Peter Bunting, chief executive officer of Dehring Bunting and Golding. - File
Investment bankers Dehring Bunting and Golding (DB&G) reported a poor third quarter to December 31, with its earnings report reflecting a 17 per cent fall in profits to $204.7 million relative to $245.7 million made in the matching 2005 quarter.
Its nine-month position was more palatable, reflecting only a small $4 million dip in net profits to $543 million relative to the prior year's position off similarly-flat net revenues of $1.22 billion.
Earnings per share were down from $1.80 to $1.75.
The stock price fell $1.00 Monday to $27.00.
A $200 million gain in interest income was eroded by a similar increase in expenses associated with the generation of the business. DB&G recorded declines in its income streams, and increases in other expenses, some of which was offset by a doubling of foreign exchange gains from $60 million to $148 million.
"These results benefited from some end-of-year volatility of the US dollar," said DB&G in a media statement, issued with the accounts.
But: "Reduced bond trading and commission income outweighed improved foreign exchange trading and net interest income on a comparative year-to-date basis."
DB&G saw a more than $70 million decline in 'gains on securities trading' from $394 million to $320 million in the nine months of 2006, and a $20 million decline in fee income.
Securities trading income was down by more than $80 million
for the December quarter, partially offset by a $12 million gain in fee income.
Healthier balance sheet
The accounts signed off on by Peter Bunting and Gary Sinclair in their new positions as CEO
and chief operating officer, respectively, did reflect a healthier balance sheet with boosted total assets $38 billion from $30 billion at the end of March 2006, and a stronger capital base of $4 billion.
Scotiabank Jamaica and its parent in Canada last year acquired controlling stake of 68.54 per cent in DB&G, in a deal that locked Bunting, Sinclair and other big shareholders into selling their stake to the multinational, and staying on at the brokerage as employees.
Its funds under management grew to $39 billion - 28 per cent more than the year prior - including $6 billion of funds held in trust.
business@gleanerjm.com
