Growth in consumer loans over the past year has resulted in a more than 200 percent increase in Bank of The Bahamas’ (BoB) operating income for its financial year ending June 30, 2022.
Kenrick Brathwaite, BoB’s managing director, revealed in the recently released financials that the bank recorded a net income of $11.8 million, which is a 216.43 percent increase over the same period in 2021 when the bank recorded net income of just $3.7 million.
The bulk of the $8.1 million increase was attributed to the $5 million increase in total operating income combined with lower impairment losses of $4.4 million, which was down by 92.53 percent at the end of the financial year.
“The significant decrease in net impairment losses year to date was primarily attributable to reduced provisions expense on credit facilities and other financial assets, along with significantly higher loan recoveries as the Bank allotted significant resources on its loan collection efforts resulting in improved overall delinquency management. Higher total operating income year to date is driven by higher net interest income and non-interest income,” Brathwaite said in the bank’s management discussion and analysis.
“The increase in interest income was due to the overall growth in consumer loans as a result of our loan campaigns while interest expense decreased due to the shift in customer deposit balances to shorter-term/lower interest rate products. The Bank’s auxiliary revenue streams posted a positive variance as fees and commission income, Card fees and Merchant Services fees all recorded increases during the year due to increased volumes as the economy showed a gradual recovery.”
Pointing to the impact of the COVID-19 pandemic on the overall economy and the bank’s performance, Brathwaite said despite the still lingering effects, the ban’s financial and liquidity positions remain strong.
“Despite the ongoing mutations of the COVID-19 virus, Bank of the Bahamas Limited has continued to persevere as it closes another fiscal year with a stronger financial position and overall performance. The Bank has remained resilient during this pandemic period which has resulted in the achievement of positive results despite facing adversities coupled with the global economic challenges,” he said.
“Our focus continues in providing more sustainable growth opportunities to ensure the Bank’s success over the long term and to build a brand that restores trust, strengthen our products, empowers customers, and promotes responsible banking for years to come. The Bank remains positive about the future and will continue to take strides towards a full recovery.”
At the end of June, BoB had approximately $978.6 million in assets, with loans and advances comprising $368.5 million.