Annual Report 2015
35
Net Interest Income
Net interest income for the Group increased by 10.6% or $235
million in 2015, led by Trinidad and Tobago where income in this
area grew by $116 million or 7.4%, mainly due to the $3.1 billion
increase in the loans and advances portfolio. The $66 million or
21.9% increase in net interest income in Barbados resulted from
increased interest income from higher interest rates on loans, as
well as declines in interest expense due to better interest rate
management and liberation of the interest rate setting mechanism
for deposits.
The US economy continues to show signs of strengthening,
leading to a worldwide expectation of increased interest rates
and further relaxation of international accommodative monetary
policies. Against this backdrop, the Group will continue to manage
its interest rate spreads across the region, to balance our liquidity,
currency and credit risk exposure with the demands of increasing
competition and the needs of our customers.
OperatingExpenses
All figures are in TT$ Millions
2015
2014
Change
% Change
Total operating expenses
2,156.0
2,065.6
90.4
4.4%
Less pension costs
(97.0)
(65.5)
(31.5)
-48.0%
Goodwill impairment expense
(31.5)
(185.0)
153.5
83.0%
Core operating expenses
2,027.5
1,815.1
212.4
11.7%
Trinidad and Tobago
1,496.7
1,518.1
(21.4)
-1.4%
Barbados
319.1
325.1
(6.0)
-1.8%
Guyana
133.1
122.7
10.4
8.4%
Cayman/Suriname/Eastern Caribbean
138.6
110.7
27.9
25.2%
Ghana
79.9
–
79.9
0.0%
Inter-company eliminations
(11.5)
(11.1)
(0.4)
-3.6%
Total
2,156.0
2,065.6
90.4
4.4%
Operatingexpenses
Core operating expenses increased by 11.7% or $212.4 million,
of which staff costs contributed a $99 million or 14% increase
across the Group as union negotiations were settled in Trinidad
and Tobago and Barbados. Notwithstanding the normal inflationary
increases in the general operating and regulatory costs across
the Group, the balance of the increase was due to the first-time
inclusion of $79.9 million in operating costs from Ghana.
