1st Oct 2019 14:31
(Alliance News) - Caribbean Investment Holdings Ltd on Monday said its annual profit declined, driven by the non-repeat of a USD11.0 million impairment reversal the year before.
In the financial year ended March 31, the holding company posted a pretax profit of USD14.7 million, 47% lower than the USD27.8 million recorded in the first half of 2018.
Net interest income from its Financial Services division fell by 18% to USD28.1 million from USD34.1 million but non-interest income more than halved to USD8.5 million from USD19.2 million. This was due to the non-repeat of the impairment allowance granted to its subsidiary The Belize Bank Ltd.
Caribbean Investment explained: "In November 2017, the Caribbean Court of Justice ruled in favour of The Belize Bank, the group's largest subsidiary, granting permission to The Belize Bank to enforce a London Court of International Arbitration award in the same manner as a judgement or order of the Supreme Court.
"This favourable ruling had significant positive impact on the net earnings of fiscal 2018 particularly with an USD11.0 million reduction in impairment provisions recorded on the government of Belize receivable."
Corporate income fell by 15% to USD1.1 million from USD1.3 million during the period.
Shares in Caribbean Investment were untraded in London on Tuesday afternoon, last quoted at 16.05 pence each.
By Eric Cunha; [email protected]
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