BANK OF ST. VINCENT AND THE GRENADINES LIMITED Interim Consolidated Statement of Income As at June 30, 2017 (expressed in thousands of Eastern Caribbean dollars) (Unaudited) June 30, 2017 $'000
(Audited) December 31, 2016 $'000
(Unaudited) June 30, 2016 $'000
12mths Change %
Interest income Interest expense Net interest income
24,620 (8,587) 16,032
49,887 (17,642) 32,245
25,554 (8,777) 16,777
-4% -2% -4%
Other Income Operating Income
6,064 22,097
12,541 44,786
6,038 22,815
0% -3%
Impairment losses on loans and advances Net Operating expenses (Loss)/Profit before income tax
(9,084) (15,442) (2,429)
(6,160) (30,991) 7,635
(510) (15,517) 6,788
1681% 0% -136%
(2,699)
(1,833)
-100%
4,936 0.33
4,955 0.33
-149%
Provision for Income Tax (Loss)/Profit for the year Earnings per share
(2,429) (0.17)
BANK OF ST. VINCENT AND THE GRENADINES LIMITED Interim Consolidated Cash Flows As at June 30, 2017 (expressed in thousands of Eastern Caribbean dollars)
Operating Activities - (Loss)/Profit before income tax - Adjustments for items not affect cash ,changes in non-cash working capital components and other items net Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase in cash and cash equivalents Effects of exchange rate on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
(Unaudited) 6 mths to June 30, 2017 $'000
(Audited) 12 mths to December 31, 2016 $'000
(Unaudited) 6 mths to June 30, 2016 $'000
(2,429)
7,635
6,788
9,768 49,637 (26,403) (4,694) 18,540 158 229,738 248,436
8,503 88,434 (5,254) (6,999) 76,181 (293) 153,850 229,738
2,047 46,440 944 (4,842) 42,542 (178) 153,850 196,214
BOSVG 2017 HALF YEAR REPORT TO SHAREHOLDERS INTRODUCTION Now in its 40th year of operations, the Bank has made steady progress and has impacted positively on the socio-economic development of St. Vincent & the Grenadines. For the first time in its history the Bank’s balance sheet surpassed the $1billion mark as at June 30, 2017; it is anticipated that this upward trend will continue. On June 30th 2017, the Government of St. Vincent & the Grenadines repurchased 31% of the 51% shareholding previously held by the East Caribbean Financial Holding Company Limited. Thus the Bank over the next few months will transition back to a standalone entity. During this phase, the Management will continue to execute strategies aimed at maximizing shareholders wealth in addition to the challenges of mitigating key external issues regarding de-risking and correspondent banking relationships. It is also expected that market growth and the demand for credit will be in line with the levels achieved in 2016.The major challenge will continue to be in the area of asset quality and operational efficiency. Accordingly, it is imperative that Management continue to focus on these areas. Continued focus will also be placed on the implementation of IFRS 9 (Impairment of Financial Assets) as we move towards the January 1, 2018 implementation deadline.
SUMMARY OF FINANCIAL PERFORMANCE The Bank’s overall financial results for the period ended June 30, 2017 reflects the continued challenges within the banking industry thereby resulting in increased level of loan delinquencies, coupled with the increase in recovery time and diminishing collateral values. Consequently, the Bank recorded provisions for loan losses of $9.1 million. With the impact of increased provisions a net loss of $2.4 million was realized compared to net profits of $4.9 million in the first half of 2016. The increased provisions were done in accordance with the relevant accounting standards and were triggered mainly by a reduction in value on commercial real estate in the local market. The performance and results as represented by the other major line items in the income statement experienced challenges in the areas of recovery income and net fee and commission income. The lower performance was supported by cost curtailment of operating expenses. Total revenue for the period ended June 2017 was $30.7 million compared to $31.6 million for June 2016 and total operating income ended at $21.1 million compared to $22.5 million respectively. The Bank‘s overall profibility will be dependent on the level of loan loss provisioning for the remainder of the financial year. Total assets grew to $1 billion from $971 million reported at December 2016. The major component driving the increase was the strong growth in customers’ deposits. The loans and advances portfolio remained relatively flat year on year and the Bank’s liquidity position continued to exceed the regulatory 8% requirement as the system wide liquidity remained steady.
Maurice Edwards Chairman
Sir Errol Allen Director
BANK OF ST. VINCENT AND THE GRENADINES LIMITED Interim Consolidated Balance Sheet As at June 30, 2017 (expressed in thousands of Eastern Caribbean dollars)
Assets Cash and balances with Central Bank Treasury bills Deposits with other banks Originated Loans - Loans & Advances to customers - Bonds Investment securities - held-to-maturity Property and equipment Investment Properties Other assets Income tax recoverable Total assets Liabilities Deposits from banks Due to customers Deferred tax Liabilities Borrowed funds Other liabilities Total Liabilities Equity Share capital Reserves Unrealised loss on investments Retained earnings Total equity and liabilities
(Unaudited) June 30 2017 $'000
(Audited) December 31 2016 $'000
(Unaudited) June 30 2016 $'000
12mths Change %
143,079 10,175 151,878 592,889 10,031 57,484 56,204 2,780 6,782 590 1,031,892
124,259 10,174 140,704 578,814 10,034 42,715 55,558 2,780 5,653 590 971,281
88,514 10,169 141,234 594,935 10,032 37,558 56,658 2,554 6,360 1,180 949,194
62% 0% 8% 0% 0% 53% -1% 9% 7% -50% 9%
68,163 742,171 298 44,246 76,076 930,954
40,041 715,812 298 46,351 62,948 865,450
41,116 696,145 434 48,555 56,871 843,121
66% 7% -31% -9% 34% 10%
20,753 15,741 1,616 62,828 100,938 1,031,892
14,753 14,753 1,530 74,795 105,831 971,281
14,753 14,753 1,752 74,815 106,073 949,194
41% 7% -8% -16% -5% 9%