 was EC$41 million, which was EC$17 million or 71 percent higher than the EC$24 million net operating income before tax realised in 2004.
The National Bank also reported that interest income of EC$78 million earned in 2005 was EC$16 million, or 26 percent more than the interest income of EC$62 million earned in 2004 and that in 2005 all categories of interest income showed increases over the comparable amounts in 2004.
The interest earned by Bank in 2005 was EC$78 million and the interest paid by the Bank in the same financial year was EC$50 million, which produced interest income of EC$28 million in 2005.
"By comparison the interest earned in 2004 was EC$62 million and the interest paid in that year was EC$43 million which resulted in the net interest income of EC$19 million in 2004. Thus, net interest income of EC$28 million in 2005 was EC$9 million or 47 percent higher than the net interest income recorded in 2004," said the Report.
According to the Bank, receipts for services provided in 2005 were EC$32 million compared with EC$26 million in 2004. Thus non-interest income in 2005 was EC$6 million or 23 percent more than in 2004.
In 2005, interest expense was EC$50 million compared with EC$7 million or 16 percent more than the interest expense of EC$43 million in 2004. The increase in interest expense resulted mainly from increases in deposits, but also from the finer rates of interest paid on relatively large deposits.
In non-interest area, expense was EC$20 million compared with EC$21 million in 2004. There was a reduction of EC$1 million or 5 percent in non-interest expense in 2005 compared with 2004.
Mr. Lawrence reported that an the end of the 2005 financial year, shareholder's funds were EC$174 million. This amount was EC$17million or 11 percent more than the EC$157 million in 2004.
"The capital adequacy ratio was 48 percent which demonstrates the capacity of the Bank to safeguard customers deposits, and promote the stability and efficiency of the Bank," said Mr. Lawrence, adding: "The relationship between customers deposits with and shareholders investments in the Bank is a measure of the high degree of protection that our depositors enjoy. The confirmed evidence of this protection gives both our depositors and shareholders strong confidence in the safety, soundness and integrity of the Bank."
