NASSAU, BAHAMAS — Bank of The Bahamas (BOB) has closed the sale of its trust operations to Leno Corporate Services Ltd. for $541,000, the BISX-listed lender has reported.
The bank in its 2020 financial statement for year-end June 30, 2020 noted that its strategic plan had called for the sale of its trust operations, with the bank’s board of directors ultimately approving the sale of the trust portfolio to Leno.
“On July 31, 2019, the bank signed the agreement for the sale of its trust assets to Leno for the amount of $561,717, which was subsequently adjusted to $541,717. Following regulatory approvals, the sale closed on October 31, 2020. This transaction met the IFRS 5 Non-current Assets Held for Sale and Discontinued Operations definition of discontinued operations as the trust is a component of the bank that has been disposed of and represents a separate major line of business,” the bank noted.
It added, “As a result of the sale, the bank recorded $541,717 as other operating income and included in the Consolidated Statement of Comprehensive Income for the year ended June 30, 2020 is the net loss for the year from continuing operations amounting to $7,815,958 and the net gain for the year from discontinued operations amounting to $512,752.”
During the year, the bank also recorded $15.3 million in additional provision for loan losses, approximately $5.8 million of which is the result of the COVID-19 pandemic.
“Management used its judgment in the assessment of underlying credit deterioration, significant increase in risk and migration of balances to progressive stages,” the bank noted.