CMC-The St Kitts-Nevis based Eastern Caribbean Central Bank (ECCB) has recorded its highest ever profit in its history after registering a net profit of EC$126.2 million for the year ending March 31, 2025.
According to the Report and Statement of Accounts, the ECCB, which is the monetary authority for the Eastern Caribbean Economic and Currency Union (ECCU), said the increase in profit was due to the financial institution continuing to pursue prudent financial management.
The ECCU is comprised of eight member countries, namely Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines. Six of these are independent nations, while Anguilla and Montserrat are British Overseas Territories. All the countries share a common EC dollar and a common monetary policy.
“The Bank delivered a strong financial performance, recording a profit of EC$126.2 million for the year ended 31 March 2025, representing an increase of EC$46.1 million (57.5 per cent) over the profit of EC$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, signed by the bank’s Governor, Grenadian Timothy Antoine.
The report said that the ECCB’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 ECCB’s total assets stood at EC$6,139.3 million, an increase of EC$355.5 million (6.1 per cent) 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 EC$263.3 million (five per cent) to EC$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 EC$92.2 million (16.4 per cent) to EC$653.5 million, primarily attributable to increases in property and equipment and participating governments’ advances moderated by decreases in pension asset, intangible assets and participating governments’ securities.
“Property and equipment increased by EC$55.6 million, attributable to acquisitions of fixed assets and revaluation gains on land and buildings. Participating governments’ advances grew by EC$47.5 million, due to the increase in credit extended to participating governments,” said the report.
It said pension assets fell by EC$8.4 million, owing to actuarial losses from lower-than-expected returns on the pension plan’s assets. The decrease of EC$6.2 million in intangible assets was mainly attributable to the derecognition of software costs.
Regarding expenses, the report said that operating expenses totalled EC$97.7 million, marking a slight decrease of $0.1 million (0.1 per cent) from EC$97.8 million in the previous year.
“The marginal decrease was due to a EC$10.7 million in impairment recoveries on financial assets, tempered by increases of EC$5.8 million in salaries, pensions and other staff benefits, and EC$3.5 million in administrative and general expenses,” the report added.
