Commonwealth Bank today reported unaudited total profit of $57.4 million for 2016. Total assets climbed to $1.6 billion at December 31, 2016. Earnings closely paralleled those of 2015 showing only a 0.7% decline. Total assets were up 4.8% over 2015.
“Through continued reinforcement of the Bank’s longstanding business model coupled with a conservative risk assessment process and a sound credit administration program, we were able to effectively weather the economic headwinds experienced during 2016,” said Executive Chairman William B. Sands, Jr..
The Bank’s return on assets (ROA) ratio was 3.36% (2015: 3.51%) while earnings per share (EPS) and return on equity (ROE) were $0.54 (2015: $0.54) and 21.13% (2015: 24.89%), respectively. The Bank indicated that the decrease in ROA and ROE is as a result of the growth in the Bank’s overall assets and equity, respectively while the net income was virtually unchanged.
Commonwealth Bank Chairman William B. Sands, Jr.
Mr. Sands was pleased to advise that The Bank continued its historical pattern of dividend distribution to shareholders as it paid out total dividends of more than $35 million in 2016 ($0.36 per share) to the Bank’s common shareholders which includes $5.9 million that related to 2015 earnings. Additionally, the Bank paid quarterly dividends totaling $5.1 million to preference shareholders.
With a non-performing loan ratio of 4.22%, the Bank continues to report stronger overall credit quality ratings than the industry average of 12.32%. The Bank remains focused on ensuring that the growth in the credit portfolio comes as a result of good quality loans which continues to be a challenge given the current economic environment.
In the fourth quarter, the Bank introduced its chip enabled VISA debit card which offers an improved level of security and convenience to customers. With the new debit card, customers are able to perform point-of-sales and ATM transactions both locally and internationally. To date, customer acceptance and usage of the debit card has been encouraging.
Mr. Sands indicated that even though the year was a challenging one, community and social responsibilities remained important to the Bank. Including contributions to the Bahamas Red Cross, the National Emergency Management Agency (NEMA), The Salvation Army and the Cancer Society of The Bahamas, the Bank’s total financial support of the community totaled $834,000 in 2016.
The Bank attributes much of its success to its 500 plus team of highly engaged professionals who constitutes the essential driving force of the Bank.
