Notwithstanding the difficult local, regional and international environment, the Grenada Development Bank has reported that it made a net profit of EC$135,000 in 2012.
This profit follows two years of loss, said Chairman Michael Archibald in his report which was tabled during a recent sitting of the House of Representatives. “It is important to note however, that the loss in the previous years was due mainly to accounting for impairment of investment losses,” said the Chairman in his report which explained that compared to a net loss of EC$1.39 million in 2011, operating profits reduced by 71% from EC$471,000 in 2011 to EC$135,000 in 2012.
Archibald in his report said, ”This was due mainly to a 61% decline in bad debt recoveries from EC$532,000 in 2011 to EC$205,000 in 2012 since the Bank’s net interest income only declined by a mere 1% from EC$1.61 million in 2011 to EC$1.59 million and total expenditure reduced by 3.67% from EC$1.81 million in 2011 and EC$1.74 million in 2012.’
With the aim to better fulfil its mandate, in 2012 Bank according to the report commenced the implementation of its five year strategic plan which is geared to transforming the Bank by 2016 into the premier provider of development financing.
In accordance with the plan, the Bank formulated six new policies, as well as reviewed and amended existing ones so as to create better strategic links between the Bank’s new vision and its day to day operation.
The financial institution also proceeded to commence the implementation of its Human Resource Plan and Customer Service Plan and has done so with some level of success, said that report which explained that the Marketing plan was hindered by the Bank’s inability to obtain new lines of credit.
Archibald and his team is expecting that 2013 the Bank will experience marginal growth as it will continue to concentrate on obtaining new lines of credit or other forms of funding so as to play a more meaningful role in the financing of the critical sectors of the economy in an attempt to boost economic activities.
by Linda Straker