Bank stability at 7-year high on $400m profits

improve underpinned by the ongoing strengthening in the domestic economy. The index increased to 2.01 from 1.53 in 2021, signalling that the sector remained sound.

“Specifically, the normalised profitability indicator rose to 1.04, higher than the 0.61 firming in the previous year, reflective of an increase in profitability, as returns on both assets and equity sustained its positive trend in 2022, extending the gains in the preceding year. In addition, the liquidity indicator firmed to 0.53 from 0.46 in 2021, as banking sector liquidity maintained robust levels.

The normalized asset quality indicator also moved higher to 0.47 from 0.42 in the prior year.”

Commercial bank profitability was boosted by the Bahamian economy’s post-COVID re-opening and recovery