Bank of Marshall Islands held its annual shareholders meeting in Majuro with board Chairman Grant Labaun and President Patrick Chen announcing the bank increased its profit by 13 percent in 2008 compared to 2007. Chen said 2008 “was our best year.”
“This bank is stronger than most American banks,” said bank board secretary Saane Aho, the administrator of the Marshall Islands Social Security System, which owns a large chunk of bank stock.
Bank officials provided shareholders with a Deloitte and Touche audit showing $3.4 million net income in 2008 compared to just over $3 million in 2007. The dividend paid this week is the same as last year.
“The book value of our stock has been increased from $90 to $100,” Chen said. Explaining Bank of Marshall Islands’ success in 2008 despite the poor global financial situation, Chen said the bank has no exposure in the sub-prime loan market because, “We don’t make sub-prime loans.”
Bank of Marshall Islands is one of two commercial banks operating in this western Pacific nation, and dominates the loan market in the country. Its success is tied closely to loans based on United States grants that employ about 2,000 government employees, multi-million U.S. rental payments to landowners at the Kwajalein missile testing range, and U.S. nuclear test compensation payments to islanders affected by 67 nuclear tests conducted at Bikini and Enewetak from 1946-1958.
While most U.S. banks are paying under 3 percent for time certificate of deposit, the Bank of Marshall Islands pays up to 6 percent on TCD investments.
