Belize Bank Limited Reports Strong Financial Performance Amid Economic Recovery

Introduction

The Belize Bank Limited (BBL) has released its financial results for the six months ended September 2021, showing a solid performance amidst an economic recovery in Belize.

Key Highlights

• Total interest-earning assets grew by 5.4% annually, accounting for 88.2% of total assets.
• The loan portfolio has seen significant growth, with the top 10 commercial clients representing approximately 30.2% of the overall loan portfolio.
• Asset quality has improved, with a non-performing loans (NPL) to gross loans ratio declining to 4.6% from 10.5% in the corresponding period last year.

Investment Portfolio

• BBL’s investment portfolio, comprising mainly Treasury Notes and Bills issued by the Government of Belize, has seen growth, standing at BZ $261.6 million as of September 2021.

Risks and Challenges

• The bank is still exposed to risks associated with its high level of exposure to the heavily indebted Belize Government, with approximately 32% of total assets directly linked to the government.
• The COVID-19 pandemic had a significant impact on the Belizean economy in 2020, leading to a contraction of 14.1%.

Economic Outlook

• The International Monetary Fund (IMF) predicts an increase in real GDP of 8.5% and 5.4% in 2021 and 2022 respectively.

Conclusion

Overall, BBL’s financial performance is encouraging, reflecting the bank’s ability to navigate challenging economic conditions and capitalize on opportunities for growth. The bank’s ratings are tempered by its high exposure to Belize’s economic and financial system risk, but it remains a significant player in the country’s banking sector.