By Al Edwards, Business Co-ordinatorLOCAL FINANCE house Capital & Credit Merchant Bank (CCMB) headed by Ryland Campbell has recorded consolidated net profit after tax of $465.27 million a 62 per cent increase over the previous year's figure of $287.14 million.
In the process, the Bank also significantly increased its earning per share and pushed its Total Assets Under Management past the $40-billion mark.
CCMB's audited financial statements show that for the 12-month period ending December 2003 the weighted average earnings per share increased by 47.37 per cent to $0.84, when compared to the $0.57 recorded in 2002. At the same time, there was significant growth in the Bank's portfolio, with total assets under management moving to $41.62 billion a 37.36 per cent increase over the $30.30 billion recorded in 2002.
Shareholder's equity amounted to $2.09-billion as at December 31, 2003 an increase of 66.39 per cent over the $1.25 billion for the corresponding period in 2002.
Reviewing Capital & Credit's outstanding performance for 2003, President Curtis Martin noted that "The unprecedented increases in CCMB's absolute and relative profit measures were propelled by very impressive growth in fee-based activities; strong growth in average earning assets; good cost containment, along with improved efficiency in tax-planning activities."
CCMB's net interest income rose to $632.85 million in 2003 a 33.11 per cent increase over the $475.43 million earned the previous year. This resulted from a 37 per cent increase in average total earning assets, which moved from $22.95-billion in 2002 to $34.8 billion in 2003. Other income grew by 121.7 per cent to $393.17 million in 2003, with foreign currency trading gains of $169.65 million representing a major contributor to this growth.
Mr. Martin noted that other significant contributors to growth in other income included securities trading which yielded $71.58 million; as well as commission and fees of $73.30 million, of which stockbroking accounted for the major activity. He said greater emphasis would be placed on this source of income to deliver better risk adjusted returns on a sustainable basis.
ASSETS GREW RAPIDLY
The Bank's wholly-owned subsidiary, Capital & Credit Securities Limited (CCSL), contributed significantly to its results during 2003. CCSL's assets under management grew rapidly from $5.94 billion in 2002, to $17.94 billion in 2003. The main drivers of the company's improved performance were increased activities in stockbroking, portfolio planning and pension fund management.
Chairman of the Capital & Credit Group, Ryland T. Campbell, said the Bank's positive performance during 2003 reflected its management strategy of accelerating the growth of its core business. He asserted that "The Bank's continued diversification of income stream along geographic, products and currency lines, combined with a number of strategic alliances" were expected to enable the Company to deliver consistent returns to our shareholders."
The chairman further attributes the Bank's success to the hard work, dedication and professional competence of the staff, together with the continued loyalty of its expanded customer base as well as customer service quality.
Of the future, the chairman states that the new strategic plan will result in increased profits for 2004, and more diversified financial services product range through geographic expansion and technological improvements.
The Capital & Credit Financial Group, through its flagship Company, Capital & Credit Merchant Bank is marking its tenth anniversary this year.
