Bank of The Bahamas (BOB) will require further investment and the government is looking for partners to make that commitment, Deputy Prime Minister and Minister of Finance Peter Turnquest said yesterday, adding that the bank’s management team has done a good job turning it back towards profitability.
He contended that the bank could have posted larger income numbers “albeit for a case or claim against the bank”.
“They would have had a bigger profit,” he said. “We expect that case to be set aside.”
Turnquest, who was speaking to reporters on the sidelines of the Bahamas Institute of Chartered Accountants’ Accountants Month seminar, stressed that the government is pleased with the progress being made at BOB.
BOB continues to show positive growth and financial stability after recording a net income of $500,000 in its first quarter ending September 30, 2019.
Senior Managing Director Kenrick Brathwaite said in his overview of the bank’s first quarter financial performance that it continues to work toward sustainable profitability after five consecutive years of losses.
The bank made the positive turn in 2018 and continued the trend into 2019.
“After five years of consecutive net losses, the bank returned to profitability during its fiscal year 2018. This continued in fiscal year 2019 and during this current fiscal year 2020, the bank recorded net income of $0.5 million for the first quarter ended September 30, 2019,” said Brathwaite.
“Our focus remains providing more sustainable growth opportunities to ensure the bank’s success over the long term and to build a brand that restores trust, empowers customers and promotes responsible banking.”
BOB continues to collect interest payments from Bahamas Resolve Limited, which holds a $167.7 million promissory note for toxic loans taken off of Bank of The Bahamas’ books.
“The notes bear fixed interest at 3.5 percent, payable semi-annually on February 28 and August 31, commencing in August 2018,” the bank’s financial statements explain.
“The bank received the semi-annual interest payment of $2.9 million in September 2019. Accrued interest receivable as at September 30, 2019 amounted to $489,125.”