by Linda Straker
- Net profit of EC$126.2 million is highest in ECCB’s history
- Profit largely attributed to higher interest earned on bank’s foreign reserve assets
- Bank’s total assets reflect a 6.1% increase compared to previous financial year
The Report and Statement of Accounts of the Eastern Caribbean Central Bank (ECCB) for the Financial Year ended 31 March 2025 showed that the bank recorded a net profit of EC$126.2 million, the highest in the bank’s history.
Headquartered in St Kitts and Nevis, the ECCB is the monetary authority for Grenada and other members of the Eastern Caribbean Economic and Currency Union (ECCU), responsible for maintaining the stability of the Eastern Caribbean (EC) dollar and the integrity of the banking system. Offices are located in each of the ECCU Member states.
This increase in profit, according to the bank’s 2024/2025 annual report, was due to the bank continuing to pursue prudent financial management. Released on 27 June in accordance with Article 48(1) of the Eastern Caribbean Central Bank Agreement 1983, the Annual Report and Statement of Accounts is for 2024/2025 year ending on 31 March 2025.
“The bank delivered a strong financial performance, recording a profit of $126.2 million for the year ended 31 March 2025, representing an increase of $46.1 million (57.5%) over the profit of $80.2 million in the prior year. This improvement was largely attributed to higher interest earned on the bank’s foreign reserve assets,” said the report, which was signed by Governor Timothy Antoine.
The financial stability section of the report said that the bank’s financial performance for the year reflected strong returns on foreign reserves and solid balance sheet growth. “The increase in equity and the stability in operating expenses further strengthened the bank’s financial position and operating results. These results reflect the bank’s execution of key strategic initiatives and sustained progress in advancing its mandate and long-term priorities,” said the report.
As at 31 March 2025, the bank’s total assets stood at $6,139.3 million, reflecting an increase of $355.5 million (6.1%) compared to the previous financial year. “The expansion in the asset base was driven by growth in both foreign and domestic assets,” said the report, which credits loans to regional governments by international institutions as contributing to the increase in assets.
“Foreign assets rose by $263.3 million (5%) to $5,485.8 million, largely due to inflows from loans issued to member governments by international institutions, the purchase of regional and foreign currencies from commercial banks, and fair value gains on foreign investment securities,” said the report which explained that the increase in foreign assets was partially offset by the net sale of foreign currency balances to commercial banks.
Domestic assets, according to the report, increased by $92.2 million (16.4%) to $653.5 million, primarily attributable to increases in property and equipment and participating governments’ advances, moderated by decreases in pension assets, intangible assets and participating governments’ securities.
“Property and equipment increased by $55.6 million, attributable to acquisitions of fixed assets and revaluation gains on land and buildings. Participating governments’ advances grew by $47.5 million, due to the increase in credit extended to participating governments.”
Pension assets fell by $8.4 million, owing to actuarial losses from lower-than-expected returns on the pension plan’s assets. The decrease of $6.2 million in intangible assets was mainly attributable to the derecognition of software costs.
When it comes to expenses, the report stated that operating expenses for the year ended March 31, 2025, totalled $97.7 million, marking a slight decrease of $0.1 million (0.1%) from $97.8 million in the previous year. “The marginal decrease was due to a $10.7 million in impairment recoveries on financial assets, tempered by increases of $5.8 million in salaries, pensions and other staff benefits, and $3.5 million in administrative and general expenses.”
It’s astounding that we take almost all our foreign assets and “loan” them to countries that are much wealthier than us and who benefits from our investments in their econic growth models. Simply put, we are deliberately helping to further enrich them – while depriving our own region of scarce investment funds.
What an insane strategy! – especially because we certainly need those resources more than they do. Its also astounding that we claim “independence” and “proud soverignity” while still clinging to the economic management policies deliberately left to us by our former colonial masters – all beingdesigned to ensure that THEY continue to drain us of both our financial and human resources in their own best interests. On top of that we go out and “borrow” badly needed pubic secotor infrastructure investment funds when we have all the money we need to access in our regional coffers. We then impose onerous taxes on our economy, to pay off debt that we dont need to have. For instance, in the case of Grenada, we are sitting on almost EC $2 billion of unused bank deposits, which a) the very same banks take our foreign exchange and invest them in US Government securities – proudly declaring “profits” while depriving public and private borrowers access to the same funds and b) Goverment goes out to borrow over $300 million internationally when we already have those funds readiky available in our finacial system?. How much more bucolic can we be?