CAPITAL and Credit Financial Group (CCFG) and the Capital and Credit Merchant Bank (CCMB) both posted significant increases in pre-tax profit for the 2010 audited financial year.

CCFG recorded over 68 per cent increase to $483 million while CCMB’s pre-tax profit jumped 60 per cent to $555 million.

Huge jumps in tax charges, however, whittled away most of the gains made in 2010, leaving both entities’ bottom lines down to year-earlier levels.

The financial institution’s group chairman and president, Ryland Campbell, said that “Cost containment continues to be a key initiative for the overall (group) and as such, other major contributors to the growth in profit for both companies for 2010 were the reductions in Non-Interest Expenses (NIE), Loan Loss Provision and Property Expenses”.

CCFG, non-interest expense (NIE) was reduced by 22 per cent below year-earlier levels, moving from $1.66 billion in 2009 to $1.3 billion in 2010; while for CCMB, the NIE decreased by 19 per cent to $1.19 billion in 2010.

CCFG’s loan loss provision and professional fees were also managed over the year in review to achieve declines of 64 per cent and 45 per cent respectively, and for CCMB, declines of 74 per cent and 11 per cent, respectively.

CCMB’s president and CEO, Curtis Martin, said that, “the banking group continues to focus on its core income lines and cost-containment initiatives, which have allowed for the achievement of greater profitability.”

He noted, however, that although the loan portfolio after provision for loan losses declined from $6.95 billion to $6.44 billion, “the majority of these loans are not considered impaired and the group continues to take aggressive actions in order to expedite collections”.

“As was started early in 2010, CCMB,” Martin said, “will continue to reduce Loan Interest Rates, in keeping with the industry, so as to benefit its customers.”

Campbell said that “the (group) continues to maintain cautious optimism as the country seemingly heads down a path of economic recovery”.

Added Campbell: “as we move into another financial year, the Group’s management team will continue to be pro-active in taking the necessary precautionary measures by re-assessing and re-aligning its business models and implementing improved work flows and processes while continuing to capitalise on other opportunities to grow loans and other fee-income activities, as well as develop new value-added products and services to the benefit of its stakeholders.”