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|Commonwealth Bank continues to report positive performance|
|Thursday, 16 October 2008 15:28|
Commonwealth Bank reported its third quarter earnings today with a 7.6% increase in net income and total assets topping $1.25 billion.
For the nine month period ending September 30, 2008, Commonwealth Bank Chairman T.B. Donaldson, CBE, reported net income of $38 million, up from $35.4 million for the same period last year. Assets stood at $1.25 billion, with strong cash and liquid assets composition of $218 million, up $26.5 million from December, 2007 and capital ratios remained well above regulatory requirements with total equity exceeding $212 million, up $11 million since December 2007.
“Our principles of safety and soundness underlie our prudent management of the Bank, thus our conservative policy of consumer loans write-offs and aggressive provisioning policies, results in a strong Balance Sheet,” noted T.B. Donaldson, C.B.E., Chairman of Commonwealth Bank, in his report. “The strength reflected not only in loan loss provisions over 150% of impaired loans, but the total impaired loans at 1.4% of the loan portfolio is well below the industry average.”
Following a 3-for-1 stock split late last year, share price that had stabilized around the $7 mark has begun to climb and yesterday stood at $7.37 a share, an increase of 37 cents per share since the last quarter.
Warning about the future of the Bahamian economy, Donaldson noted that while Commonwealth Bank has no exposure in US markets stricken by bloated energy costs and the sub-prime mortgage crisis “the resulting impact on the US economy will continue to challenge our tourism industry and economic activity in The Bahamas. Despite these tough times the bank surpassed the third quarter results of the prior year when the economy was a lot stronger. As we look towards the end of the year we are optimistic about our 2008 performance. As always, we have to thank our dedicated and loyal employees whose noble efforts allow us to serve our customers in the way that they deserve.”
Commonwealth Bank operates 10 locations throughout New Providence, Grand Bahama and Abaco. It is the nation’s largest publicly held firm with approximately 6,500 shareholders and employs more than 500 people.
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