The Dominica Agricultural Industrial and Development (AID) Bank has reported a net profit of $2.69-million, for the financial year ending June 30, 2015.
The net profit was the second largest in the bank’s 44-year history, Chairman of the bank’s Board of Directors, Martin Charles said at the Annual General Meeting of Shareholders, on Wednesday morning.
“I am especially delighted this morning to report that net profit for the financial year was $2.69 million. It was 3.08% lesser than the 2.78 million net profit recorded in 2014,” he said. “This is the bank’s second largest profit after the restated figure for the financial year ended June 30, 2014, which was the largest in the bank’s 44-year history.”
He reported that the total comprehensive income was $6.12-million for the year under review, after recognizing the revaluation excess for AID Bank’s office building.
The Chairman also shed light on some of the bank’s internal challenges, such as liquidity, and the bank’s need to differentiate it’s brand as the only development bank in Dominica.
“Too much liquidity is an indication of a lack of bankable projects, and too little implies that additional sources of liquidity are required. The ideal is when liquidity is adequate, and it is channelled toward productive uses and opportunities. Indeed, with new lines of credit, we will ensure that these resources towards productive uses, notwithstanding the challenges of liquidity,” Charles explained. “The bank has to remain relevant to its mandates. We see an upsurge in products and services that are now being offered by our competitors—products that were once unique to the AID Bank. Now, more than ever, we have to sharpen our skills, products, and services. We need to get back to serving a niche market—namely start-up businesses that cannot access traditional funding through the commercial banks. It is with this strategy that we can remain relevant to growth in the productive sectors in this economy, as the only development on island.”
The bank’s total loan approvals amounted to $28.92-million — a 7.43% increase in comparison to the previous year’s loan approvals of $26.92-million.
Approvals for tourism and other productive sector enterprises amounted to $13.9 million — a 45.97% total of approvals. Loan approvals for mortgage, student, and other categories amounted to $15-million, or 54.03% total approvals.
Additionally, the bank successfully launched its mega mortgage loan programme, with an attractive interest rate of 6.5%, in April 2015, resulting in approvals of $7.13 million by June 2015.
Charles stated that “while the goal of the bank is not profit maximization, in order to continue to expand its contribution to the national economy and to maximize stakeholder value, the bank’s operations must be financially sustainable.”
He ended with the promise that the bank has taken steps to address the question of providing quality customer service through the introduction of an appointment service, and enhancement of its customer loan checklists. The bank, he said, is sharpening its focus to deliver more to its customer within a more reasonable time-frame.
As with any business, customer satisfaction and hence attraction to the business is key. Major changes must be made in satifying the patrons by ameliorating their experiences with your officials. The loans at the national bank are very unattractive, and even when one bites the bullet and apply, it is made so difficult to realize sucess.
Super huge changes are required. Start the clean up if you want to be profitable.
The only problem I have with AID Bank is that they don’t give people a pass-book to see where their loan is.
And they charging TOO much money for a statement.
You want the abattoir open after next week and it is now you want farmers to take loans to produce animals for it to function properly? By all means, take a loan but make sure you do not sign to deliver all your animals to the sate owned abattoir for prices fixed by the Govt. and for you to have to wait for your money. Roosevelt, your own people inside your government are afraid to tell you to truth. Have a peaceful Easter anyway.
Good Job Sir Corbett, They may forget to mention your name but Julius Corbett will be remembered for the Banker with a good track record,,,,,,,,,,,,,,,,,,, A manager who knows how to bring net profit to any banking institution he manages.
If the AID Bank in fact made such a “huge” profit it simply means that the AID Bank’s lending rates are too high.
The idea behind a development bank is to provide financing at concessionary rates. So low that other commercial banks cannot compete–so the financing should go to those businesses or industries with growth potential.
Who are you fooling Martin CHARLES?
ignorant people all over! You my friend are one of the reasons why the country will move forward at a slow pace!
Cooking de books
Congratulations Aid bank and keep assisting the people of Domiica don’t do like nbd
CONGRATULATIONS ARE IN ORDER. Thank you Mr. Julius Corbett for a job well done. God bless you sir.
Are we really serious in this country, Do you people realized the people who leads the institutions of growth in our beloved Dominica. What’s wrong with you people. Well I sure don’t blame the government because they were elected by the people
NBD reported $4.4M loss in 2015. What is the secret to your profit?
“The National Bank of Dominica (NBD) is reporting a net loss of $4.4-million for the year 2015.” Chairman of the Board of NBD, Anthony John said. WHICH ONE CANCELLED OUT THE OTHER?
This bank is set to bury nbd, as the leading development/commercial bank. A lot of nbd clients have moved their mortgages to aid bank…great Job. Aid bank. Dominica needs this. If the banks are not borrowing the economy becomes stagnant.
Do they need to “borrow?” I thought lending was their main order of the day.
I have always observed Dominicans have a problem with the terms “lend to” “borrow from”….they mix them up nonchalantly.
Wait a minute! NBD reported a loss of $4.4 million dollars and AID Bank is reporting a PROFIT of $2.69, at a time when agriculture is at it’s worse? Something is wrong here. Are they operating in different countries? Is the NBD located in Dominica while the AID bank is located it Macaw, China?
Can I even trust / believe anything this communist like government has any part in? Can I even trust / believe information that is released by Martin Charles? Wasn’t he part of a delegation that allegedly signed a loan for an international airport with a China group? Wasn’t his name called in a post Erika food relief supply. I do not know; I am just simply asking
@ I want to know, Since you are so interesting in wanting to know, may be with all the criteria which you have acquired in banking, you can apply to manage the bank and kick Martin out.
Can i trust and believe that you have any form of common sense? Some Dominicans need to stop making everything so political and commend institutions when they deserve it. Congratulations to the Aid Bank and well done
Our banks need to play a bigger role in directing investment in our country. To many projects that can be funded through private enterprise is done by the Government. This denies banks the opportunity of playing thier role in stimulation of economic growth. Why are we letting a psychologist run the economic engine. 2.69 million is pocket change and nothing to shout about. If that is the best we can do that’s sad. Example we spend tons on meat imports, this message there is a market. Instead of government, this project should have been financed privately with reasonable interest rate. It will make money so bank investment secure. I understand with profits of 2.69 million there is not much large projects that can be financed but you have to start somewhere. This is one of our largest financial institutions and for a population of 69 k people 2.69 million is nothing. National Bank lost 4.4 million. The country on financial egg shell.
In 44 years bank has not past 3 million in profits.. That is not growth. It is reflection on country. It is called the Agricultural Industrial, Development Bank and over the years it’s main source of profits were high crippling interest rates student loans. Nothing wrong with giving student loans, but those interest rates Lord. There is hardly any stock offering in the country, manufacturing dead, instead the banks focus on those local potential thier board members taking psychology trip to China in some B’s schemes. Financial growth cannot be fueled by politicians with self motivated interest. All this people need to get thier act together.
The only disagreement I have with your entire post is “why are we letting a psychologist run the economic engine.”
He’s not a psychologist Sir. He was a student of psychology.
CONGRATULATIONS to Mr Julius Corbett for a job well done. You did it at NBD and now again at AID bank. A true and highly esteemed son of the soil. They may UNJUSTLY victimize you but NONE of them can fill your shoes. Well done sir.
My sentiments exactly. Where is the justice. If a man does his job well and makes the bank a profit, why does his job security have to depend on his political affiliations.
This is positive