BOB reports $14M Q3 net income as operating expenses see nearly $5 million increase

Wed, May 15th 2024, 04:10 AM

NASSAU, BAHAMAS- The Bank of The Bahamas saw a net income of $14 million according to its third-quarter financial results, which also revealed a nearly $ 5 million increase in operating expenses. 

Neil Strachan, the BISX-listed lender's managing director commenting on the bank's performance for the period ended March 21st noted that the $14 million net income was a $4.2 million increase over BOB's performance during the same period in 2023.

We are pleased to report that the Bank recorded net income of $14 million for the period ended March 31, 2024, compared to the same period last year of $9.8 million.

Strachan noted: "The Bank's overall operating income increased by $2.7 million when compared to the same period in the previous year. Higher interest income from the Bank's lending campaigns and the investment of its excess liquidity are attributed to this improving performance. Similarly, as the Bank recorded higher income from its auxiliary revenue streams particularly merchant services, prepaid cards, and credit card products, its non-interest revenue also contributed to the overall positive variance. We anticipate further growth in this segment as the Bank prepares to launch more improvements and innovations of its products and services.

Strachan added: "The bank's third quarter financial performance was also enhanced by a $3.5 million net impairment reversal, as opposed to a $2.6 million net impairment loss during the same period last year. The bank updates its provisions assumptions based on improvements in underlying factors, combined with the tenacious efforts of the delinquency management team in booking recoveries and reversals during the period. However, the costs of operating a business remain high. The main causes of the $4.6 million increase in operating expenses were banking and business license fees, depreciation, employee expenses, occupancy costs, and other administrative expenses. Building insurance and administrative costs went up in tandem with regulatory and statutory license fees."

According to Strachan, the bank's financial position remains strong with total assets of $990.6 million as of March 31st, 2024, of which loans and advances to customers accounted for $391.9 million.

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