The East Caribbean Financial Holding Company Limited (ECFH)
The East Caribbean Financial Holding Company (ECFH) is the product of a merger of two financial institutions, the then National Commercial Bank (NCB), and the Saint Lucia Development Bank (SLDB) in 2001. The merger objectives were to provide a broader range of banking and related services at a lower cost and a higher level of efficiency than was previously provided by these institutions operating independently. Click here for the Bank Licence.

ECFH banking subsidiary, Bank of Saint Lucia Limited, has grown into the largest financial services provider in Saint Lucia enjoying a dominant share of the banking market and other financial service areas:

• Encouraging and mobilizing savings.
• Financing commercial, personal and development loans.
• Developing relevant financial products and services to serve the needs of the economy.
• Promoting economic development through the provision of financial services and corporate social responsibility programmes.
• Facilitating the growth of the nascent capital market.
• Fostering entrepreneurship.

Leadership

Evaristus Jn Marie Chairman
M.Sc. MAAT, Acc. Dir.

Rolf Phillips
Managing Director

Delivered Another Year Of Strong Performance In 2023.
The East Caribbean Financial Holding Company Limited (ECFH) and its sole subsidiary Bank of Saint Lucia Limited (BOSL) delivered another year of strong performance in 2023. The reported results reflect its resilience and the firm foundation being built to secure a successful future for the Group and all its stakeholders.

These are characterized by the trust and confidence from our clients, strength of our human resources, prudent risk management, strong balance sheet, well diversified business mix and our relentless disciplined execution of strategies geared to empower all our stakeholders to succeed.

The Operating Environment
During the financial year, the operating environment continued to be masked by economic volatility and uncertainty, persistent high inflation and geopolitical challenges. Notwithstanding these challenges, the Group has positioned itself to capitalize on opportunities to be gained from existing and emerging trends including high international benchmark rates, improvements in digitization, the adoption of generative artificial intelligence (AI), leveraging cloud infrastructure and changing needs and preferences of our clients.

The ECFH Group reported an impressive profit after tax attributable to equity shareholders of $74.7 million for the year ended December 31, 2023. This represented, an increase of $33 million or 79.2% above the profit after tax of $41.7 million reported in 2022.

This year’s improved performance is largely attributed to continued revenue uplift from the high US benchmark interest rates, usage and volume growth in our credit card portfolio, increased foreign exchange income and increased share of profits from our investments in associates.

This sound performance is also supported by our balance sheet growth of $334 million or 12.6%, reflecting the strength of our brand and the success in the initiatives pursued in the prior years, our resilience and ability to overcome economic challenges and identify opportunities for growth.

Net Interest Income
Net interest income was $75.7 million, an increase of $22.2 million or 41.6% from the prior year. The increase was driven by a $16.3 million increase in interest income on investments and bank deposits, an increase of $6.2 million in interest on loans, partially offset by a net increase in interest expense of $202 thousand.

The significant boost in investment income came from the strategic placements of cash arising from investment maturities and deposit growth to short term instruments including money market and Certificates of deposits in order to benefit from high rates on the short end of the US yield curve.

The Group actively monitors market sentiments and expectations to take the optimal investment decisions.

Growth in interest income on loans and advances was driven by short term growth in the corporate and overdraft portfolios within the financial year. We also benefited from growth within the retail and mortgage portfolios.

The average yield on loans remained relatively flat from 6.1% to 6% while the average yield on overdrafts improved from 11.92% to 16.33%. The average yield on overdrafts improved reflecting greater utilization of overdraft facility on higher rate accounts.

The marginal growth in interest expense reflects the net impact of increased interest cost arising from growth in customer savings deposits and term deposits respectively and the cost savings arising from principal reductions on external borrowings.

The average yield on deposits declined by 6 basis points from 1.10% to 1.04% as deposit growth in non-interest-bearing demand deposits surpassed growth in interest bearing deposits.