NASSAU, BAHAMAS- The government saw a nearly 20 percent increase in fees and taxes collected from the financial sector in 2024, with total tax revenues from the sector reaching close to $250 million, according to the Central Bank.
The regulator’s report on the Gross Economic Contribution of the Financial Sector in The Bahamas (2024) noted that this significant rise was driven mainly by higher licensing fees from banks and trust companies, whose license and registration fees alone increased by 9.9 percent, contributing an 11.4 percent boost from these institutions.
As the second-largest contributor to the Bahamian economy, the financial sector remains a key driver of growth, accounting for an estimated 15 to 20 percent of the country’s GDP. It employs a large share of the skilled workforce and supports other sectors such as construction, real estate, and wholesale and retail trade through its interconnected activities.
Despite challenges posed by global regulatory reforms limiting new licenses and firm entries, domestic financial institutions—including banks, credit unions, and insurers—saw growth in balance sheets and spending. Employment levels remained stable or slightly declined as companies pursued greater operational efficiencies. Meanwhile, the international financial sector experienced a slight decrease in the number of firms due to external regulatory pressures but expanded fiduciary and asset management services targeting high-net-worth clients.
The report also revealed that the total number of banks and trust companies licensed in The Bahamas declined by five to 192 in 2024, continuing a downward trend from the previous year. Public banks and trust companies fell by two to 72, while restricted, non-active, and nominee licenses dropped by three to 120. Bahamian incorporated entities decreased by one to 44, while euro-currency branches of foreign banks remained steady at nine. Private trust companies, which support fiduciary services, grew by 11 to 180, and non-bank registered representatives administering these vehicles increased by one to 28.
Total domestic banking assets expanded by 3.6 percent to $12.1 billion, surpassing the prior year’s 2.2 percent growth and the five-year average of 3.4 percent. Meanwhile, international banking assets rose slightly by 0.1 percent to $108.0 billion, reversing an 8.2 percent decline in 2023.
Banking sector employment decreased by 1.0 percent to about 3,646 persons, with Bahamian employment down 1.1 percent and non-Bahamian jobs increasing 2.1 percent. The ratio of Bahamian to non-Bahamian employees eased slightly to 94.6 percent.
Total expenditure in the banking sector grew by 8.5 percent to $930.1 million, driven by operational costs rising 9.1 percent to $916.1 million. Non-staff administrative costs surged 13.6 percent to $463.6 million, while salaries increased by 3.6 percent to $xx million. Government fees grew by 8.5 percent to $117.1 million. Capital expenditure declined 20.3 percent to $14.0 million.
Breaking down by sector, domestic banking employment fell 2.3 percent to 2,952, including a 2.2 percent decline in Bahamian staff. In contrast, international banking employment grew 5.2 percent to 694, with Bahamian employees increasing 5.1 percent.
Domestic banking sector expenditure grew 11.8 percent to $720.2 million, driven by a 12.5 percent rise in operational costs. Non-staff administrative costs rose 17.2 percent to $366.6 million, and salaries increased 8.6 percent to $233.0 million. Capital expenditure declined 18.6 percent to $12.1 million.
International banking sector expenditure decreased 1.4 percent to $209.9 million. Operational costs fell 1.0 percent, with salaries contracting 6.3 percent. Government fees increased 38.0 percent to $10.5 million, while capital expenditure dropped 30.2 percent to $2.0 million.
