Feb 2010 Financial News

Drop in first quarter profits for FirstCaribbean group

Feb 26, 2010

FOR the three month period ended January 31st, 2010, which is representative of the first quarter of the 2009-2010 financial year for FirstCaribbean International Bank Limited, there was a drop in profits of approximately US$7 million when compared to the previous year.

According to the Group’s recently published Consolidated Financial Statements, income for the quarter amounted to $38.8 million, which is a drop of $13.1 million, or 25.2 per cent, when compared to the $51.9 million earned in the 2008-2009 financial year.

In the period under review however, income tax expense was only $1.8 million when compared to the $8.2 million paid by the Group in the previous year, which was said to be as a result of lower income earned in the taxable jurisdictions.

Therefore, once this is accounted for, net income for the quarter ended January 31st, 2010 was $36 975 000, a decline of $6 760 000, or 15.4 per cent, when matched up against the $43 735 000 earned a year earlier.

Chairman of the Group, Michael Mansoor, said in his review that the results of the company continue to be adversely impacted by the prevailing economic environment.
He stated that net interest income was down by $13 million primarily because of falling interest rates and declining loan volumes, while operating income grew by 52 per cent principally due to lower market to market losses than seen in the previous year, along with gains on the sale of investment securities and higher fee income.

Operating expenses and loan loss expenses were seen to be higher than in the comparable period a year earlier, by some $3 million and $11 million respectively.

For the period under review it was determined that earnings per common share attributable to the equity holders of the parent company were 2.4 cents, down from the 2.8 cents seen 12 months earlier.

In his review, Mansoor stated that the Bank is well capitalised, and argued that this positions them to take advantage of any opportunities that may present themselves in the future. (RH)


Source:
Barbados Advocate
Friday February 26, 2010

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=9186