The Dominica Agricultural Industrial and Development Bank (AID Bank) has recorded a profit of $1.01-million for the financial year ended June 30, 2012.
This figure was however, 55.18 percent lower than the $2.38-million net profit recorded in 2011.
Chairman of the bank’s board of Directors, Martin Charles, revealed at the bank’s Annual General Meeting on Wednesday morning, that a total of 382 loans were approved by the bank with a total value of $34.56-million.
He also said that an estimated 826 jobs were created in the economy through the bank.
“Total disbursements for the year in question amounted to $33.37-million. This amount represents a 6.6 percent increase over total disbursements for the period ended June 30, 2011 when $31.29 million was disbursed,” he said.
Additionally, at the end of June 2012, the principal outstanding in the Bank’s loan portfolio grew by 12.71 percent to $153.36-million compared to $136.06-million outstanding as at June 30, 2011.
Charles also reported a 22.88 percent decline in non-performing loans. According to him at June 30,2012 non-performing loans totalled $23.68-million or 15.44 percent of total loans outstanding at $153.36-million, a decline from the ratio of 20.02 percent as at June 30, 2008.
The total revenue recorded was $13.79-million which was 12.76 percent more than the $12.23 million recorded for the comparative period ended June 30, 2011.
The chairman also highlighted the rapid increase in the bank’s assets and the need to put measures in place to successfully mitigate against inherent risks.
“To this end, the Board of Directors will for the first time in the Bank’s 40 year history, appoint a sub-committee called the Risk and Asset Liability Committee and a risk office/manager,” Charles indicated.
Where are the comparisons mr chair.
Common sense people if you have 10 dollars in 2012 and only give away 1 dollar. but you collect 2 dollars from all who owe you from all 1995 or so. Are you not making profits for the year. What we should hear is the percentages of loans given out for he year. To what type of industry, and what is a degree of those who can pay versus the delinquent. But again one cannot explain if one does not undertstand to even analyse. If it were to prey on the young girls or blow a whistle on the park we would get the full explanation, and techniques
Why did the chairman have to make such an asinine comment about “man of the year award” to disguise the puny performance of his bank? I took the hint from Mr. george. If they can not improve why continue the way they are operating? It would be better, and save costs to re-merge the institution with the NBD.
those of you crying about lower rates. if they lower the rates and then can’t meet their fixed costs i.e. overhead and lose money, the same jokers who want the lower rates will come here and say they don’t know how to manage the bank. you tink we easy in this island?
The employees should be given a bonus, not a dinner, if they do. I bet they will welcome it at Christmastime.
Good People
I read DNO report. Based on what DNO wrote, the comments made are totally irrelevant. We note that the bank improved in all areas, yet its profit declined over last reporting period. This means that overheads and operating costs have increased and it is interesting that no mention was made of those costs. A development bank is not intended to make huge profits. However, it must make sufficient to provide for future maintenance costs and put some funds aside in its reserve for wet days. No organisation will lend money to lending institution if its balance sheet is weak and that means it must have liquid cash invested somewhere.
Unless we hear or read of the bank’s strategy for the next period, then those comments about making a loss next period is irrational. I could write much more, but just think of the little I have written above.
thats little money for a big bank.
When I heard of AID Bank, I thought that they were helping people,they are just squeezing people.The rates on loans are so high. I imagine mysely aquiring a small loan of $50.000 00, I have to pay back over $77.000.00,within a period of 120 months {10yrs}, this includes registration and legal costs. I think that an institution as AID Bank, they should beable to lower the rates.
The government should look into reducing the interest rate. Should you have to pay for legal costs? Should the AID Bank not bear this cost?
The pure, ugly and ungodly politics of this kind of appointees disgusts me ! ! !
One of those days Dominica, Natural justice will come knocking on our door………
Shut the hell up is people like allu that bringing down the country! Everything for allu is politics this and politics that allu people cannot grow up!! Acting like 2 and 3 year ols
tsk i always shake my head when banks,insurance,utility companies etc make millions of dollars in profit by squeezing the poor man.smh
This is worldwide. They do this all the time. They are in this business to get rich through customers. It is too bad customers need their money. Sometimes it is necessary.
The bank is proud to announce that is has made approximately $1.2 million in profit and so many farmers have left the fields,many farmers have serious financial problems,Government should ask the bank to consider refinancing as many loans as possible
I think that you have made a very solid point. AID bank being a development bank may wish to consider your contribution and seek to be more willing to facilitate, negotiate loan restructuring, refinancing and consolidation of debt in turning around the economic fortunes of the country and improving its own asset base, profitability, overall portfolio, image and reputation as a development bank.
Indeed, consideration could be given to reduction of interest rates, extended grace periods, and seeking more amicable ways of resolving disputes resulting from non payment of debts or recoveries so that the bank is not seen as being more interested in possession and disposal of collateral but willing to work closely with debtors (even the bad ones) with a view of ensuring a win-win situation.
In that regard, I partially agree with Mr. Ambrose George that in the current economic environment it may no longer be enough to gauge success of the bank by just looking at number of loans granted or the number of loans disbursed or perhaps level of profitability, as much as these targets are necessary.
“The real measure is where a great number of loans or larger loans are converted to real economic activity and real poverty reduction, more jobs and greater revenue to the state so that more goods and services can be provided to the citizens” – Excellent.
To achieve the above, however, it will be necessary to have good, competent and dedicated management in place at the level of the board and the bank’s management to push a top –down cultural change and business mindset.
We must wish the Aid bank well. For when our financial institutions are doing well, this is a great sign that the country is doing well.
Respectfully
Roseau Valley
$1M is not a large profit for a bank.
happy for the bank but the comment above is in reply to the one just below.
Boy in this hard times for the bank to make all that profit. They need to drop the high interest rate on loans.
Boy DNO readers and or bloggers (most of who are political and UWP/Qidiot) are really coocoo to call a bank profit of $1 Million plenty money….
Had it been a loss Roseau Valley and 1979 and all the others UWP crazies would call it corruption
Actually, you are wrong. This not a huge profit for a development bank. This is actually a lost relative to previous years. I do not think that the reported amount is a lot. It is not for a development bank that reinvests its profits into more affordable loans for developmental projects.
This is not a political issue of bad governnce. AID Bank has been around long before Skerrit and his reformed DLP. The Bank has contributed tremendously to the development of teh country over teh years and it will continue to be with us when Skerrit leaves office-sooner rather than later for the sake of the peace and development of teh country. Therefore, there is no reason to be critical of the bank.
What I would say is that the relatively lower profits compared to more properous years signals an ailing economy in which agriculture, commerce, construction and industry is at an all time low.
Please give 1979, Roseau Valley and others more credit. We are not crazies as your comments on this medium suggest that you are.
Happy holidays to you
Respectfully
Roseau Valley
Roseau Valley said “Please give 1979, Roseau Valley and others more credit. We are not crazies as your comments on this medium suggest that you are.”
These are you buddies at your regular uwp meetings and Qidiot callers?
So on DNO you guys are just bigging up each other…lol
Garcon, vous avez temp écrire et parle coshonie
If it is not a profit what would it be? Have you not considered how many people would love to get a $1M and what they would do with it, if only they would win a lottery or inherit it?
Dat’s how the profit is made lol!
There is a fundamental law which say pass it on the the consumer. You want money to do your business you don’t have right now yes we’ll let you have it but you will pay back x 2 if you are late monthly it goes to x3 it’s like borrrowing from the mafia.
The we the the board and gov’t etc can get bonuses which we invest in houses villas land gold watches if we do not get them as gifts etc.
Readand learn people.