Capital & Credit Reports Good Profits in the Third Quarter

The Capital & Credit Financial Group (CCFG) has recorded a Net Profit of J $94.48 million for its Un-Audited Third Quarter results ending, September 30, 2009.  This Net Profit growth represents an increase of 56%, compared to the previous quarter’s posting of approximately J$60 million, and just over 31% above its Earnings of J$72 million for the corresponding quarter last year. 

The Group also grew its Total Revenue by just over J$610 million, or approximately 33% over the J$459 million reported for the Second quarter this year.  Even in light of the contracting spreads driven by the Central Bank’s effort between July and September to reduce interest rates, Net Interest Income achieved amounted $346.86 million, which was on par with the Second Quarter 09 result of $348.58 million.

Commenting on the Banking Operations for the Third Quarter, Deputy Group President, Banking and Investment Services & CEO of Capital & Credit Merchant Bank, (CCMB), Curtis Martin, highlighted the fact that the Banking Group once again outperformed its previous quarter’s results.  “CCMB, and its subsidiaries,” he notes, “contributed After Tax Profit of just over J$107 million, to surpass both the First and Second Quarter profits achieved this year.”

“Despite the continuing aggressive declines in market conditions," the Deputy Group President notes, “CCFG’s Gross Operating Revenue of over J$1.6 billion also remained relatively stable in the period under review."

In the meantime, "cost containment initiatives," Mr. Martin says, "continue to remain an imperative in the Group’s overall management strategy and has resulted in a reduction in Staff Costs by approximately 6% to just under J$153 million, when compared to the approximately J$162 million reported in the Second Quarter this year."

Chairman & Group President, Ryland T. Campbell, notes that "the Capital & Credit Financial Group continues to show resilient performance in spite of the unprecedented impact that the financial crisis has had on the economy."  He expressed pleasure with the Third Quarter’s increased Profit, as he says it validates the Group’s commitment to "improve value for all shareholders."

CCFG’s Total Assets as at September 30, 2009 stood just above J$43 billion, which represents roughly an 11.8% decline in comparison to the J$49.7 billion reported in 2008.  This, Mr. Campbell explains, is as a result of “a deliberate strategy employed by management to de-emphasize lower-yielding Treasury activities,” as well as a reflection of “the effects of the exacerbating global economic conditions.”

New initiatives undertaken by the Group in the Quarter include the relocation of it Securities arm, Capital & Credit Securities Limited (CCSL), to the RKA building on Grenada Way, next door to the Bank, in New Kingston.  The company expects to see a notable reduction in overhead costs and increased efficiencies as a result. In the last Quarter, the Bank will officially launch its Debit Card service, as well as roll out its Automated Clearing House service, which will both enhance customer service delivery across the island.

Mr. Campbell states that the Company will continue to sharpen its strategic focus and streamline operations going forward. He stated that “a congruent alliance, through an expanded role of the Florida-based Broker/Dealer, as well as a new thrust in the Remittance Business has been initiated and the anticipated positive outcome of this deliberation is expected to position the Group to take advantage of forthcoming market opportunities.”

The Group Chairman reiterates that “creating value for our clients and shareholders remains paramount and Capital & Credit intends to sustain momentum and seek profitable growth across all our business lines.”

View CCFG's Un-Audited Third Quarter 2009 Financials