Bank of The Bahamas Limited is on a path to broaden its financial services base, the Bank’s 2002 Annual Report shows.
Released on Tuesday, the report reflects that as of June 30, 2002, the Bank’s total assets of $300 million, despite the significant challenges of the previous financial year.
And, to support this strategy, the Bank recently expanded the Executive Management Team to include the levels of competencies and expertise required to fulfill business objectives.
The Bank is also establishing “formidable” alliances with local and international players within dependent business sectors with the aim of achieving solutions to evolving business challenges.
In this regard, the Bank’s Executive Management reports that it is well on its way to attaining its goals.
“We are also pleased to report that during the year the Bank continued to improve upon its information systems and now offers 24 hour banking services to its customer via Automated Teller Machines at its Shirley Street, Village Road and Freeport Branches.
“Such electronic banking features will continue to be expanded upon in the near future. This effort is consistent with the Bank’s Strategic Plan to fulfill the growing needs of its expanding customer base.”
The 2002 Annual Report reflects the Bank’s financial performance over the past fiscal year, lists it Board of Directors and Executive Management team, consolidated balance sheet, cash flow statements and financial statements audited by the accounting firm of Deloitte & Touche. Newspaper clippings of business articles printed in The Nassau Guardian and The Tribune complement the information in the 32-page Report.
“In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Bank as of June 2002, and the results of its operations and its cash flows for the year then ended in accordance with International Accounting Standards,” Deloitte & Touche notes in the Report.
ļ¾ Paul McWeeney
Bank of The Bahamas Limited Managing Director
According to the Bank’s Chairman Hugh Sands, and Managing Director Paul McWeeney, the global events that occurred during the Bank’s fiscal period were enormous in scale and will certainly hold a significant place in the annals of history.
“The consequential shock waves transcended economic and geographic borders having a potentially disastrous effect on The Bahamas, not only from an economic standpoint, but also, and perhaps more importantly, on the way in which we live and think,” they said.
They noted that given the sudden and dramatic impact on the livelihoods of Bahamians and specifically, the customers and shareholders of Bank of The Bahamas Limited, “we were pleased to have been among the first of the corporate citizenry to offer immediate financial assistance thereby softening the effect of the financial contraction that threatened the bedrock of many communities and families.”
Added the executives: “In this environment we were challenged to continue to strengthen your Bank so that it could ably render the noted financial assistance while improving financial performance and ultimately shareholder value.
An assessment of our financial results for the 2002 fiscal year clearly demonstrates the attainment of these objectives.”
An overview of the year shows that it was one of significant challenges for the Financial Services Sector.
The tenuous economic conditions, which sparked midway through the cycle, were ignited by the catastrophic events of the Bay Street Straw Market fire, and 9/11.
“Despite those challenges the Bank’s strategic direction proved to be resilient and led to the achievement of a new plateau with total assets exceeding $300 million,” the Report says.
“This milestone is noteworthy not only because it represented a dramatic jump in the Bank’s footings of 31.8 percent, but also because it occurred when the overall growth in the sector was quite anemic.”
The Bank’s growth continued in line with business objectives and was attributable to three major areas, a significant increase in productive Commercial & Industrial Loans and Residential Mortgages, the acquisition of Workers Bank Limited and participation in the Government Guaranteed Advanced Educational Loan Scheme (GGAELS).
The Bank’s Strategic Plan adopts a customer centric business approach with intelligent growth, the Report says.
“Therefore we are on a path to broaden our financial services.”
The Bank’s performance is as follows:
* TOTAL ASSETS – Total assets increased by 31.82 percent to $33,911,466.
This growth reflects the Bank’s expanding customer base and improving market share. Since its inception in 2000 the Bank participated in GGAELS.
The Bank has capped its credit risk commitment to GGAELS at $33 million. In addition, the Bank has entered into an agreement to sell down by $13 million its participation in this Scheme during the 2003 fiscal year.
* TOTAL LOANS – The Bank’s Loan Portfolio jumped 38.77 percent to $252,265,034 during the year. The growth areas were Commercial & Industrial Loans and Residential Mortgages.
The Bank’s policy has been to emphasize those areas and limit the growth in Consumer Loans that are more risky and costly to manage.
* TOTAL DEPOSITS – Over the years the public has continued to display its confidence in the Bank and this is best depicted in the sustained growth in the Bank’s deposit base.
Substantial growth continues to be seen by the Private Sector where professional and institutional clients have clearly developed improved fiduciary comfort in the Bank’s ability to safeguard funds and provide financial services.
* LIQUIDITY – The Central Bank of The Bahamas establishes minimum reserve requirements, which are based on the Bank’s Deposit base that must be maintained by the Bank at all times. In addition, based on daily operating requirements, investment activities and ongoing prudent fiscal management, the Bank maintains adequate Liquidity positions.
This is reflected in Liquidity ratios of 17.62 percent and 21.04 percent when comparing Average Total Cash and Securities to Average Total Assets and Average Total Deposits respectively.
* SHAREHOLDERS’ EQUITY – The Bank’s Shareholders’ Equity stood at 11.0 percent of Average Total Assets at the end of 2002 financial year and adequately supports the Bank’s size and investment activities.
By Lindsay Thompson, The Nassau Guardian
