NASSAU, BAHAMAS – The Bank of the Bahamas has reported a record year, with net income surging nearly 73 percent to $19.7 million.
This strong performance was driven by robust retail banking income, improved asset quality, and increased credit production.
For the fiscal year ending June 30, 2024, the Bank of the Bahamas recorded a net income of $19.7 million, a significant jump from $11.4 million in the prior year. This achievement is attributed to an aggressive sales strategy, enhanced operational efficiencies in the credit process, and strong collections and recovery efforts.
“We’ve delivered exceptional results in Retail Banking, with consumer loans growing by 21 percent, translating to a $27 million increase, supported by resilient net income,” said Neil Strachan, Managing Director of Bank of The Bahamas Limited. He also noted that the bank’s expanding customer base and favorable market conditions enabled it to boost interest income through reinvestments of excess liquidity.
Throughout the year, the bank rolled out several key initiatives contributing to its success, including the distribution of Debit Cards, the opening of a Mortgage Center, and the relaunch of an enhanced Online Banking Platform for retail clients. The bank also spearheaded successful sales campaigns and credit growth initiatives, such as a Mortgage Fair and Auto Shows, and participated in financial symposiums across New Providence and the Family Islands.
“Our strategic partnerships and initiatives have been crucial to our success,” added Mr. Strachan. “Our overall operating income increased by $4.7 million compared to the previous fiscal year, with $4.2 million of that increase coming from interest income generated by our lending campaigns and smart investments in money market and investment vehicles. Additionally, a $0.5 million increase in non-interest revenue, driven by higher income from merchant services and card products, further strengthened our financial performance,” he said.
The bank also benefited from a net impairment reversal of $5.8 million, a significant turnaround from the $3.2 million net impairment loss recorded the previous year. This reversal was largely due to the bank’s diligent delinquency management team, improved economic conditions, and a lower unemployment rate.
Despite the strong performance, the bank’s operating expenses increased by $5.3 million, driven by higher depreciation, employee expenses, business license fees, IT costs, and other administrative expenses. Regulatory and statutory license fees, along with rising building insurance and administrative costs, also contributed to the increase. “Managing these costs is challenging, but we remain committed to investing in our employees, physical locations, and technology to better serve our customers,” said Mr. Strachan.
As of June 30, 2024, the bank’s total assets stood at $998.7 million, with loans and advances to customers accounting for $401.4 million. The bank’s strong financial position is further highlighted by a capital ratio (CET1) of 43.4 percent, well above the Central Bank’s minimum requirement of 18 percent, with total equity closing at $199.7 million.
Looking ahead, the bank remains focused on continuous improvement in digital banking while advancing its customer-centric strategic plan. “We are deeply grateful for the unwavering support of our loyal customers, senior management, directors, shareholders, and the entire BOB team,” said Mr. Strachan. “As we move forward, we are committed to being ‘Your Bank of Solutions’ and delivering excellence in everything we do.”
