Conservative impairments reduce Consolidated Finance's profits 2018
Despite the subdued economic environment, Consolidated Finance Co. Ltd. said in its latest published financial statement that it had produced “a satisfactory operating income performance.”
CFI reported a loss before taxation of $4.4 million for the year ended December 31, 2018 compared to a profit of $3.9 million in 2017.
According to Chairman Gregory Hill, the loss was largely due to what he termed “conservative impairments” taken on legacy non-performing loans and investments of $9.2 million due to the depressed asset values and the impact of the Sovereign Debt Restructuring.
The impairment loss on loans was about $3 million, while on investments it was put at about $6 million.
Income before the write-offs was $4.7 million, and tax credit of $4.8 million left the company with a small profit of just under half a million dollars for the fiscal year.
Mr. Hill said CFI remained “one of the best capitalized operations as our capital base closed strong at $51.0 million, with the Company’s capital adequacy ratio at 27% on par with 2017 and well above the regulatory requirements of 8%, reflecting the strength of our business.”
He added that Consolidated’s parent company, ANSA Merchant Bank Limited, had Total Assets of over USD$1.1 Billion and a capital base of over USD$350 million as at December 31, 2018.
Earlier this year, Consolidated formally launched its new Corporate Sales Office at Regus, One Welches, St. Thomas.