Managing Director’s Discussion & Analysis

Investments

The Group’s investment portfolio grew by $20.2 million or 12.2%. Growth in the portfolio was concentrated in instruments which are not susceptible to current market volatility. Despite the unrealized losses of $5.6 million, the Group remains optimistic regarding the medium to long-term recovery prospects in the financial markets and will continue to manage the portfolio proactively to avert further losses while improving the overall returns.

Due To Customers

Due To Customers

The total deposits of $1.11 billion grew by 2.9% over the previous financial year. Growth in the portfolio was mainly concentrated in the category of demand deposits. We continued to employ strategies to effectively manage the Group’s cost of funds and as such, was able to reduce total interest expenses.

Conclusion

During the past year, we focused on a number of key activities surrounding the plans for the acquisition of the local operations of CIBC FCIB. It was imperative that we further enhance our mobile banking platform with a view to improving the user functionalities for our customers.

Beyond this, we continued to accelerate our digital transformation initiatives across other service platforms including the redevelopment of the website and completing the testing of new digital products to be introduced in 2023.

The profitability of the Group for the year under review reflects a positive trend after the impact of the challenges faced in the years prior. In the immediate period ahead, we plan to continue the targeted investments geared towards deepening the Group’s risk management capabilities; enhancing our human capital and, by extension, improving our core competencies; diversifying our product and service offerings and continuously improving the service we provide to our customers.

We are happy to announce that on March 24, 2023, the Group successfully acquired the banking operations of CIBC FCIB in St. Vincent and the Grenadines. This acquisition is expected to have a material impact on the Group’s asset base with a projected growth of approximately $596 million or 45.0%.

Acknowledgements

The activities to organize, plan and execute the transaction commenced in January 2022 and are still ongoing post-closing. For this, we want to recognize and thank all those who contributed to this success, our consultants, suppliers and service providers; the Government of St. Vincent and the Grenadines and the team at the Eastern Caribbean Central Bank; the Board, management and staff at both BOSVG and CIBC FCIB. Very importantly, we want to recognize and thank all of our customers, existing and new, for your continued support, guidance and encouragement as we transition into this next phase of moving our Group and our communities forward.

I wish to extend high commendations and heartfelt thanks to our management team and all the other support staff that worked throughout the year, daily, on the plans for the integration of the CIBC FCIB operations. My profound appreciation is extended to the Deputy Managing Director, Bennie Stapleton, who along with the senior leaders on the various workstreams, worked tirelessly to ensure the safe and efficient migration of the data and subsequent transition of the overall operations.

We approach the 2023 financial year with renewed optimism and confidence. We will be guided by the principles of quality customer service, dedication to our people and communities and building a sound financial institution. To our shareholders, Board of Directors, staff and customers, a heartfelt thank you for your support in 2022.