NASSAU, BAHAMAS — The Bank of The Bahamas (BOB) saw a nearly $7 million net operating income for the nine months ending March 31, offset by $8 million in credit loan and impairment losses, the BISX-listed lender has reported.
BOB, in its third-quarter results for fiscal year 2021, noted that for the nine-month period ended March 31, 2021, it recorded net operating income of $6.6 million ($10 million in the prior period). However, credit loan losses and impairment losses of $8 million fully offset the bank’s net operating income, resulting in an overall net loss of $1.4 million.
“Comparing the current period ended March 31, 2021, to the prior period ended March 31, 2020, the bank’s total operating income decreased by $0.1 million (1.25 percent) for the current quarter and $0.9 million (2.60 percent) for the current fiscal year to date due mainly to lower net non-interest income, partially offset by higher net interest income,” the bank reported.
“The impact of the pandemic was immediately felt by the bank on its non-interest income, resulting in an overall decline of $0.4 million and $1.6 million for the current quarter and year to date, respectively.”
It added: “The positive variance in net interest income of $0.2 million and $0.7 million for the current quarter and year to date, respectively, were attributable to higher interest income owing to the bank’s efforts in consumer loan campaigns.
“This was combined with a decrease in interest expense due to a decline in certain deposit balances and interest rates. The bank’s operating expenses increased by $0.5 million or 5.68 percent for the current quarter and $2.6 million or 11.12 percent year to date as higher bank license fee of $0.8 million was recorded by the bank due to the increase in levy imposed by the Central Bank.”
The bank also noted increases in staff costs, depreciation and IT-related expenses as the bank invested in human resources, system innovation and upgrades to support the bank’s planned growth and strategic initiatives.
“Net credit loss expenses of $7.5 million were recorded year to date compared to $7.7 million of net credit loss expenses during the same period of the prior fiscal year — a 3.37 percent positive variance,” BOB noted.
“The bank continues to maintain a strong financial position with total assets of $914.7 million and the composite of loans and advances, net of $384.4 million as at March 31, 2021. Total equity closed at $152.9 million and the bank’s liquidity position also remained strong as its cash and cash equivalents stood at $230.2 million.”
