For the second time in two years, the National Bank of Dominica (NBD) is recording a major loss.
The bank’s annual report shows that for the year ended 2016, the institution recorded a loss of $EC4,663,163.
For the year ending 2015, the bank recorded a loss of $4,357,450.
The bank is expected to hold its annual general meeting on March 23, 2017 where shareholders will be given the bitter pill to swallow.
In his report to shareholders, chairman, Anthony John, says two factors negatively impacted the bank’s earning.
“First, we recorded impairment charges of $7.7-million to address exposure to non-performing loans and advances. Second, we incurred a loss on our externally managed investment portfolio of $10.7-million. Net income suffered accordingly, resulted in a net loss of $4.6-million,” he said.
He said that the bank has had a strong performance in its loan portfolio amidst a “still timid market”.
“On the consumer side, we prioritized mortgage vehicles and education lending and saw a marked increase in education loan in particular,” John said.
Under the bank’s operating expenses, Director’s fees increased by EC$36,736 in the year under review.
In 2015 that figure was EC$218,616 and it moved to EC$255,352 in 2016.
Legal and other professional fees also skyrocketed from EC$694,363 in 2015 to EC$1,190,127 in 2016.
Meantime, Managing Director of the bank, Ellingworth Edwards, said that in the coming year, the focus will be on “strengthening and building strategic relationships that will assist us in successfully growing our business and achieve our stated mission.”
“We will build on some of the ongoing initiatives, improve efficiencies and strengthen internal human resource capacities to deliver improved services,” Edwards said.
The bank has an audited asset base at the end of the financial year June 30, 2016 of EC$1.18 billion or US$437 million.
here is a hint. if you have a mortgage with the bank, go there and ask them to see your original copy or your land or mortgage certificate. wait for it. who they fooling?
that’s a lie. they puting themoney somewhere and they telling people they loosing money. not true, not true, not true
LegalNBD im done with u all . I don’t like the idea of taking one dollar and three dollars for every transaction.
Because they are underperforming they giving trouble to their customers accessing monies in form of loans .What a shame .
you guys going under ah .
The board of directors and senior management should go. This is beyond incompetence. Their conduct borders on engaging in imprudent banking practices, and as such puts the financial system at great risk.
While the asset base of the bank is impressive, the customer base in Dominica is just too small to grow and remain sustainable and profitable. This bank has had the opportunity to invest in operations outside Dominica. Although its investment in a Cayman Islands bank failed, I believe there are far less riskier investments in more diverse markets, especially those with significant Dominican populations.
The same way the government is chasing its tail trying to stay out of debt, NDB is doing the same by exhausting the overly taxed Dominican consumer. Whether thru wholly-owned acquisitions, joint-ventures or other cooperative agreements with other banks, NDB needs to see it’s future outside Dominica if it is to remain viable and truly independent of government.
They have to, my $4000. Maybe went to cover some of allu loss. Vengeance is from God
Is it me or did I read a report recently saying that this bank was profitable?
Everything and every institution of this island has failed under the rogues posing as government! This is what the island will reap when the people supports and vote for a man based on,”I love my pm.” Love for and adoration for a man does not make a country develop! While the people blindly support a prime mistake,he’s taking the island to destruction!!!
Warning! Warning! i starting to get goose bumps, i took our pm`s advise to bank in Dominica, buy land in Dominica, and now it appears the bank is sinking? Where there`s smoke there is fire, just praying my money does not go up in smoke, after all thats all i have to survive for the rest of my life. Mr. pm tell me what to do. Captain! the ship might be sinking, should i stay in it? or should i come take out my money ? please tell me what to do!
Is the bank charging to use it own card?
Look at Dominica and see the individuals on the boards. They are failed retired men on women who retired with nothing and will do anything to be on a board to earn something to meet there commitment, while they young energetic university graduate has to run to live and utilize their knowledge elsewhere, build another country.
We say we have a young PM but he has crippled the young persons of Dominica especially if you don’t support him. I feel sad for my country and we poor people keep selling their soul for labor
Where are these guys investing their money? Last year was a very good year on the equity markets. You could literally close your eyes and make money. Something does not seem right.
Exactly! What happened to the missing securities reported in the prior year….
On a scenario where the prime Minister is the lender of first resort for HHV Whitchurch, and now for the reopening of DCP ,Crazy coconut,and who knows which other businesses how can the bank make money.Then Skerritt puts Money in the NB of Dominica for farmers who have difficulty finding markets so are reluctant to access the money,and the economy stinks so how can the bank make profits.These are definite signs of a failing state
Why do you make such reckless statements fabricating and distorting facts. What is your motivation for constantly doing such thing, wow, is this what you enjoy doing peddling propaganda, what a life.
The manager does not have a vision, he is killing the growth.
they are in the business of denying loans
I’m listening carefully and looking prudently.
All you better not form de fool with people.
we following closely
I’m not the brightest Dominican, I know but my peasant brain tells me my money is not secure in that bank, so I have put it in Credit Union instead. Did you know that the government does not have to guarantee any deposits by law? Boy, if that bank ever gets into trouble you can kiss goodbye to your money. They can call me a traitor if they like but is my money after all.
What you say is partly true because the credit union still banks with NBD. They still take the Credit union money to invest etc so if NBD runs into a liquidity problem , it trickles down to them also.
Why do you think the other credit unions joined, or were forced to join, they were generating losses and they still held their deposits with the NCCU, which realized that they continuous losses would have adverse effects on their books so they had to mandate better accountability and compliance.
The FIU has been on a path to make the NCCU follow the same banking laws because their asset base and operations etc have exceeded that of credit union regulations originally set up.
Why do you make such comment, quote “Boy, if that bank ever gets into trouble you can kiss goodbye to your money” baloney, such statement shows a lazy mind, get your facts before making such statement. The NBD is regulated by The ECCB there are procedures in place to deal with such matter.
The board of the NBD consists of eight individuals, listed on the Bank’s own website, under “Board of Directors – National Bank of Dominica”, http://www.nbdominica.com/en/index.php?option=com_contents&view=.
These are not full- time positions but supervisory only as their is another eight man/women team responsible for the day-to-day management of the Bank.
The cost for this supervisory Board (incl. the Chairman) works out at an average E.C.$.31,919/person per year or E.C.$.2,660/month. This seems pretty steep to me for a poor little country like Dominica and the relative small size of this operation. Are we getting value for money, especially in view of the recurrent losses incurred.
Hint hint. Is the government of Dominica dipping into the NBD’s piggy bank. Oink Oink !!!!
” I know what I know and said what I said
things come and things go
it’s a thing that i keep in the back of my head”
Really how is this possible every time we use our ATM card we are charged $1.00 and as of lost 2 weeks we are being charged $3.00 to withdrew our own money that is to say $1000 and under. The amount of persons who use they card on a daily basic should generate a hefty sum per annum. This is just two charges am away of. What about the other charges which are out they that collect money for the bank. We should not be charged the $3.00 to take out our own money this is just so wrong. Am telling persons to move all your money to Credit Unions.
You are right however read closely, it is the bad loans and bad investments.
You don’t expect the bank to just make money from their fees and pay you interest, do you.
They need to reevaluate their finance /investment team.
Good! The banks in DA are terrible at customer service. Terrible!
When they improve and be responsive to their clients needs, things will improve.
What I don’t understand is while the national Bank keeps registering significant loss, the actions of the finance Minister seems to suggest he is making significant profit and no one cares to investigate
Stop asking hard working people in the us for social security number and u all will see the difference mind you all business
They need to cut the head of the snake inside there and all the big salary/ position people . Start with fresh thinking people.
Assertive like the rod of Moses!
The Minister Of Finance is there alright. Ask the bank if the largest shareholder is dipping into yhr cash register and not returning the money.
The store manager know whsts going on but cant say a darn thing
If I was a shareholder i would want to go thru the details. The devil is in the details. If the bank lost 4.6 Million las fiscal year why the director fees went up byb $37000? The fat should have been trimmed from within. If management co tinued along the same path then the outcome is not likely ti change.
Dominica-the government own 60% of the National Bank and we should be concerned. We are the majority shareholders. We again lost money in external investments -what exactly are thise external investments?
How many more indicators do we need before we the people realize that the economy is comatosed and it is time to go in a new direction.
10.7 million external investment loss!!!! Hmmmmm. It is sad when both aid bank and national Bank are counting on student loans to make profit. Aid bank has killer interest rates. Yet, our government has built toilets, hotels, coffee plants, abbatoir, all of which if were financed by the banks would provide opportunity for growth through interest. The fact that they did not, tells there was no profitability expected. Dominica will crash in misery before people realize the Gov policies through the years have resulted in the current lack of growth in all sectors.
I DAMN GLAD. not tight allu playing tight to give loan nur. See if NCCU suffering so.
Well allu loan officer move, so lets see if at the end of 2017, things will be better.
soo “externally managed investment portfolio of $10.7-million” soo…you all can’t manage our money properly; since you take the money and invest it to return a profit hmm hmm hmm I now of investment instruments which return a nice profit,
so the bank reporting losses yet the director’s fees (directors bonus) increasing
I guess they having more meetings to maybe discuss how to get the bank on right path, which is normal but the rate of fees should decrease per meeting also.