9 SEPARATE FINANCIAL STATEMENTS 2024 Financial Sector Developments • The financial system in Barbados continues to remain resilient and stable: o The Non-performing loans ratio showed a notable decline as reported during January to March 2024 indicating higher asset quality on the balance sheets of deposit-taking financial institutions. o Capital adequacy remained robust, healthy and above regulatory limits, with high liquidity due to an increase in the deposit base of Deposittaking Institutions. • Total deposits grew during the review period at marginally higher levels than FY 2023. Deposits grew by 1.6 percent driven by a build-up in local and foreign current deposits. Liquidity, which is also measured by the liquid assets ratio, remained high within the banking sector at 13.4 percent albeit lower in the finance companies due to a reduction in currency and deposits. • Overall, credit and loans in the non-financial private sector grew marginally over the threemonth review period. The increases in lending to households, hotels & restaurants, and the real estate sector, more than outstripped the significant repayments in the construction, hotel and restaurants and distribution sectors. New lending to individuals, particularly for mortgages, combined with slower repayments, drove the overall increase in loan growth. Barbados’ Economic Forecast Barbados’ economy is expected to remain on its growth path during 2024 and is projected to grow at 3.9 percent with tourism and private sector investments being key drivers of economic activity and expansion. It was reported that domestic inflation is expected to slow down further over the medium term in line with falling international commodity prices. The forecast for the 12-month moving average is expected to range between 3.5 and 4.0 percent by the end of 2024. This would, however, be dependent on the rise in inflationary pressures from domestic demand for discretionary goods and services as the economy expands. 8.3 -30 -20 0 -10 10 20 30 40 BDS $M Ch 8,574.6 8,598.8 7,400 7,600 7,800 8,000 8,200 8,400 8,600 8,800 BDS $M Outstanding Credit to the NFPS NPLs of Commercial Banks and Finance Companies Source: Central Bank of Barbados Source: Cen 5.0 5.1 12.2 0 11.0 2 4 6 8 10 12 14 16 18 0 100 200 300 400 500 600 700 800 900 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 % Mar-24 BDS $M 0 100 200 300 400 500 600 700 800 Mar-17 Total NPLs NPL Ratio - Banks (RHS) NPL Ratio - Finance Companies (RHS) Jun-17 Sep-17 Dec-17 Mar-18 BDS $M Figure 16: Liquid Asset Ratio 0 5 10 15 20 25 30 35 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Commercial Banks % Finance Changes in Domestic-Currency Deposits January - March Cha 400 BDS $M Households Government Private Sector Firms Other 200 BDS $M Hous Gove Source: Central B -20.6 -30 -20 -10 7,400 7,600 7,800 8,000 NPLs by Sector NPLs of Commercial Banks and Finance Companies Source: Central Bank of Barbados Source: Central Bank of Barbados 5.0 5.1 12.2 0 11.0 2 4 6 8 10 12 14 16 18 0 100 200 300 400 500 600 700 800 900 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 % Mar-24 BDS $M 0 100 200 300 400 500 600 700 800 Mar-17 Total NPLs NPL Ratio - Banks (RHS) NPL Ratio - Finance Companies (RHS) Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 BDS $M Other Distribution Construction Hotels and Restaurants Real Estate & Other Professional Services Individuals Figure 16: Liquid Asset Ratio 30.9 33.3 13.8 0 13.4 5 10 15 20 25 30 35 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Commercial Banks % Finance Companies Changes in Domestic-Currency Deposits January - March Changes in Foreign-Currency Deposits January - March Sources: Central Bank of Barbados and Financial Services Commission Sources: Central Bank of Barbados and Financial Services Commission -100 0 -50 50 100 150 200 250 300 350 400 2019 2020 2021 2022 2023 2024 BDS $M Households Government -50 0 50 100 Private Sector Firms Other 150 200 2019 2020 2021 2022 2023 2024 BDS $M Households Government Private Sector Firms Other Source: Central Bank of Barbados 8.3 -8.0 -20.6 -0.5 29.1 18.5 -2.6 24.1 -30 -20 0 -10 10 20 30 40 BDS $M Changes in Loan Balances of the NFPS March 2024 vs December 2023 8,574.6 8,598.8 7,400 7,600 7,800 8,000 8,200 8,400 8,600 8,800 BDS $M Outstanding Credit to the NFPS NPLs by Sector NPLs of Commercial Banks and Finance Companies Total NPLs NPL Ratio - Banks (RHS) Other Figure 16: Liquid Asset Ratio 30.9 33.3 13.8 0 13.4 5 10 15 20 25 30 35 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Commercial Banks % Finance Companies Source: Central Bank of Barbados 8.3 -8.0 -20.6 -0.5 29.1 18.5 -2.6 24.1 -30 -20 0 -10 10 20 30 40 BDS $M Changes in Loan Balances of the NFPS March 2024 vs December 2023 8,574.6 8,598.8 7,400 7,600 7,800 8,000 8,200 8,400 8,600 8,800 BDS $M Outstanding Credit to the NFPS NPLs by Sector NPLs of Commercial Banks and Finance Companies Source: Central Bank of Barbados Source: Central Bank of Barbados 5.0 5.1 12.2 0 11.0 2 4 6 8 10 12 14 16 18 0 100 200 300 400 500 600 700 800 900 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 % Mar-24 BDS $M 0 100 200 300 400 500 600 700 800 Mar-17 Total NPLs NPL Ratio - Banks (RHS) NPL Ratio - Finance Companies (RHS) Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 BDS $M Other Distribution Construction Hotels and Rest urants Real Estate & Other Professional Services Individuals Figure 16: Liquid Asset Ratio 30.9 33.3 13.8 0 13.4 5 10 15 20 25 30 35 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Commercial Banks % Finance Companies Changes in Domestic-Currency Deposits January - March Changes in Foreign-Currency Deposits January - March Sources: Central Bank of Barbados and Financial Services Commission Sources: Central Bank of Barbados and Financial Services Commission -100 0 -50 50 100 150 200 250 300 350 400 2019 2020 2021 2022 2023 2024 BDS $M Households Government -50 0 50 100 Private Sector Firms Other 150 200 2019 2020 2021 2022 2023 2024 BDS $M Households Government Private Sector Firms Other Source: Central Bank of Barbados 8.3 -8.0 -20.6 -0.5 29.1 18.5 -2.6 24.1 -30 -20 0 -10 10 20 30 40 BDS $M Changes in Loan Balances of the NFPS March 2024 vs December 2023 8,574.6 8,598.8 7,400 7,600 7,800 8,000 8,200 8,400 8,600 8,800 BDS $M Outstanding Credit to the NFPS NPLs by Sector NPLs of Commercial Banks and Finance Companies 5.0 5.1 12.2 11.0 6 8 10 12 14 16 18 300 400 500 600 700 800 900 % BDS $M 300 400 500 600 700 800 Total NPLs NPL Ratio - Banks (RHS) NPL Ratio - Finance Companies (RHS) BDS $M Other Distribution Construction Hotels and Restaurants Re l Estate & Other Professional Services Individuals Figure 16: Liquid Asset Ratio 30.9 33.3 13.8 0 13.4 5 10 15 20 25 30 35 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Commercial Banks % Finance Companies Source: Central Bank of Barbados
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