Capital & Credit Records $80 million Profit in First Quarter

The Capital & Credit Financial Group Limited (CCFG) has recorded a Net Profit of $80.78 million for its first Quarter ended March 31, 2009.

The Group’s Profit was achieved despite the negative impact of the Global downturn on its business in the quarter under review, in particular the decline in value of the Jamaica Eurobonds and the increase in Interest Rates on Deposits and other funding instruments in the local economy.

Although the First Quarter 09 Profit is below the achievement of $141.49 million in the corresponding period in 2008, last year’s comparative result for the First Quarter included a one-time gain of $42.79 million.
Stockholders’ Equity, as at March 31, amounted to $5 billion and represents an increase of 17%, when compared to the same period in 2008.

Chairman & Group President, Ryland T. Campbell, has signalled the Organization’s intention to maintain Profitability and notes that, “The Group will continue to strengthen its Capital Base through Capital Growth, Cost Containment and Earnings Retention, even in the face of the global uncertainties and their impact on our regional and local economies.”

He also notes that “The four percent increase in Non-Interest Expenses, which excludes the Loan Loss Provision, is evidence of the Group’s commitment to Cost Containment and productive Efficiency and remain areas of critical focus for the Group.”

For the current period ending March 31, 2009, CCFG increased its Gross Operating Revenue marginally to $1.56 billion, compared to the corresponding period in 2008, with Loans contributing $338.48 million or 35 per cent, to boost Revenue. 
Other Revenue, also saw a slight increase over the First Quarter last year, with Foreign Exchange Trading and Translation Gains, Dividend Income, Commission and Fee Income contributing largely to this improvement.