CAPITAL & Credit Merchant Bank (CCMB), together with its subsidiary Capital & Credit Securities Limited (CCSL), continues its record-breaking performance, generating $586.9 million in net profit in the first six months of 2004 surpassing by $121.63 million its earnings for all of last year. Capital & Credit posted consolidated after-tax profits of $465.27 for the full year ended December 31, 2003.
For the unaudited second quarter 2004 results the group achieved after-tax profit of $311.76 million, which pushed half-year net profit after tax to a landmark of over $500 million, a 221.78 per cent increase over the comparable six-month period in 2003.
Commenting on CCMB's 2004 half-year results, bank president and CEO Curtis Martin says the bank's excellent performance is a result of the diversification of income stream which continues to augment its strength and stability, while providing a solid foundation for growth, increased profitability and enhanced efficiency, with the latter continuing to better the benchmark within the industry. For the second quarter of 2004, efficiency measured as a percentage of non-interest expenses to net interest income and other revenues was achieved at 30.38 per cent and 28.88 per cent for the half year, compared to year-end 2003, which averaged approximately 45 per cent.
UTILISING MARKET CONDITIONS
The bank president emphasises that by utilising market conditions and ensuring timely execution under its business model, CCMB was able to accumulate $607.80 million in net interest income and $415.60 million in other revenues for the period. Together these amounted to $1.02 billion an increase of 129 per cent over the $446.68 million earned for the comparative six-month period in 2003.
Mr. Martin says the bank has pursued a deliberate strategy to build a solid loan portfolio. He notes that loans amounted to $2.43 billion as at June 30, 2004, representing an increase of 38.47 per cent over the $1.75 billion for the comparable period in 2003 for the comparable quarter. Correspond-ingly, he said, total assets under management grew by 25.52 per cent, to $52.24 billion.
Speaking on behalf of the Board of Directors, the bank's chairman, Ryland T. Campbell, emphasises that the business model being pursued buttressed by the commitment and competence of the staff, are largely responsible for this historic profit achievement. Commenting on the remarkable earnings per stock unit of $1.00 for the period, when compared to the 35 cents for the comparative half year, the board chairman emphasised that with the mantra of Capital & Credit being the building of shareholder value and the delivery superior customer service with professionalism and integrity, all stakeholders will continue to reap substantial benefits from the company's sustained profitability.
SUBSTANTIAL INCREASE
Mr. Campbell says that stockholders' equity has increased significantly by approximately 59 per cent to $2.95 billion as at June 30, 2004, compared to the $1.86 million for the corresponding period in 2003. This has been due largely to the substantial increase in the profit; the issuing of the 4.3 million shares under the ESOP; as well as the Fair Value Reserve for the period. He is confident that even with the payment of the seven and a half cents dividend to stockholders on record as at August 5, 2004, the profitability curve of the bank will be maintained to the end of the year.
Speaking to the organisation's future prospects, the chairman notes that the acquisition of the Jamaica Unit Trust for which the bank and its parent company won the bid, should be completed during the third quarter. He notes that CCMB continues to focus on achieving the goals and objectives of its strategic corporate plan, Caribvision 2010, and that the future looks bright.
Mr. Campbell states confidently that he sees the full year's profit reaching another milestone in merchant banking in Jamaica. After 10 years of operation, Capital & Credit continues to set new records in profit performance and financial achievements. In the first quarter of this year, the bank turned in its highest ever first-quarter profit performance; and now in its half-year 2004 review CCMB has surpassed its total profit earnings for last year. Among its other financial achievements, Capital & Credit became the first Jamaican merchant bank to record over $2 billion in Shareholders' Equity, and the first to be listed on the Jamaica and Trinidad Stock Exchanges.
