By Al Edwards, Business Co-ordinator CAPITAL & CREDIT Merchant Bank has recorded a 70.9 per cent increase in profit after tax for the third quarter of 2002.
Consolidated, unaudited results for the period reflect an after tax profit of approximately $212.0 million, an increase of $88.0 million over the $124.0 million for the corresponding period in 2001.
The Bank's profit before tax stands at approximately $282.8 million for the nine month period ended September 30, 2002, a 51.6 per cent increase over the corresponding period in 2001.
As reported in the previous quarter, the Bank continues to pursue growth in its balance sheet core banking operations. These assets have grown by $3.5 billion or 25.6 per cent over the third quarter, bringing the total assets in the Bank to $17.0 billion. Total assets under management have also increased to just under $25.5 billion, up from $15.3 billion as at December 31, 2001.
The Bank's subsidiary, Capital & Credit Securities Limited (CCSL) which was officially re-launched in July of this year, now has an asset base of $3.3 billion. CCSL has made steady progress in extending its main areas of business, including Stock Brokerage Services, Pension Funds Management and Securities Trading and expects a solid future in growth and profitability.
CCMB President, Curtis Martin notes that the Bank's effort to contain costs has supplemented the growth in Gross Revenues and Assets Under Management. The results show operating expenses and provisions increasing by only 19.3 per cent to approximately $218.7 million compared to $183.3 million for the corresponding period in 2001, thereby providing an increased level of contribution to profitability.
Speaking to Wednesday Business Mr. Martin said: "This surge in profits is largely attributed to the performance of our banking business in particular our Treasury management business where there was a growth in assets. Added to that we managed to contain costs and make significant efficiencies. If you look at our results you will see non interest expenses was well below net interest income."
Group president and chairman, Ryland T. Campbell, attributes the Bank's ability to maintain an internationally competitive efficiency ratio on the strategic use of technology and continued emphasis on staff training.
Mr. Campbell stated further that the Board of Directors is satisfied that the Bank's profitability and growth are on target for the next quarter and reiterated that they are putting the Bank in readiness for a proposed Initial Public Offering by April of 2003.
It appears that Capital & Credit will be targeting institutional investors as it seeks to establish a publicly listed company that is adequately capitalised and enjoys a favourable reputation among the sector. Mr. Campbell said:" As far as going public is concerned we are now looking at the first quarter of 2003 and to this end we have already formed a due diligence committee. Mayberry Investments will be our lead broker."
