THE commercial banking sector is reflecting an improvement in its financial base in a year-on-year comparison to September 30, 2002.
All but one of the six commercial banks are showing an increase in their capital base, for a net increase in assets of just under $24 billion to $265.2 billion across the sector.
CIBC, now FirstCaribbean following its merger with Barclays Plc, was the exception with its assets declining by $600 million to $16.06 billion.
The other five banks Bank of Nova Scotia (BNS), Citibank NA, First Global (which was formerly Trafalgar Commercial Bank), National Commercial Bank (NCB), and RBTT (formerly Union Bank of Jamaica) experienced growth in their total assets that ranged between $630 million and $14
billion.
The Bank of Jamaica reports the sector's rate of asset growth, net of contingent liabilities and provisions for losses, at 8.2 per cent; deposits at a rate of nine per cent; capital base 9.6 per cent; while loans grew a significant 56.6 per cent.
The sector's liquidity position worsened slightly, however, down 2.5 per cent to 41 per cent in assets to prescribed liabilities, and almost 10 per cent on two-year ago figures.
Its profitability levels, measured over the July to September quarter of 2002, saw a big increase in pre-tax margins from 9.3 per cent to 32.3 per cent; and return on assets for the period of 1.1 per cent, up from 0.3 per cent.
Over the current review period, BNS has seen the biggest move in assets, from $91 billion to $105 billion, but NCB comes out with the widest spread between its assets and liabilities of $11 billion, while BNS' stands at $9 billion.
First Global remains the smallest bank, but its growth has been the strongest over the past year almost doubling its total assets to $5 billion and expanding its capital base by 100 per cent, from $150 million to $303 million.
