While profitability, measured both by return on assets and return on equity has declined somewhat since the international financial crisis, by and large, the regional banking industry is still very profitable by international standards. The Trinidad and Tobago banks more so. According to the data Barbadian banks have faced a sharp decline in profitability, as measured by “return” on equity.
A recent article in Latin American Markets Monitor predict “tough years ahead” for the banking system in Barbados given the rising level of non-performing loans and the expected weak economic recovery. I don’t subscribe to an overly pessimistic outlook for the banking system in Barbados. Though I agree that there could be challenging times ahead.