Bank of Bahamas records $2.2 mil. half year profit

Bank of Bahamas records $2.2 mil. half year profit
BOB logo with new tagline

NASSAU, BAHAMAS – Bank of The Bahamas (BOB) continues to report positive growth, with its half year profits just over $2 million.

The troubled BISX-listed bank began to return to profitability in its fiscal year 2018 after suffering five years of consecutive net losses.

During the fiscal year 2020, the Bank recorded a net income of $2.2 million for the six months ended December 31, 2019.

BOB’s managing director Kenrick Brathwaite said: “We remain committed to our expanded Strategic Plan which encompasses the strengthening of our systems, products and overall customer service.

“Comparing the current period ended December 31, 2019 to the prior period ended December 31, 2018, the Bank’s total operating income increased by $1.9 million or 19.37 percent for the current quarter and $2.7 million or 13.80 percent for the current fiscal year to date, explained largely by the $1.0 million increase in net interest income and $0.9 million increase in net non-interest income for the quarter; and $2.0 million and $0.8 million increases in net interest income and non-interest income year to date, respectively.”

Brathwaite said: “The positive variance in net interest income year to date was due to an increase in interest revenue by $1.3 million primarily from consumer loans interest income as a result of the Bank’s consumer loans campaign; and lower interest expense by $0.7 million due to certain interest rates and deposit base reduction.

“The Bank’s net non-interest income also increased year to date primarily due to the gain on the sale of the Bank’s Trust business and higher fees and commission income,” he continued.

“The Bank’s operating expenses increased by $0.6 million or 8.39 percent for the quarter and $1.3 million or 9.81 percent year to date largely owing to the increase in employee expenses, consistent with the Bank’s initiative to support the planned growth.

“Net credit loss expense for the quarter ended December 31, 2019 increased by $1.5 million or 143.89 per cent compared to the quarter ended December 31, 2018; and $3.0 million or 140.51 per cent increase for the six months period ended December 31, 2019 versus December 31, 2018 due to the provision impact of the last hurricane and the IFRS 9 provision impact related to the overall portfolio growth.”

According to Brathwaite, the bank continues to maintain a strong financial position with total assets of $866 million, with the composite of loans and advances, net of $363.2 million as at December 31, 2019, which showed $47.9 million or 5.85% percent and$19.1 million or 5.54 percent increase, respectively, since June 30, 2019.”

He said: “The Bank’s liquidity position also remained strong as its cash and cash equivalents stood at $212.5 million, which showed a $55.0 million or 34.93 percent increase since June 30, 2019.

“The Bank’s key capital ratios continued to be in compliance with regulatory requirements, with CET1 Ratio of 40 percent, well above the Central Bank’s minimum requirement of 9.6 percent. The Bank’s total equity closed at $163.5 million, higher than the June 30, 2019 balance of $161.5 million, as net income of $2.2 million is reported for the period.”