Capital & Credit Still Profitable Despite Challenges

The Capital & Credit Financial Group Limited (CCFG) has recorded a Net Profit of $60.45 million for its Second Quarter ended June 30, 2009 despite the challenges of the current economic downturn affecting the international and local markets.

The Group grew its Net Interest Income, which represents over 75 per cent of its Net Revenue, by 27% to approximately $349 million over the previous quarter. In spite of the challenging financial year thus far, Capital & Credit also increased its Total Interest Income, which accounts for 93 per cent of its Overall Revenue, by 18% or approximately $23 million over the $1.26 billion recorded in the corresponding period in 2008.

Loan Interest Income recorded for the Quarter under review, totalled just over $364 million, a 43% or approximately $110 million increase over the Second Quarter posting in 2008, of $254.5 million.

Commenting on the Group’s performance, Chairman & Group President, Ryland T. Campbell, notes that, “Regardless of market conditions, the Capital & Credit Financial Group remains committed to improving its Capital Base through Earnings Retention.”

He notes further, “A 12% increase to $1.6 billion in the Gross Operating Revenue in this quarter, over the comparative quarter in 2008, is but one indicator that the Group is achieving its strategic targets of growing its Core Sustainable Income through greater focus on higher-yielding activities, notwithstanding the full blown recession that now faces the domestic market and which has had a negative impact on the Remittance and Broker Dealer businesses in particular.”  However the Group Mr. Campbell states, is well-poised to take advantage of any early recovery in the overseas market.

As at June 30, 2009, CCFG’s Total Assets stood at approximately $46 billion, which also reflects the Group’s management strategy to de-emphasise lower-yielding Treasury activities, which see the Treasury Portfolio’s investment in securities at approximately $35 billion, compared to just under $40 billion reported for the 2008 quarter.  

Speaking on the Banking operations in the period under review, Deputy Group President, Banking and Investment Services & CEO of Capital & Credit Merchant Bank, Curtis Martin, notes that the Banking Group outperformed its previous quarter’s result, contributing After Tax Profit of approximately $84 million, compared to $82 million for the First Quarter 2009.

Mr. Martin, points to the fact that “The eminent credit crunch did not prevent the Bank from posting an increase in its Loan Portfolio, after provision for Loan Losses, which amounted to $7.4 billion, compared to the $7.2 billion recorded in the corresponding quarter last year.”  He notes however, that the Group continues to focus on reducing its Loan Loss Provision portfolio, which stood at 3% of its Loan Portfolio, as at June 30, 2009.

Looking ahead to the remaining six months of the year, Chairman Campbell states that even as the Global Economic Crisis continues to loom with fallouts in major sectors, the Capital & Credit Financial Group remains committed to its strategies aimed at sustained profitability through improved cost containment, improved customer service delivery and building on core competencies.