AID Bank's profit increases by 43 percent
The Dominica Agricultural Industrial and Development Bank’s [AID Bank’s] Total Comprehensive Income for the financial year ended June 30, 2011 of $ 2.27 million recorded a 42.7 per cent increase over the previous year’s figure.
Speaking at the Annual General Meeting of the Bank held on Wednesday, April 18 at the Fort Young Hotel, the Chairman of the Board of Directors of the AID Bank, Mr. Ambrose M.J. Sylvester stated:
“Notwithstanding the less than conducive international, regional and national economic landscape, the Bank recorded a number of major achievements for the past financial year.
These included:
• Loan approvals totalling $ 36.33 million which was the second highest level recorded in the forty-year history of the institution, surpassed only by the previous year’s level;
• Disbursement of loans totalling $ 31.29 million was the highest level recorded in any one year in the history of the Bank;
• A decline in the Non-Performing Loan Ratio to 14.6 per cent, the lowest level recorded in the Bank’s recent history and a clear indication of an improvement in the quality of the Bank’s loan portfolio;
• Total Comprehensive Income for the year or net profit of $ 2.3 million was 47.24 per cent greater than the preceding year’s and one of the highest levels recorded in the forty years of the Bank’s existence,
• A significant increase in the assets of the Bank as a result of the transfer of the properties of the Industrial Estate Unit from the Government to the Bank with the concomitant increase in Shareholders’ Equity; and,
• An upgrade in the Bank’s credit rating from ”BB+” to “BBB-“ by the Caribbean Information and Credit Rating Services Ltd. (CariCRIS), a clear indication of the fact that the Bank has achieved tangible improvements in a number of critical areas of its operations.
The Chairman also commented on the improved performance of the Bank in the two years preceding the implementation of the Bank’s Strategic and Operational Plan for the five years - 2009 to 2014 stating:
An even greater indication of the Bank’s improved performance is the comparison with the results of the first two years of the Plan compared with the two years - 2007/2008 and 2008/2009 - which preceded the implementation of the Plan.
Specifically in the areas of:
Loan approvals: For the first two years of the Plan, loan approvals totalled XCD 78.2 million which was 131 per cent greater than the XCD 33.8 million approved in the two years preceding the Plan’s implementation and 4.5 per cent less than the XCD 81.9 million which was targeted.
Disbursements: Disbursements of loans for the first two years of the Plan totalled XCD 52.3 million which was 60 per cent greater than the XCD 32.9 million disbursed in the preceding two years and 35.28 per cent less than the targeted amount.
Funding: For the first two years of the Plan, it was projected that new lines of credit totalling XCD 86.9 million would be obtained. The actual result was that the Bank obtained new lines of credit over the period totalling XCD 72.6 million which was considered a major achievement since for over eight years prior, the Bank had not obtained any funding from external funding agencies.
Non-Performing Loans: The ratio of Non Performing Loans declined from 20.02 per cent at the end of the financial year 2007/2008 to 14.63 per cent at the end of the financial year 2011. This is the lowest level recorded in the recent history of the institution.
In terms of documentation for loans, significant improvements have been effected in the Loan agreements and security documentation.
Improved credit appraisal and project monitoring have also shown improvements in the first two years of the Plan.
The Chairman continued that notwithstanding these notable achievements, the Bank which celebrated its 40th Anniversary in November 2011 will continue its efforts at improving operational efficiencies in its quest to achieve greater levels of performance as it strives to make the AID Bank, a world-class development finance institution of which all Dominicans will be justly proud.
Speaking at the Annual General Meeting of the Bank held on Wednesday, April 18 at the Fort Young Hotel, the Chairman of the Board of Directors of the AID Bank, Mr. Ambrose M.J. Sylvester stated:
“Notwithstanding the less than conducive international, regional and national economic landscape, the Bank recorded a number of major achievements for the past financial year.
These included:
• Loan approvals totalling $ 36.33 million which was the second highest level recorded in the forty-year history of the institution, surpassed only by the previous year’s level;
• Disbursement of loans totalling $ 31.29 million was the highest level recorded in any one year in the history of the Bank;
• A decline in the Non-Performing Loan Ratio to 14.6 per cent, the lowest level recorded in the Bank’s recent history and a clear indication of an improvement in the quality of the Bank’s loan portfolio;
• Total Comprehensive Income for the year or net profit of $ 2.3 million was 47.24 per cent greater than the preceding year’s and one of the highest levels recorded in the forty years of the Bank’s existence,
• A significant increase in the assets of the Bank as a result of the transfer of the properties of the Industrial Estate Unit from the Government to the Bank with the concomitant increase in Shareholders’ Equity; and,
• An upgrade in the Bank’s credit rating from ”BB+” to “BBB-“ by the Caribbean Information and Credit Rating Services Ltd. (CariCRIS), a clear indication of the fact that the Bank has achieved tangible improvements in a number of critical areas of its operations.
The Chairman also commented on the improved performance of the Bank in the two years preceding the implementation of the Bank’s Strategic and Operational Plan for the five years - 2009 to 2014 stating:
An even greater indication of the Bank’s improved performance is the comparison with the results of the first two years of the Plan compared with the two years - 2007/2008 and 2008/2009 - which preceded the implementation of the Plan.
Specifically in the areas of:
Loan approvals: For the first two years of the Plan, loan approvals totalled XCD 78.2 million which was 131 per cent greater than the XCD 33.8 million approved in the two years preceding the Plan’s implementation and 4.5 per cent less than the XCD 81.9 million which was targeted.
Disbursements: Disbursements of loans for the first two years of the Plan totalled XCD 52.3 million which was 60 per cent greater than the XCD 32.9 million disbursed in the preceding two years and 35.28 per cent less than the targeted amount.
Funding: For the first two years of the Plan, it was projected that new lines of credit totalling XCD 86.9 million would be obtained. The actual result was that the Bank obtained new lines of credit over the period totalling XCD 72.6 million which was considered a major achievement since for over eight years prior, the Bank had not obtained any funding from external funding agencies.
Non-Performing Loans: The ratio of Non Performing Loans declined from 20.02 per cent at the end of the financial year 2007/2008 to 14.63 per cent at the end of the financial year 2011. This is the lowest level recorded in the recent history of the institution.
In terms of documentation for loans, significant improvements have been effected in the Loan agreements and security documentation.
Improved credit appraisal and project monitoring have also shown improvements in the first two years of the Plan.
The Chairman continued that notwithstanding these notable achievements, the Bank which celebrated its 40th Anniversary in November 2011 will continue its efforts at improving operational efficiencies in its quest to achieve greater levels of performance as it strives to make the AID Bank, a world-class development finance institution of which all Dominicans will be justly proud.
