The Fiji Development Bank’s annual report for the financial year ending 30 June, 2012 was tabled before cabinet by Prime Minister and Minister for Finance, Commodore Voreqe Bainimarama on 18 June, 2013.
In a letter to Cdre. Bainimarama, bank chairman Mr. Robert Lyon announced an operating profit of $2.86MM for the 2012 financial year.
“Despite the slow growth in new business and stiff competition from other banks and financial institutions, the bank recorded an increase of $0.41MM compared to the 2011 financial year,” Mr. Lyon said.
He noted that this was made possible through prudent portfolio management and stringent cost control measures.
Overall, the bank’s gross loan portfolio declined by 3.7% to $324.51MM as a result of early exit of several large accounts and charge off of non-performing accounts.
Other highlights of 2012 financial year over 2011, include the following:
1. The net profit represented a return on average assets (ROA) of 0.9% – up from 0.7%;
2. The return on average equity (ROE) increased by 0.3% to 2.5%;
3. Interest income decreased by 18.2% to $28.40MM. This came in the wake of a consistent drop in interest rates as a direct result of high liquidity in the market. The falling interest rates also prompted early settlement for several large accounts;
4. The bank’s total assets amounted to $332.63MM, a decrease of 3.6%;
5. Total loans and advances decreased by 3.64% to $324.51MM (before provisioning). This was due to low disbursements and charge offs during the year; and
6. The bank’s total liabilities decreased by 6.6% to $216.54MM. This was due mainly to the redemption of high cost bonds valued at $85.10MM, low borrowings and low disbursements.
“The board wishes to express its sincere gratitude to the executive management and staff for their effort and commitment throughout the financial year. We look forward to the continued support and contribution of government in our endeavour to provide affordable developmental financing for the economic and social development of Fiji,” Mr. Lyon said.
FDB