Capital & Credit Reports growth in Net interest Income and Profits for the First Quarter 2010

The Capital & Credit Financial Group (CCFG) and Capital & Credit Merchant Bank (CCMB) have both recorded un-audited increases in Net Profit After Tax of 8% and 12%, respectively, for the just-ended First Quarter 2010.  CCFG’s profit grew to $87.14 million, compared to the $80.78 million in 2009, while CCMB’s profit grew to $92.25 million, compared to the $82.40 million for the similar period last year.  

According to Deputy Group President, Banking and Investment Services & CEO of Capital & Credit Merchant Bank, (CCMB), Curtis Martin, “The most positive aspect of the Groups’ performance has been the 16% growth of CCFG’s Net Interest Income (NII), which moved up from $274.57 million, to $319.72 million and the 28% increase for CCMB, which grew to $328.55 million, from $256.27 million in the period under review.”

“We have been able,” Mr. Martin notes, “to strategically strengthen our Core Business Line of Net Interest Income despite the lower yields and extended maturities of the Groups’ locally-issued Investment Securities arising from the Jamaica Debt Exchange (JDX) in February.”

Another notable achievement for The Group was in the area of Cost Containment, where a key initiative was the implementation of consolidated work flows and processes, resulting in reductions in Total Operating Expenses by 15% for CCFG and 10% for CCMB.

A look at the Companies’ Balance Sheets reveal that Total Assets as at March 31, 2010, stood at $43.24 billion, compared to $47.7 billion in 2009 for CCFG and $43.16 billion, compared to $47.53 billion in 2009 for CCMB. During the Quarter, the Companies continued to focus on expanding the Retail and Corporate Lines, while selectively acquiring higher-yielding assets and selling low-yielding ones in order to maintain an optimal risk profile. 

The Capital & Credit Financial Group continues to sustain its strong Capital Bases through Earnings Retention, achieving an increase of 26% in Total Stockholders’ Equity of $6.31 billion for CCFG and over $6.2 billion or 21% for CCMB for the first three months of 2010 over the comparative period in 2009. Staff Costs and other Operating Expenses for both companies have also shown significant reductions of up to 10 percent.”

For his part, Chairman & Group President, Ryland T. Campbell, maintains cautious optimism: “We anticipate that both the global and local economies will begin the measured steps on their paths to recovery as signalled by successive upgrades of Jamaica’s Country ratings by the International Rating Agencies following the Government’s successful completion of Jamaica’s Debt Exchange (JDX) programme.”

Mr. Campbell notes that, “The road ahead still has challenges; however we are already adjusting to the new economic realities.”  “All things equal,” he continues, “our strong Capital Base, coupled with the fiscal prudence and pro-active action by our Management Team in re-assessing and re-aligning the Groups’ business models in order to capitalize on opportunities offered by the JDX, particularly in providing additional credit facilities to the productive industries; the development of new products and services; as well as continued improvements in our Customer Service Delivery Systems, Back Office Operations and Technology and the new strategic alliances in process, will enable the Capital & Credit Financial Group to maintain its stability and continue on its path of growth for 2010.”