On August 22nd 2018, NCBA received the capital injection from its Shareholder, the Government of Anguilla, in the amount of EC$59 million. This injection of capital was a crucial part of the resolution process that started in April 2016 with the establishment of NCBA, and follows the successful integration of the operations of the two legacy banks.
NCBA is now in a strong position to contribute to the economic growth of Anguilla which is critical at this time as the island continues its recovery after the impact of Hurricane Irma.
A further important element of the resolution process will involve the transfer of some of the Non-Performing Loans currently managed by the Receiver of CCB and NBA. The primary reason for NCBA acquiring these Non-Performing Loans was the fact that there were insufficient assets, at the time of the resolution, available to allow for the initial transfer of deposit accounts from the legacy banks.
To ensure that NCBA can manage these Non-Performing Loans efficiently and effectively, a new department is in the process of being setup to deal with the collection process. The primary aim is to work with those delinquent clients, wherever possible, to restructure their facilities and to return them to performing status. Immediately following the transfer of these Non-Performing Loans, from the Receiver, we will be contacting all these borrowers to discuss their individual circumstances.
The finalisation of the resolution process has been a complex and complicated transaction with interrelated elements and involved various parties in a series of protracted negotiations. Another major part was the transfer of assets to NCBA at the beginning of the resolution process in April 2016. There were some loans at both CCB and NBA that were under performing and as a consequence, the Bank has, out of necessity, under accounting rules, made sizeable provisions for such facilities which will ultimately affect profits.
Unfortunately, the finalisation of the Bank’s financial statements has been delayed due to the protracted nature of the resolution thus the late release of the Bank’s audited financial statements. The Bank is working with the Resolution Authority, and the Receiver, to complete both the transfer of Non-Performing Loans and finalisation of the financial statements, as quickly as possible, thereby enabling the people of Anguilla to better understand the ongoing situation of the recapitalised Bank.
In the interim, the Bank’s external auditor, Deloitte and Touché, have been carrying out preliminary audit work and will be on island to complete their audit assignment.
While the resolution has been a challenging exercise over many months, the completion of this process will put NCBA in a position to move forward with its mission to contribute to the economic development of Anguilla.
The Board and staff of NCBA take this opportunity to thank our Shareholder the Government of Anguilla for providing the much-needed capital.
Additionally, the unwavering loyalty and support of our customers over the last two years is greatly appreciated.
The Board and staff of NCBA are fully committed to ensuring that the Bank continues to play a major part in the growth and development of Anguilla and its people.
– Press Release
