CAPITAL & Credit Merchant Bank (CCMB) has recorded its highest ever first quarter profit performance for the period ended March 31, 2004, with consolidated New Profit After Tax of $275.15 million. This represents a 312 per cent increase over the comparable period 2003.
In its first quarterly unaudited consolidated results for the financial year 2004, the bank also reports other performance highlights over the period, including Earnings of 47 cents per stock unit, representing a 252 per cent increase; a Return on Equity of just over 45 per cent; and an Efficiency ratio of 27 per cent.
Commenting on CCMB's 2004 first quarter performance, bank president and CEO, Curtis Martin, notes that Assets Under Management moved from $32.8 billion to $49.6 billion as at March 31, 2004, while the Net Interest Income generated totalled $266.5 million for the first quarter 2004 representing an increase of just over 113.6 per cent over the comparative first quarter last year.
These achievements, he notes, have been against the background of prudent management, resource diversification and more favourable market conditions, with gradually declining interest rates during the first quarter of 2004.
As far as other Operating Income is concerned, Mr. Martin says that Capital & Credit continues its drive to diversify its income stream and in this regard, the bank's wholly-owned subsidiary, Capital & Credit Securities Ltd (CCSL), contributed significantly to the increase in Other Income through its stockbroking activities. Other Income amounted to just over $202 million for this first quarter 2004 an increase of 211 per cent over the similar period last year.
Chairman, Mr. Ryland T. Campbell, notes that the building of shareholder value is the centrepiece of the organisation's strategy of building of shareholder value. This, he notes, has been underscored by the increase in the bank's Capital Base through growth in earnings of just over $275 million and a $392.6 million increase in the value of securities available for sale between January and March 2004; moving from a base of over $1 billion at March 2003, to approximately $2.1 billion at December 2003; to $2.7 billion at March 31, 2004. The result has been an increase in the capital base of $1.42 billion over the 12-month period ending March 2004.
Mr. Campbell notes further that Loans have been another area of expansion for the bank amounting to $1.98 billion as at March 31, 2004, an increase of approximately 27 per cent over $1.57 billion for the comparable end of quarter last year. He notes further that investment in securities and securities purchased under re-sale agreements have been the primary area of growth and activity for the companies with the combined value growing from approximately $29.6 billion at March 31, last year, to just over $37 billion by December 31, 2003 and further increasing to just over $44.3 billion as at March 31, 2004.
Speaking on behalf of the Board, the CCMB Chairman said the Directors are very pleased with the Bank's consistent performance and outstanding first quarter results. He emphasised that there is a transformation programme being pursued to achieve continued refinement of the Organisation's business model; a strengthening of its overall governance in risk management; diversification of its product range to meet customer demands; as well as optimising on opportunities for further growth and profitability. The Chairman further noted that CCMB is well on target for achieving outstanding results for 2004.
Capital & Credit celebrates its 10th anniversary this year. Since it was founded on January 24, 1994, the Bank has consistently recorded impressive profits and financial achievements being the first Jamaican merchant bank to record over $2 billion in Shareholders' Equity and the first to be listed on the Jamaican and Trinidad & Tobago Stock exchanges.
