By RACHNA LAL
The Fiji Development Bank recorded an operating profit of $2.86 million for the 2012 financial year ending June 30, 2012, up $0.41 million from 2011.
Bank chairman, Robert Lyon, said the increase was despite the slow growth in new business and stiff competition from other banks and financial institutions.
Fiji Development Bank’s annual report for the financial year ending June 30, 2012, was tabled before Cabinet by Prime Minister Commodore Voreqe Bainimarama on June 18, 2013.
In a letter to Commodore Voreqe Bainimarama, Mr Lyon noted the profit was made possible through prudent portfolio management and stringent cost control measures.
Overall, the bank’s gross loan portfolio declined by 3.7 per cent to $324.51 million as a result of early exit of several large accounts and charge off of non-performing accounts.
“The board wishes to express its sincere gratitude to the executive management and staff for their effort and commitment throughout the financial year,” Mr Lyon said.
$2.86m
Operating profit
Highlights: Financial Year 2012 over 2011
1. Net profit represented a return on average assets of 0.9 per cent – up from 0.7 per cent
2. Return on average equity increased by 0.3 per cent to 2.5 per cent
3. Interest income decreased by 18.2 per cent to $28.4 million. This came in the wake of a consistent drop in interest rates as a result of high liquidity in the market. Falling interest rates also prompted early settlement for several large accounts;
4. Total assets amounted to $332.63 million, a decrease of 3.6 per cent
5. Total loans and advances decreased by 3.64 per cent to $324.51 million (before provisioning).
6. Total liabilities decreased by 6.6 per cent to $216.54 million mainly because of the redemption of high cost bonds valued at $85.1 million, low borrowings and low disbursements.