Aug 2010 Financial News

Capital & Credit sees marginal increase in profits for half-year period

Aug 13, 2010

The Capital & Credit Financial Group (CCFG) has recorded a three per cent increase in net profit after tax for the six-month period ending June 30, 2010. This represents a total of J$144.97 million, up from J$141.24 million achieved for the similar period last year.

In his statement to shareholders, CCFG's chairman & group president, Ryland T. Campbell notes that the group achieved this small profit, even in face of the many challenges now affecting the local economy and banking sector. However, for the second quarter ending June 30, 2010, the Group recorded a net profit after tax of J$57.83 million, a slight reduction, when compared to the J$61.53 million recorded for the same period last year.

There were other positive performance indicators as the chairman pointed to the group's growth in Securities Trading, advancing from a negative J$67.87 million for 2009, to a positive J$49.87 million for the Six-month period in 2010. This represents an increase of 173.48 per cent. Additionally, the Group recorded marginal growth in its Net Interest Income (NII) of J$624.70 million compared to J$623.15 million, recorded last year.

Deputy Group President, Banking and Investment Services & CEO of Capital & Credit Merchant Bank, (CCMB), Curtis Martin, in commenting on the banking operations for the six-month period, highlighted the fact that the Banking Group also recorded a six per cent increase in its core business income line, Net Interest Income (NII), which advanced to J$641.16 million compared to the J$606.56 million recorded last year.

The CCMB CEO notes that "as a result of the Bank's decision to reduce Loan Interest Rates for the primary benefit of its clients, Loan Interest Income fell in the Second Quarter to J$254.14 million, down from the $363.93 million reported for 2009." Despite this, Mr. Martin says that the Bank has continued on its path of growth and maintains a high-level of financial stability." He notes further that "CCMB will capitalise on other opportunities to grow its Loan Portfolio as well as other Fee-income generating activities and will proactively develop new products and services in line with consumer's changing needs.

Of note is the Capital & Credit Financial Group's achievement in the area of Cost Containment, which continues to be a key initiative for the Overall CCFG as well as the Merchant Bank and its subsidiaries. Staff Costa and Other Operating Expenses, declined by 14.61 per cent and 27.44 per cent respectively. Additionally, the Group's Non-Interest Expense declined by 15.69 per cent for the period under review.

In closing, Chairman Campbell notes that "in light of the activities that have signalled the local economic recovery, such as the successful implementation of the Jamaica Debt Exchange (JDX) programme, the downward trend of the Inflation Rate and the successive upgrades of Jamaica's Country ratings, the Capital & Credit Financial Group has managed to sustain a solid financial position in the Market. He also attributes the Company's growth to proactive measures that have included re-assessing and realigning its business model in order to minimise any negative impact from JDX and revaluation of the Jamaican Dollar, as it moves decisively to improve its performance and reposition itself to achieve optimal business growth.


Source:
Friday August 13, 2010
Jamaica Observer

http://www.jamaicaobserver.com/business/Capital-Credit-sees-marginal-increase-in-profits-for-half-year-period-_7876420