DEHRING BUNTING & Golding (DB&G) reported a 35.7 per cent increase in net after tax profit for the quarter ended September 30, relative to the previous September quarter.
The company earned $48.7 million in net profit for the quarter, the equivalent of 40 cents per share. In the September quarter last year, company earnings amounted to 29 cents per share.
But in the first quarter of the year DB&G earnings were even higher, at 44 cents per share, or $54.4 million in net after tax profit.
"This quarter proved to be challenging, primarily due to the uncertainty that preceded Jamaica's 14th general election held October 16, 2002," board chairman Peter Bunting said in his statement accompanying the unaudited September results. "The ensuing volatility in the foreign exchange markets resulted in a steep interest rate hike by the central bank in order to restore market stability."
This action by the central bank appears to have achieved its objective and the market is currently moving back into equilibrium, "albeit at substantially higher interest rates," Mr. Bunting stated. "We hope that these rates will be adjusted downward as quickly as possible."
There was a slight $1.7 million increase in gross operating revenue from $968.3 million in the first quarter to $970.1 million in the September quarter.
But interest expenses increased even more. Interest expenses shot up $261 million to $815.4 million in the September quarter over the $554.4 million earned in the June quarter.
The group managed to slash operating expenses by $12.3 million to $106 million in the September quarter over the June quarter.
"We will continue to navigate this turbulent environment, relying on sound financial analyses as our compass, which should result in continued strong financial performance for all our stakeholders," Mr. Bunting stated.
There was a 24 per cent increase in net interest revenue to $120.5 million for the six-month period ended September 30, Mr. Bunting stated. Total funds under management, including Trust assets managed on behalf of clients, continued its upward trend, increasing by more than 32 per cent over the past year, to stand at $19.8 billion, and shareholder equity rose by 40 per cent to $607 million as at September 30, 2002.
Dehring Bunting & Golding signed an agreement with Issa Financial Services Limited (IFSL), the owner of Issa Trust & Merchant Bank Limited (Issa Trust), to acquire the share capital of Issa Trust, Mr. Bunting stated. The transaction is subject to regulatory approval from the Bank of Jamaica and Financial Services Commission.
He said all requisite applications have been submitted and the company expects to receive a definitive response from the relevant authorities within the next quarter ended December 31.
