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Financial News

Sep 2016 Financial News

Deposit takers see double-digit asset growth

Sep 28, 2016

Based on data submitted to the Bank of Jamaica (BOJ) by supervised institutions up to 5 August 2016, the assets of the island’s six commercial banks stood at $1.014 trillion, up by 19 per cent from the $852.05 billion held in July 2015 last year.

The banks now hold 77 per cent of $1.31 trillion in assets held among deposit-taking institutions, which also comprise two merchant banks and three building societies.

The merchant banks had $33.9 billion in assets as at July, while the building societies held $263.9 billion in assets.

Asset growth for all was in the double digits, with merchant banks growing by 21 per cent compared to a decline of nine per cent last year. Building societies grew by 12.2 per cent compared to asset growth of 5.4 per cent in 2015.

For the commercial banks the 19 per cent improvement in July compared to 5.1 per cent for the similar period in 2015.

For commercial banks deposits grew from $543.03 billion last year to $642.13 billion in July. Total loans for the banks climbed to $468 billion this year, up from $386 billion in 2015.

Among all supervised institutions, deposits grew from $509.03 billion in 2015 to $610.33 billion as at July.

The rate of deposit growth for merchant banks was 28.7 per cent, up from 11 per cent last year; while that for building societies was 14.1 per cent at July, up from 8.1 per cent.

Pre-tax profit margins for all sectors was 31 per cent compared to a margin of 23.4 per cent last year. Within this, commercial banks reflected a margin of 33.3 per cent for July, merchant banks 2.4 per cent and building societies 23 per cent.

Non-performing loans (NPLs) for all sectors as a percentage of total loans was 3.5 per cent, down from 4.4 per cent of assets last year.

For commercial banks the ratio was 3.5 per cent, while that for merchant banks was 0.9 per cent and building societies was 3.9 per cent.

Total NPLs were $21.59 billion of which commercial banks had $16.6 billion, merchant banks had $114 million and building societies had $4.87 billion in July.

 

Source:
Jamaica Observer
Wednesday September 28, 2016

http://www.jamaicaobserver.com/business/Deposit-takers-see-double-digit-asset-growth_75338