The indigenous St. Kitts Nevis Anguilla National Bank is reporting another successful year of operations, with after tax profit of $52.3 million and a record payout of 15% dividend to shareholders compared to 10% in 2018.
The bank held its annual general meeting on Monday. According to the director’s report, net interest income for the fiscal year ending June 30, 2019 amounted to $47.7 million, an 8.7 million increase over 2018. It was also announced that a total dividend of $20.3 million will be paid this year.
Customer deposits grew by $5.9 million to $2.8 billion in 2019 when compared to 2018, with savings being one of the main contributors to the rise. Savings deposits rose by $34.4 million or 7.3%.
The Bank remains highly liquid, maintaining a higher level of liquid assets in 2019 over the previous year. Total liquid assets maturing within one year were $2.4 billion in 2019.
According to the Director’s report, “the bank possesses the appropriate amount of liquidity in support of its assets, giving it the ability to meet its contractual obligations as they fall due.”
The National Bank however still carries a high level of non-performing loans, to the tune of almost a half billon dollars. Non-performing loans for 2019 amounted to $486, 501,000, compared to performing loans of $409,331,000 and $4,771,000 in underperforming loans.
Shareholders were also informed of an increase in Directors fees- the Chairman of the Board Alexis Nisbett’s director’s remuneration will reportedly go from $3000 per month to $6500 while the fees for the other directors on the Board will go from $ 2000 to $5000. Some shareholders questioned the considerable hike but were told the fees had not been increased in about 11 years, and the local directors were earning much less than those of other indigenous banks across the region, including the Bank of Nevis.
Directors’ fees and expenses amounted to $1,113,000 in 2019.
The bank also reported on its subsidiaries. National Caribbean Insurance Company achieved a net income before tax of $6.1 million, a $2.4 million or 63.2% increase over the profit of $3.7 million reported for 2018.
At the end of June 2019, National Bank Trust Company also reported a successful year of operations, with after tax income of $0.1 million, an increase of 412.5% over the previous year’s loss of $32,000.
Although the St. Kitts-Nevis Mortgage and investment company reported a loss of $500,000 in 2019, the loss was 11.4% less than that reported for 2018.
For the year ending June 2020, the Group is targeting increases in loans and advances, revenue and shareholders’ equity, as well as lower costs of funds.
The SKNA National Bank has over 5200 shareholders. The Government holds 51% of the group issued share capital, and 49% is held by individuals and other institutions.