CBSI makes $84 million profit

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Governor of Central Bank of Solomon Islands Denton Rarawa.

BY EDDIE OSIFELO

Governor of Central Bank of Solomon Islands Denton Rarawa.

CENTRAL Bank of Solomon Islands (CBSI) has made an operating profit of $84 million last year from investment income and growth in other incomes.

Speaking at CBSI 2018 Annual Report in Honiara on Monday, Governor Denton Rarawa said this is more than double profit of $30 million in 2017.

He said the net assets position of the balance sheet also increased to $149 million at the end of 2018 up from $45 million in 2017.

“In terms of its investments, CBSI strategically invested portions of the foreign reserves in secure asset portfolios overseas to generate income and sustain the reserves.

“Improved financial market conditions and favourable deposit rates, particularly in the United States contributed to the surge in interest income to $86 million from $49 million in 2017,” he said.

The Bank had also strengthened its governance with the appointment of three new directors to take it to a full complement of nine board members.

The Bank total number of staff increased by four percent to 159 in 2018.

Rarawa said there were some important currency developments during the year.

He said in July, the Bank launched the commemorative $40 note and a coloured $2 coin to celebrate the country’s 40th Anniversary of Independence.

In August, a new $5 polymer note was endorsed.

Rarawa said the bank plans to progressively update its suit of notes as part of a currency reform process that started in 2010.

He said these are aimed in part, to enhance the security of the notes and to reflect changes in the economy.