FDB records $2.50m profit for 2011

Fiji’s Development Bank (FDB) has recorded a $2.50 million profit for 2011.

This was revealed in the bank’s annual report for the financial year which was presented by Prime Minister Commodore Frank Bainimarama to Cabinet last month.

FDB chairman Bob Lyon said this was an increase of $0.14 million (6.23 per cent) compared to the 2010 financial year.

“This was achieved through prudent portfolio management and stringent cost control measures,” said Lyon.

He said the bank’s gross portfolio declined by 20.08 percent to $349.93 million in the 2011 financial year due to early exit of a few large corporate accounts and bad loan write-offs.

The bank also noted a slow growth in new business.

In other developments during the year, the bank recorded an interest income increased by 14.37 per cent over 2010 due in most part to an improvement in the impaired assets ratio.

The bank’s additional revenue source which includes fees and other charges also recorded an increase of $5.14 million over 2010.

The increase in Value Added Tax (VAT) by 2.5 percent to 15 per cent in
2011 resulted in an increase in the bank’s operating expenses by 3.79 per cent.

By Ropate Valemei