(Dominica Newsonline) For the second time in two years, the National Bank of Dominica (NBD) is recording a major loss.

The bank’s annual report shows for the year ended 2016, it recorded a loss of $EC4,663,163.

For the year ending 2015, the bank recorded loss of $4,357,450.

The bank is expected to hold its annual general meeting on March 23, 2017 where shareholders will be given the bitter pill to swallow.

In his report to shareholders, chairman, Anthony John, said two factors negatively impacted the bank’s earning.

“First, we recorded impairment charges of $7.7-million to address exposure to non-performing loans and advances. Second, we incurred a loss on our externally managed investment portfolio of $10.7-million. Net income suffered accordingly, resulted in a net loss of $4.6-million,” he said.

He said that the bank has had a strong performance in its loan portfolio amidst a “still timid market”.

“On the consumer side, we prioritized mortgage vehicles and education lending and saw a marked increase in education loan in particular,” John said.

Under the bank’s operating expenses, Director’s fees increased by EC$36,736 in the year under review.

In 2015 that figure was EC$218,616 and it moved to EC$255,352 in 2016.

Legal and other professional fees also skyrocketed from EC$694,363 in 2015 to EC$1,190,127 in 2016.

Meantime, Managing Director of the bank, Ellingworth Edwards said that in the coming year, the focus will be on “strengthening and building strategic relationships that will assist us in successfully growing our business and achieved our stated mission.”

“We will build on some of the ongoing initiatives, improve efficiencies and strengthen internal human resource capacities to deliver improved services,” Edwards said.

The bank has an audited asset base at the end of the financial year June 30, 2016 of EC$1.18 billion or US$437 million.