Capital & Credit Merchant Bank Ltd. has maintained its unbroken record of significant profits, with another commanding financial performance in the second quarter of 2005, ending June 30.
Unaudited consolidated financial results reveal that the Group’s recorded Net Profit for the six months ending on June 30, 2005, was approximately J$761 Million, i.e. 88% of the total profit recorded for the audited 2004 results. For the second quarter of 2005, J$396 Million was recorded in Net Profit, a 27% increase over the comparative period in 2004.
Bank President and CEO, Curtis Martin, notes that in the context of low to declining interest rates in the local marketplace, the Group’s strategy of diversifying its income streams has resulted in Gross Operating Revenue remaining relatively stable, at J$1.43 Billion for the quarter just ended.
The main contributor to Other Revenues for the second quarter, Mr. Martin says, was Net Gains on Securities Trading, which stood at J$400 million, a 122% increase over the J$180 million made in the comparative period last year. This more than offset Net Interest Income, which declined by 26.75% over the second quarter of 2004 to J$250 Million.
Gross Revenue, which includes Other Revenues, grew by 97% over the comparative period to J$420 Million. He points out further that Net Interest Income and Other Revenues, amounted to J$670 Million, a 21% increase over the J$555 Million realized for the second quarter of 2004.
The Bank President says also that the Group’s Efficiency Ratio, which tracks non-interest expenses as a percentage of revenues, continues to be excellent. For the quarter just ended, he notes, CCMB achieved an efficiency ratio of approximately 33%, while for financial year 2004, it was recorded at 40.5%.
Assets continue to grow, with Total Assets at June 30 amounting to J$54.5 billion, a 6% increase over the $51.5 billion recorded in the comparative quarter. With regard to the Group’s Capital Base, total Shareholders’ Equity grew to J$3.96 Billion, a 36% gain since the end of financial year 2004.
For his part, Chairman of the Bank, Mr. Ryland T. Campbell, notes with pleasure that Earnings per Stock Unit continue to grow, with a 28% increase to 67 cents for the second quarter, over the 53 cents earned in second quarter 2004.
