May 2013 Financial News

Sagicor Investments takes $422m loss from NDX

May 08, 2013

Sagicor Investments Jamaica Limited (SIJL) has taken a $422.5-million loss from the National Debt Exchange (NDX) and as a consequence saw its net profits plummeted to $7 million for the first quarter ended March 2013.

Profits went down from $458.5 million for the corresponding period in 2012.

The company reported that during the quarter it also saw a reduction in total net interest income from $1.53 billion to $1.52 billion. There was a decline in interest income for both loans and securities.

With an increase in interest expense, net interest income was $717 million compared to $752 million for the same period the prior year. At the same time the company also reported that the value of income earning assets fell to $76.9 billion compared to $77.5 billion in 2012.

Sagicor Investments' net interest margin also contracted to 3.73 per cent versus 3.88 per cent in 2012 as a result of the NDX.

All categories of non-interest income, which comprise fees and commission income, net trading gains and other operating income reflected reduction. With the loss from the NDX, total non-interest income was reduced to $249 million for the three months to March, compared to $337 million the prior year.

However, improved results were seen in asset management fees, credit fees, service fees, trust services and foreign exchange trading and translation gains, while fixed income trading, equity trading and stock brokerage activities recorded lower revenues for the period.

Non-interest expense increased by eight per cent to $494 million compared to $457 million for the prior year. SIJL also reported that depreciation and amortisation charges associated with branch relocations and technology improvements rose by $10 million.

The quarter financial results were also impacted by an asset tax charge of $30 million.

SIJL's total assets were $88.6 billion, up $300 million since December 2012. Its securities portfolios also increased by two per cent to $72 billion, while its credit portfolio declined to $8.9 billion, from $9.3 billion at December 2012.

SIJL, a subsidiary of Sagicor Life Jamaica, last traded at $15.60 on the Jamaica Stock Exchange, with its ordinary shares valued at $8.6 billion.


Source:
sabrina.gordon@gleanerjm.com
Jamaica Gleaner
Wednesday May 8, 2013

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