CCFG group 2011 profit up 27%

Capital and Credit Financial Group (CCGF) saw its net profit increase by 27 per cent to J$364 million for the year ended December 2011, largely attributable to cost containment, a 170 per cent growth in securities trading and a 59 per cent increase in operating income.

"The Group’s cost containment strategy achieved its objective as there was a 6 per cent decline in non-interest expenses in 2011, amounting to approximately $1.2 billion compared to $1.3 billion in 2010,” said CCFG’s chairman, Ryland Campbell.

Campbell also attributed the group’s positive performance to a 59 per cent increase in total other operating income to J$805 million from J$507 million in 2010.

The Merchant Bank Group achieved an almost similar increase of 58 per cent in its total other operating income, moving to J$651 million from approximately J$412 million the previous year.

CCFG’s growth in securities trading in 2011 reflected a 170 per cent increase, moving to just over J$529 million from J$196 million in 2010.

Foreign exchange trading increased 10 per cent from J$89.6 million to just over J$98 million for the review period, the company said.

The Capital and Credit Merchant Bank Group (CCMB) recorded after tax profit of approximately J$2.2 million, moving to J$346 million from J$344 million reported in 2010.

Curtis Martin, president & chief executive officer of CCMB, said “there was a significant reduction in CCMB’s loan loss provision, moving to a net recovery of just over $13 million as at December 2011, from the negative position of approximately$80 million in 2010.”

Notwithstanding the adverse impact that current economic conditions were having on loan customers in the banking sector, Martin said, CCMB has been able to stabilise its level of past-due loans and expects significant recoveries as it continues its efforts to regularise those debts and expedite collections.

Total stockholders’ equity for CCFG in 2011 increased to just under J$7 billion, a 4 per cent increase over the J$6.7 billion achieved in 2010. 

CCFG has on balance sheet assets totalling J$32.9 billion, a slight dip from the J$39.5 billion it reported at the end of 2010.

During the year CCFG sold its interest in Express Remittance Services based in Cayman, realising a loss of J$76 million.
The group last traded at J$4.50 on the Jamaica Stock Exchange, with its over 927 million ordinary shares valued at $4 billion on the market.

Jamaica Money Market Brokers, which is seeking to acquire up to 100 per cent of CCFG’s shares, has already secured the formal undertaking of some of Capital & Credit shareholders, accounting for more than 50 per cent of the group’s issued ordinary share capital, to accept the offer to purchase their stocks.

However, the proposed acquisition requires the approval of the Minister of Finance and the Bank of Jamaica.

sabrina.gordon@gleanerjm.com