Despite ongoing challenges faced in the aftermath of the COVID-19 pandemic, the ECFH group of companies was able to record another profitable year, for the period ended 31st December, 2022. This, of course, would not have been possible without the commitment and diligence of the staff and management.

During the year under review, we redoubled efforts to ensure that the Bank remains on a path of profitability. I am pleased to report that for the year ended 31st December 2022, the Group improved its profitability over last year, and after a long dividend drought, the Board of Directors will recommend the payment of dividends to the ordinary shareholders this year.

The Board remains cautiously optimistic about a positive outlook for the Bank, notwithstanding some of the lurking economic challenges. Our strategic initiatives continue to bear fruit, and all indications suggest that the group’s profitability and asset base are on the rise.

The lurking economic challenges I referred to reside in the global, regional, and local environments.

Local Environment
At home, the local economy is projected to grow by 2.4 percent in 2023. An anticipated increase in tourism arrivals, significant investments in the hotel-room stock, and additional international airlift are expected to drive economic activity during next year, with economic growth being projected at 5.0 percent in 2024.

While economic recovery is well underway in Saint Lucia, negative external economic events can derail the growth trajectory of the local economy. Mindful of these risks, the Bank continues to make the most of new economic opportunities as they present themselves.

Strategic Outlook
In 2022, the Board of Directors continued to lead the charge by providing guidance under the Bank’s strategic plan: “Sustaining Profitability through Diversification, Digital Transformation and Cost Optimization.” The group’s performance for the financial year which ended December 31st, 2022, has allowed for the maximization of investment opportunities, effective risk management, strategic positioning of its human resource capacity, and investment in modern technology, all designed to create added value for its customers and shareholders.

Financial Results
The Group’s financial performance for the year ended December 31st, 2022, reported a much-welcomed profit after tax of $41.7 million, an increase of 82% over last year’s ($22.9 million).

The Bank’s asset base remains robust, with its capital adequacy two-and-a half times the regulatory requirement, and its liquidity strong. The Group’s current position, though significantly better than the previous two years, remains below the pre-pandemic net profit after tax of $55 million in 2019.

The Group recorded growth of $197million in its balance sheet stemming from an increase in customer deposits. While loans and advances grew by $57 million, they remain at 32% of total assets and only 38% of total customer deposits (prudential benchmark 85%), a measure of the Bank’s excess liquidity.

Notwithstanding the strong operating net profit after tax recorded this year, the Group was impacted by a comprehensive loss of $12.6 million due to unrealized losses on investments.

However, we are pleased to advise that considering that the Group has reported a sustainable net profit after tax for the year, the Board of Directors will recommend that a dividend of 50 cents per share be paid to ordinary shareholders on record.

The year 2023 is expected to be another profitable year for the Group. The Bank remains well positioned in meeting its strategic objectives for 2023, providing added value to all its stakeholders: customers, staff, and shareholders.

Rolf Phillips
Managing Director East Caribbean Financial Holding Company Limited

Corporate information
In October 2016 the East Caribbean Financial Holding Company Limited was amalgamated with Bank of Saint Lucia Limited and ECFH Global Investment Solutions Limited in accordance with the provisions of the Companies Act CAP 13.01, Revised Laws of Saint Lucia and continued as Bank of Saint Lucia Limited.

Another company with the same name East Caribbean Financial Holding Company Limited (ECFH) was then reincorporated under the same act to hold the shares of Bank of Saint Lucia Limited, Bank of Saint Lucia International Limited and Bank of St. Vincent & the Grenadines.

ECFH is in compliance with the Companies Act and Banking Act and the provisions of the Insurance Act, 1995.

The principal activity of ECFH and its subsidiary – Bank of St. Lucia Limited, (the “Group”) is the provision of financial services. The registered office and principal place of business of the Company is located at No.1 Bridge Street, Castries, Saint Lucia.

ECFH is listed on the Eastern Caribbean Securities Exchange.

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