Despite the challenges of COVID-19 and tough economic conditions on Anguilla, the National Commercial Bank of Anguilla (NCBA) reported a net profit of EC$6.9 million for the fiscal year ending October 31, 2021.
During NCBA’s Special Press Conference, on December 3, 2021, Mr. Geoffrey Scott, Chairman of NCBA, gave a detailed presentation of the bank’s unaudited financial performance for the fiscal year, 2021. The information presented indicates a sound financial standing with positive results for NCBA.
Mr. Scott indicated that in 2017 Hurricane Irma devastated Anguilla as an island and crippled its infrastructures – including the financial and banking institutions…at a cost of 100% of the gross domestic product of Anguilla (GDP). Ongoing challenges to the global economy in general, and to the tourism-driven economy of Anguilla in particular, created many obstacles to the operation of NCBA since 2016. “Most recently, the COVID-19 pandemic created another challenge – a further drop of 30% in Anguilla’s GDP. In the face of all this adversity,” Mr. Scott said, “the bank had to intervene to ensure financial resilience amidst the pandemic.”
He continued: “The bank demonstrated phenomenal resilience. The full year unaudited financial results show that the bank has come through very, very well in the last 12 months.” Commenting on the balance sheet, he explained: “The assets of the bank show growth, both in our total assets (from EC$817 million to EC$873 million) and equity (from EC$46 million to just over EC$51 million)…a sign that the bank is stable, growing and financially healthy.”
The NCBA financial report indicates a net profit of EC$6.9 million after taxes, compared to a net loss of $4.3 million in 2020. The bank’s total assets grew by $56 million, or approximately 7% for the year, to a total assets base of $873 million as of October 31, 2021.
The report also reflects growth in the value of new loans and advances. The value of new loans issued grew from EC$350 million to just under EC$384 million over the year. Mr. Scott observed: “This shows that the bank is lending to Anguillians and to residents of Anguilla.”
Reporting on the bank’s income statement, he explained that the bank’s net loss of about EC$4.3 million was due to increased provisions for bad or underperforming loans of EC$9.7 million on the moratorium loans. Yet, despite that loss, the bank had a net profit of EC$6.9 million, driven by the bank’s focus on cost-effective management and significant growth in the loan and advances portfolio. “This is a very strong and healthy income statement and I am very pleased. The bank has come through a very, very difficult year showing a profit,” Mr. Scott observed.
He continued: “I would call this a stable year for the bank because we have returned to some measure of sustainable profitability which has been the goal for NCBA since it [began operations] 5 years ago. The bank’s profit is not a particularly large profit, but it is a sign that the bank is actually back on sound footing.”
Speaking on the bank’s capital strength and capital adequacy, Mr. Scott noted: “Our capital ratio, as measured by the regulators, is about 9.6% [as compared to] the industry benchmark of 8%. [NCBA remains] very liquid at 28% versus the benchmark of 20%.”
In presenting the unaudited financial performance report for 2021, Mr. Scott concluded that NCBA’s balance sheet’s growth of 7% came despite the pandemic and lack of growth in the economy. He attributed the success and growth to the hard work of the team at NCBA under the leadership of the Chief Executive Officer, Ms. Sharmaine Francois.
Mr. Scott congratulated Ms. Francois and the rest of the team for NCBA’s achievements – over the fiscal year, 2021 – including winning the ECCB’s Bank of the Year Award for Pandemic and Banking. NCBA achieved this award for its response to the pandemic in 2020. “That achievement alone indicates significantly the commitment of all of the staff at the bank to doing the right thing for Anguillians, and the bank, in an unbelievably difficult situation,” he said.
NCBA thanks the people of Anguilla for the continued confidence and support, and recognizes the hard work and commitment of the Board of Directors, Management and staff. NCBA also acknowldges the unwavering support of our shareholder, the Government of Anguilla.
