Capital & Credit Merchant Bank

Capital & Credit Merchant Bank Ltd. (CCMB) has continued its record of consistent increases in profits since its inception in 1994, with  gains for the Third Quarter, 2005.  For the nine months ending September 30, 2005, the Capital & Credit Financial Group, consisting of the Bank and its subsidiaries, surpassed the entire annual profit recorded for 2004.

The Group’s year-to-date profit is J$941.78 million. For the period ending September 30, 2005, the Capital & Credit Financial Group recorded a 20% increase over the comparative period 2004 in Net Profit attributable to Equity Holders, amounting to approximately $181 million.

Gross Operating Revenue, which comprises Net Interest Income and Other Revenue, amounted to J$1.3 billion for the quarter, a 4.5% increase over the comparative quarter in 2004. The contributors to Gross Revenue include Other Revenue, valued at just over J$169 million, an 85% increase over the same period in 2004.  The combination of Net Interest Income with Other Revenue produced overall Net Interest Income and Other Revenue of J$431 million, a 15.6% increase over the J$372 million recorded in Third Quarter 2004.

Commenting on the results, Bank President, Curtis Martin notes that the Group is already making gains from the implementation of a shift in its business model to a strategy of higher return on asset employed and more constrained growth in the size of the balance sheet.

The Bank President further notes that in keeping with its diversification and growth initiative in net income, CCMB has trimmed the size of its overall Balance sheet, to over J$47 billion at the end of the Third Quarter, as opposed to the approximately J$53 billion recorded for the third quarter 2004. The Net Interest Income and Other Revenue grew to just over J$1.8 billion, a 30.5% improvement over the comparative nine – month value of J$1.4 billion.

He notes that a principal contributor to Other Revenue for the quarter was Net Gains on Securities Trading (J$125 million), a 126% increase over the J$55 million made in the comparative period, as well as commission and fee income of J$20.5 million, a 339% increase over the third quarter, 2004.

Capital & Credit’s Efficiency Ratio, which measures Non-Interest Expenses as a percentage of revenue, continues to improve. Efficiency, measured as a percentage of Non Interest Expenses to Net Interest Income and Other Revenue, amounts to 47.62% for the quarter, an improvement over the 49% recorded in the comparative quarter, 2004. Non-Interest Expenses in the period amounted to $205 million, compared to approximately $183 million in the same period in 2004.

Group Chairman, Ryland T. Campbell, notes that the significant investments in human talent, which Capital & Credit continues to make, is facilitating the Organization’s Income Diversification strategy, to soundly manage market and operating risks and address increasing customer needs. Staff costs constitute the most significant operating expenditure, at just under J$103 million.

Mr. Campbell is confident that the prudent investment in human potential will enhance product and service development and delivery, by improving employee competencies.

For the nine – month period ending September 30, 2005, Earnings per Stock Unit achieved, amounted to 160 cents, with the third quarter earnings recorded at 31 cents per Stock Unit. This is a 19% increase over 2004’s third quarter figure of 26 cents. Earnings per Stock Unit, is based on the Net Profit attributable to CCMB’s equity holders, and the 588.8 million stock units which were in issue during the Third Quarter.

The successful management of assets and opportunities by Capital & Credit, the Group Chairman notes, has resulted in Total Stockholders Equity amounting to J$3.8 billion, a 30% increase over the value recorded at December 31, 2004

With just over two months remaining until the end of 2005, the Group Chairman remains confident that 2005 will be “a milestone year” for Capital & Credit Merchant Bank Ltd.