by Kevon Browne
St. Kitts and Nevis (WINN) – The Eastern Caribbean Central Bank released its “Report and Statement of Accounts for the Financial Year ended March 31, 2023, ” highlighting its yearly performance.
The Real Gross Domestic Product (GDP) growth in the Eastern Caribbean Currency Union (ECCU) for 2022 is estimated to be 8.9 per cent. The ECCU economy is projected to grow at a decelerated rate of 5.0 per cent in 2023.
The Bank recorded a second consecutive year of loss, to the tune of EC$55 million, an increase of $5.4 million compared to a net loss of $49.1 million in the previous financial year. The report attributes the loss to the impact of aggressive rate hikes by the US Federal Reserve.
However, due to the slowdown or cessation of rate hikes by the US Federal Reserve and elevated interest rates during the financial year, the ECCB predicts a return to strong profitability in 2023/2024. Despite the loss, the bank has challenged itself to double the ECCU GDP.
During the 2023-2024 financial year, the Bank will seek to deliver its commitment to focus on implementation through innovative financial practices and collaborations with partners on several strategic initiatives, including the following: Financial Stability; Payments Modernisation and Financial Inclusion; Environmental, Social and Corporate Governance; Data and Digital Transformation and Organisational Effectiveness and Development.
Although the ECCB recorded a loss, assets grew during the financial year.
A synopsis of the 2022/2023 Financial Results are:
- The ECCB’s asset base increased by $103.6 million
- Foreign Assets grew by $31.6 million
- Domestic Assets rose by $72.0 million
- The Bank recorded a net loss of $54.5 million
The ECCB’s asset base increased to $5,937.5 million (5.9 billion) from $5,834 million (5.8 billion), recorded at the end of the 2021/2022 financial year.
According to the financial report, the growth in total assets was driven by increases in Foreign Reserves and Domestic Assets.
See the full report here:
https://user-fc5crhc.cld.bz/ECCB-2022-2023-Annual-Report-and-Financial-Statements/68/
