Capital G earns $3.6M in 2013

Capital G Bank Limited, a wholly owned subsidiary of the Clarien Group Limited today announced earnings of $3.6 million for the twelve months ending December 31, 2013, up from $1.1 million recorded in the prior year.

Co-Chief Executive Officer, Ian Truran said, “2013 continued in the same vein as 2012, with the Bank’s core operations performing well against the backdrop of a challenging economic environment. The investment in technology in 2012 and close examination of the way in which the Bank functions has contributed to increased efficiencies and improved customer service across the organization.”

“The core business continues to perform well, with net income increasing year-over-year by $2.5 million. Operating revenues, excluding securities gains and losses, increased $0.4m, to $60.3m in 2013 from $59.9m in 2012.”

The Bank’s total revenues before loan loss provisions were $60.2 million compared to $61.4 million in 2012, while total operating expenses increased marginally by $0.2 million, to $48.5 million from $48.3 million in the previous year.

Mr. Truran said, “The repositioning of certain areas of the Bank’s balance sheet in 2012 has been maintained in 2013. Over 72% of the Bank’s portfolio is now conservatively invested in U.S. Government Treasuries and Agency securities, with the balance primarily in sovereign and supra-national securities whereby the total portfolio is rated AA and above. Net interest income has decreased from the prior year by 1.4%, reflecting the reduced loan portfolio balances. Provisions for 2013 were $7.7m, down $4.4m, or 37%, from 2012, reflecting both a gradual improvement in the economic environment and the Bank’s prudent management of its loan portfolio. Some borrowers still face difficult economic circumstances and therefore the Bank continues to work with its customers to support them through these challenging times while working to limit credit losses.”

Mr. Truran further noted, “The Bank’s capital ratios reflect the stability of the balance sheet. Our total capital ratio of 14.84% is consistent with prior years’. Tangible common equity improved from 5.61% to 5.89% at the end of 2013.”

Mr. Truran added, “The Bank remains focused on its customers and on the effective management of its capital to maintain the strong and prudent positioning of its balance sheet. Capital will be re-deployed as necessary to enable further growth of the institution particularly as it relates to the expansion into global markets. There were encouraging signs in 2013 as the Bank has begun to see the rewards of the vigilant approach adopted during these difficult times.”

As a result of the recent amalgamation with Clarien Group Limited, the Bank will continue to diversify income streams by expanding its products and services offered through commercial banking, private banking, investment banking and institutional/corporate banking segments.

“Capital G Bank sees itself as an important part of the Bermuda community and remains committed to being a first-class financial institution on the island while also using Bermuda’s strong, well-positioned platform to grow globally.”

A complete review of the Capital G Bank 2013 Financial Earnings is available online at www.capital-g.com.