Securing Your Future Is Our Main Investment

Updated: 28-03-2024 - 12:00PM   8 6 CLOSED

Financial News

Apr 2014 Financial News

First Citizens profit increases 3.9 per cent

Apr 09, 2014

The First Citizens group has concluded another profitable quarter, First Citizens chairperson Nyree Alfonso said by way of introduction to the company's unaudited financial statements for the three months ended December 31, 2013. Though signed February 5—the financials for what is the first quarter of fiscal year 2014 for First Citizens —were not released until the first week of April.
"Profit after tax increased by 3.9 per cent to $174.8 million in December 2013 over the corresponding period last year. The group experienced a year on year growth of 4.4 per cent with the total assets of $36.2 billion as at December 2013. During the period, Standard and Poor’s (S&P) completed their annual review and re-affirmed the investment grade rating of BBB+ for the Institution," she said. On S&P's scale, BBB+ is three notches above "junk" also known as "speculative" or "non-investment grade."

The group’s first quarter (FY 2014) performance was particularly noteworthy in light of current market conditions, which continue to be marked by high liquidity and low interest rates, the chairperson said. "Given the early signs of economic recovery and the group’s ongoing focus on risk management, operational efficiency and stakeholder engagement, the directors and management remain confident of sustained growth and profitability for fiscal 2014," her statement said.

The bank's impairment expenses net of recoveries (which, for a bank, is usually a sign of how many bad loans it is having to absorb) increased from $10.79 million in Q1 2013 to $12.12 million in Q1 2014. Looking at another key indicator, the bank's earnings per share (EPS) fell by only one cent from $0.71 in Q1 2013 to $0.70 in Q1 2014. The bank paid $36.78 million in tax in Q1 2014 versus $33.64 million during the same period last year.

First Citizens Bank Ltd and its subsidiaries provide retail, commercial and corporate banking as well as investment banking services. The group operates primarily in T&T and the Eastern Caribbean. The bank is a subsidiary of First Citizens Holdings Ltd (Holdings), a company owned by the Government of T&T. In August 2013, First Citizens Holdings disposed of 20 per cent of its ordinary share holdings interest, which is now trading on the T&T Stock Exchange.

On September 12, 1993, the Workers’ Bank (1989) Ltd, National Commercial Bank of T&T Ltd, and Trinidad Co-operative Bank Ltd, under and by virtue of vesting orders made by the Finance Minister under Section 49 of the Financial Institutions Act, 1993, were transferred to and became vested in the bank. All entities which were transferred to, or from which specific assets or liabilities were transferred to the bank, were wholly-owned or controlled by the T&T Government.


Source:
Aleem Khan
Trinidad Guardian
Wednesday April 9, 2014

http://guardian.co.tt/letters/2014-04-09/first-citizens-profit-increases-39-cent