- RUDOLPH BROWN/CHIEF PHOTOGRAPHER
Chairman, group president and CEO of the Capital and Credit Financial Group (CCFG), Ryland T. Campbell (right), speaking at its annual general meeting at the Knutsford Court All-suite Hotel, New Kingston, earlier this year. Beside him is CCFG's senior vice-president and chief financial officer, Robert Clarke.
CAPITAL & Credit Merchant Bank Limited (CCMB), has maintained its unbroken record of significant profits, with another commanding financial performance for its second quarter to June 30, 2005.
The group's interim consoli-dated results reveal that its net profit for the six months ending on June 30, 2005, was approximately $761 million, or 88 per cent of the total profit recorded for the audited 2004 results. Specifically, for the second quarter the group recorded net profit of $396 million, a 27 per cent increase over the comparative period in 2004.
Commenting on the results, deputy group president and president of and CEO of CCMB, Curtis Martin, notes that in the context of low to declining interest rates in the local marketplace, the Group's strategy of diversifying its income streams has resulted in gross operating revenue remaining relatively stable at $1.43 billion for the second quarter.
MAIN CONTRIBUTOR
The main contributor to Other Revenues for the second quarter, Mr. Martin says, was Net Gains on Securities Trading, which stood at $400 million, a 122 per cent increase over the $180 million made in the comparative period last year. This more than offset Net Interest Income, which declined by almost 27 per cent over the second quarter of 2004 to $250 million.
Gross Revenue, which includes Other Revenues, grew by 97 per cent over the comparative period to $420 million. He points out further that net interest income and other revenues, amounted to $670 million, a 21 per cent increase over the $555 million realised for the second quarter of 2004.
The bank's president says also that the group's efficiency ratio, which tracks non-interest expenses as a percentage of revenues, continues to be excellent. For the quarter just ended, he notes, CCMB achieved an efficiency ratio of approximately 33 per cent, while for financial year 2004, it was recorded at 40.5 per cent.
Assets continue to grow, with Total Assets at June 30 amounting to $54.5 billion, a six per cent increase over the $51.5 billion recorded in the comparative quarter.
With regard to the group's capital base, total shareholders' equity grew to $3.96 billion, a 36 per cent gain since the end of the 2004 financial year.
PERFORMANCE
Commenting on the bank's performance, chairman of the bank Ryland T. Campbell, noted that its earnings per share (EPS) continue to grow, with a 28 per cent increase to 67 cents for the second quarter, over the 53 cents earned in second quarter 2004.
This growth, the chairman noted, is based on the net profit attributable to the bank's shareholders. Mr. Campbell says these positive developments have led to the bank's directors approving the payment of an interim dividend of 10 cents per stock unit, which will be issued to stockholders on record as at August 12, 2005, payable on August 26, 2005.
APPROPRIATE CONTEXT
This strong financial perfor-mance, coupled with the impending launch of new products and technological enhancements to service delivery, Mr. Campbell says, serve as an appropriate context to position the bank to pursue its targeted objectives for growth and business expansion in the Caribbean, including the upcoming Rights Issue.
Looking to the future, Mr. Campbell announced that the bank and its subsidiaries have undertaken a number of initiatives to re-structure its balance sheet and build on its fee-based income stream, resulting in more robust capital ratios, improved rates of return on assets and a more stable income stream.
At a recent, special board meeting, the directors of Capital & Credit Merchant Bank Limited approved a renounceable Rights Issue of one ordinary share for every 10 ordinary stock units. September 2 is the record date and the issue price is $20.50. The offer will open on September 26 and closes on October 14. The offer is subject to regulatory approvals.
