DSB also reports financial loss

The Hakrinbank is not the only local bank that has reported a financial loss because De Surinaamsche Bank (DSB) recently published its biannual figures which do not look good. The Hakrinbank had to settle for less profit while the DSB Bank closed its first half of 2016 with a huge loss. Due to the negative result, it has been proposed that the bank should not pay interim dividend. The DSB Bank reportedly attributed the loss to an increase in credit provisions. In the recently published report the bank executives indicate that the total balance jumped from SRD 4.898 billion to SRD 7.364 billion. That is a 50% increase when compared to the figures from December 2015. The increase could partially be the result of the increase in exchange rates for the US dollar and the euro. There has been an increase in credit provisions to the government as well as private individuals and companies. The bank’s operating expenses also jumped from SRD 62.22 million to SRD 80.96 million. The biggest portion of the increase is the result of compensation for the bank employees in response to the drop in purchasing power. In the first half of 2015 personnel expenses were SRD 39.99 million. But in the first six months of 2016 they were SRD 50.08 million. Other expenses have reportedly been ‘expressed’ in foreign currency. The bank executives also mentioned in the report that the economic crisis drastically intensified in 2016 and pointed out that policy makers were not well-prepared to curb the effects of the depression. Inflation drastically increased in the first six months of 2016. The 12 month inflation was around 63% on June 30, 2016 while it was about 5% on June 30, 2015.