Managing Director’s Discussion & Analysis Cont’d

increase in total interest income moving from $50.8 million to $54.4 million; year on year, this represents an increase of $3.6 million or 7.2%.

Interest income on loans and advances increased marginally over the previous financial year. This increase was consistent with the Group’s continued efforts to rehabilitate the portion of the loans and advances portfolio that was negatively impacted by the COVID-19 pandemic.

During the financial year, and coming out from one of the most consequential periods in modern history, the Group continued its efforts to reprice its funding instruments in line with market rates. As such, there was a reduction in total interest expenses of $1.0 million or 6.2%.

As business and consumer sentiments improved globally, the local economy experienced its highest-level growth in almost three years. The increased level of economic activity benefited the Group and resulted in non-interest income growing by $5.5 million or 32.2% over the previous financial year. Additionally, the Group continued with its strategy to digitalize its products offerings thereby providing further opportunities for growth in non- interest income categories.

Total expenses increased by $4.5 million or 11.0% over the comparative period and was mainly driven by several factors including the Group’s preparation for the acquisition of CIBC FCIB’s book of business. This resulted in an increase in professional fees of $0.542 million or 42.1% as several services had to be procured externally. Additionally, the global increase in fuel prices contributed to the increase of $0.239 million in utilities. The increase in interest levy expenses of $0.427 million or 6.6% was consistent with growth in the deposit portfolio, while the increase in credit card expenses of $1.4 million or 64.7% and commission and fees expense of $0.373 million or 18.7 % were volume related. The increase in bank and other licenses was related to the expansion of the Bank’s digital footprint as well as, costs associated with minimizing the risk of cyber and other security threats.

Sources Of Revenue