Big jump for a little bank

The Capital & Credit Financial Group (CCFG) has recorded a 31 per cent increase in net profit after tax of approximately $124 million for the third quarter ending September 30. The Capital & Credit Merchant Bank (CCMB) also achieved growth in its net after tax profit of 20 per cent. For the quarter, the merchant bank's profits advanced to just over $129 million from approximately $107 million for the similar period in 2009.

The CCFG's 2010 profits for the third quarter are up from approximately $94 million for the comparative period in 2009, with a 14 per cent increase in the year-to-date profit of approximately $269 million, compared to approximately $236 million achieved for the nine-month period last year.

reaping the benefits

CCFG Chairman & Group President Ryland T. Campbell notes that "Capital & Credit has begun to reap some of the benefits of its strategic decision to focus on and strengthen its core income line".

He points to the improvement in non-interest expenses as a major contributor to the strong financial results, which for the quarter under review reflected a 39 per cent reduction from approximately $477 million to just under $289 million. For CCFG loan loss provision and other operating expenses declined by 88 per cent and 36 per cent, respectively, while for CCMB, those expense lines declined by 88 percent and 60 per cent, respectively, for the quarter under review.

CCFG, Campbell notes, also recorded a 194 per cent growth in securities trading, moving from negative $90 million in 2009 to positive $85 million, as well as 15 per cent increase in its capital base, which stood at $ 6.5 billion as at September 30.

For his part, deputy group president, banking and investment services, Curtis Martin, says that despite the many economic challenges, the banking group continued to achieve growth for both profit and net-interest income with approximately $284 million and just under $993 million, respectively, year-to-date.

Martin, who is also the CEO of CCMB, highlights the 73 per cent improvement in the cash-liquid asset balances of $2.5 billion, up from $1.45 billion in the similar period in 2009 and an increase of 16 per cent in stockholders' equity over the comparative period as a significant area of growth.

Both CCFG and CCMB recorded major notable improvements in their non-interest expenses as a result of cost containment initiatives implemented this year.

pleased with results

Campbell says "overall, we are pleased with the results for this quarter despite the continued challenges of 2010 Capital & Credit remains cautiously optimistic as measures taken on the path of recovery from both the global and local economies take positive effect".

"As we move into the final quarter of 2010, the Capital & Credit Group," he says, "will continue to be proactive in taking the necessary precautionary measures by reassessing and realigning its business models, along with the continued implementation and improvement of workflows and processes, as well as capitalise on other opportunities offered by the Jamaica Debt Exchange programme, particularly in providing additional credit facilities to the productive industries."

In keeping with the industry, the group continues to reduce loan interest rates to the benefit of its customers. It is anticipated that with the lowering of local interest rates, confidence will return to the market, ultimately impacting positively on the prospect for future growth in the economy.