The release of provisions following last year’s increase due to the COVID-19 pandemic has resulted in a more than 90 percent increase in net income for Finance Corporation of The Bahamas (FINCO) over the same period during 2020.
In the BISX-listed company’s recently released financial statements for the nine-month period ending July 31, its Chairman Robert Johnston said despite this improvement, the bank still registered lower interest revenues.
“We wish to report that the bank’s net income for the nine months ended July 2021 was 22.3 million, which represents a 91 percent or 10.6 million increase when compared to net income of 11.7 million for the corresponding period for 2020,” he said.
“This favorable increase in profit is primarily due to provision increases in 2020 as a result of the COVID-19 pandemic and releases of provisions in 2021. These were partially offset by lower interest revenues. The bank’s capital ratio of 49.9 percent continues to be strong, is above regulatory requirements and is comprised mainly of Tier 1 capital.”
Net interest income for the nine-month period was $26.1 million and total income was $27.5 million, compared to the $28.7 million and $30.2 million, respectively, during the same period in 2020.
The bank’s performance is a turnaround from the 64 percent loss it reported in its first quarter financials in January, as the pandemic’s impact raged on at the start of the year.
The change is reflected in the wider banking sector, as reported earlier this month by The Central Bank of The Bahamas, which noted that lending conditions and the demand for credit improved during the first six months of 2021.
The post FINCO’s net income up more than 90 percent appeared first on The Nassau Guardian.
source https://thenassauguardian.com/fincos-net-income-up-more-than-90-percent/
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