In a year marked by economic challenge and fiscal conservatism, Bank of The Bahamas pulled dramatically ahead of the rest of the retail banking sector, reporting 31.8% growth in assets and an 8.5% increase in profit.
Figures for the fiscal year ending June 5, 2002 were released last week amidst words of cautious optimism with the coming yearﾴs total asset growth predicted at 10% coupled with a continuing trend toward securing higher market share. Net profit was reported at more than $6.3 million, up from $5.7 million the previous year.
“We are very pleased to report that despite the uncertainties at home and abroad, Bank of The Bahamas experienced robust growth during the 12 months ended June 5, 2002 ,” said Chairman Hugh Sands. “During this time our total assets grew by 31.8% to finish the year at $336 million. Part of this growth is attributable to the bank’s acquisition of Workers Bank’s book of business, part to the growth of Guaranteed Advancement Educational Loan Scheme and perhaps the part we think may be most significant for the future development of the bank, the growth in our commercial and residential mortgage loan portfolios.”
At year-end, the bank had increased its loan book by 38.8% to $252 million while containing asset quality levels.
“Over the years, Bank of The Bahamas has quietly, without fanfare, become the bank of first choice for a growing number of Bahamian businesses,” said Managing Director Paul McWeeney. “Solidly-run and well-managed businesses that consistently provide quality products or services know that our doors at Bank of The Bahamas are open to them.”
The bank with ten branches stretching from Inagua to Grand Bahama and some 200 employees has also beefed up its home mortgage portfolio, which now accounts for about a third of its outstanding loans. And it introduced automated banking at three branches this year with plans to deliver such services from all of its major branches in the near future.
During the year the bank brought on several new management executives, a move, Mr. McWeeney said, “was necessary to ensure that the bank had the level of competencies and expertise required to execute and fulfil key business objectives.”
Reflecting the bankﾴs year of asset, income and market share growth, news for shareholders was also positive. Return on investment was a healthy 19.3%, and earnings per share were .52 cents, up 8.3% from the previous year.
“As we move into the next year with our Strategic Plan 2002 in place, we are prepared to launch new initiatives that we believe will alter the way Bahamians bank,” said Mr. McWeeney. “We are cautious, but at the same time, we are very excited at this important crossroad in the bankﾴs history and we believe that Bank of The Bahamas is well-positioned to assume a unique place in the banking sector.”
