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STATEMENT OF PROFIT OR LOSS
The 2016/17 financial year was a year of recovery for
the ECCB as the Bank reported a net profit of $6.3
million, an increase of $16.3 million (163.12 per cent)
compared to the previous financial year where a net
loss of $10.0 million was reported.
Operating income for the 2016/17 financial year
continued on an upward trend, growing from $61.0
million to $77.5 million, an increase of $16.5 million or
27.07per cent over theprevious year. This performance
was largely driven by an increase in interest income
on the Bank’s foreign reserve portfolio coupled with
the recognition of income from banking licence fees
and penalties. The performance of the Bank’s foreign
reserve assets is dependent on the performance of
the US economy and the US Treasury market. During
the year, there was moderate improvement in interest
rates as the Federal Reserve increased the benchmark
interest rate in December 2016 and March 2017. This
action positively impacted the performance of the
Bank’s foreign reserve assets. Additionally, interest
income was positively impacted by reforms in the
money market fund industry which became effective in
October 2016. These reforms led to reduced demand
for certain money market funds which resulted in an
increase in money market rates.
Chart VIII - Operating Income (EC$’0000)
47
ECCB ANNUAL REPORT 2016/2017
Chart VII - Net Profit /(Loss) (EC$’000)
Graph X - Income Mixed FY 2016
Graph IX - Income Mixed FY 2017