CIHL.L Regulatory News (CIHL)

Interest income

Interest income for the six months decreased by US$1.7m or 11% due largely to minimal loan fees earned as lending was restricted during the period; additionally, interest reversals were recorded for two large commercial loans during the half year.

Non-interest income

Non-interest income decreased by US$1.6 million as the pandemic had significantly affected the flows of foreign currency thereby adversely impacting foreign exchange income as well as the cards business of the domestic bank.

Interest expense

Interest costs decreased by US$0.4m being a result of decreased interest rates on fixed deposits.

Credit impairment charges

Credit impairment charges increased by US$2.4 million reflecting the impact of revised IFRS 9 scenarios cognizant of the adverse impact of the COVID-19 pandemic.

Non-interest expenses

Non-interest expenses decreased by US$0.7m reflecting cost discipline measures introduced following the pandemic.

Non-recurring item

Prior year's results include a non-recurring item of $7.2 million resulting from the reversal of a liability previously recorded for share options which expired on 01 August 2019.

Caribbean Investment Holdings Limited

Financial Information

Consolidated statements of comprehensive income (unaudited)

US dollars in millions except per share data

Six months ended 30 September

2020

2019

Financial Services

Interest income

14.3

16.0

Interest expense

(2.1)

(2.5)

Net interest income

12.2

13.5

Charge of allowances for impairment of loans to customers

(2.9)

(0.5)

Net interest income after allowance for impairment of loans

9.3

13.0

Non-interest income

2.4

4.0

Non-interest expense

(8.1)

(8.8)

Operating income - Financial Services

3.6

8.2

Corporate

Corporate income

0.7

0.5

Corporate expenses

(1.8)

(1.6)

Operating loss - Corporate

(1.1)

(1.1)

Net income before tax and non-recurring items

2.5

7.1

Taxation

(1.9)

(2.0)

Net income before non-recurring items and before other comprehensive income

0.6

5.1

Non-recurring item **

-

7.2

Net income before other comprehensive income

0.6

12.3

Other comprehensive income:

0.1

-

Net gain on financial assets at FVOCI

-

-

Total comprehensive income

0.7

12.3

Income earnings per ordinary share (basic and diluted)

 $ 0.01

 $ 0.12

** On 01 August 2019, 6,999,997 in share options expired; the non-recurring item reflects the reversal of the related liability.

Caribbean Investment Holdings Limited

Consolidated statements of changes in shareholders' equity (unaudited)

US dollars in millions

Called up

share capital and

Treasury

Statutory

Retained

share premium

shares

reserve

earnings

Total

$m

$m

$m

$m

$m

At 31 March 2019

53.3

(21.7)

7.0

51.5

90.1

Accumulated other comprehensive income

-

-

-

-

-

Dividends

-

-

-

(7.0)

(7.0)

Transfer to statutory reserve

-

-

0.3

(0.3)

-

Net income

-

-

-

9.4

9.4

At 31 March 2020

53.3

(21.7)

7.3

53.6

92.5

Accumulated other comprehensive loss

-

-

-

0.1

0.1

Issuance of shares

17.1

-

-

-

17.1

Cancellation of treasury shares

 (21.7)

21.7

-

-

-

Net income

-

-

-

0.6

0.6

At 30 September 2020

48.7

-

7.3

54.3

110.3

Caribbean Investment Holdings Limited

Consolidated balance sheets (unaudited)

US dollars in millions

At 30 September

2020

2019

Assets

Financial Services

Cash and cash equivalents

12.2

10.4

Balances with the Central Bank of Belize

47.0

45.6

Due from banks (net of allowances)

22.4

41.8

Investment securities

125.7

137.4

Loans to customers (net of allowances)

231.9

238.7

Property, plant and equipment

17.4

18.6

Due from Government of Belize (net of allowance)

38.7

40.4

Other assets

2.2

6.4

Total Financial Services assets

497.5

539.3

Corporate

Cash, cash equivalents, and due from banks

20.9

1.0

Other current assets

0.4

0.4

Total assets

518.8

540.7

Liabilities and shareholders' equity

Financial Services

Customer accounts

401.1

429.5

Lease liability

0.3

-

Other liabilities

6.6

7.8

Total Financial Services liabilities

408.0

437.3

Corporate

Current liabilities

0.5

1.0

Total liabilities

408.5

438.3

Shareholders' equity:

Called up share capital and share premium

48.7

53.3

Treasury shares

-

(21.7)

Retained earnings

61.6

70.8

Total shareholders' equity

110.3

102.4

Total liabilities and shareholders' equity

518.8

540.7

Caribbean Investment Holdings Limited

Consolidated statements of cash flows (unaudited)

US dollars in millions

Six months ended 30 September

2020

2019

Cash flows from operating activities

Net income

2.5

14.3

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation

1.3

1.2

Allowance for impairment on loans to customers

2.9

0.5

Changes in assets and liabilities:

Decrease in Government of Belize Receivable

0.8

0.8

Decrease in other and current assets

0.6

0.2

Decrease in other and current liabilities

(0.5)

(7.7)

Tax paid

(1.9)

(2.0)

Net cash generated by operating activities

5.7

7.3

Cash flows from investing activities

Purchase of property, plant and equipment (net of disposals)

(0.4)

(0.4)

Proceeds from sale of property, plant, and equipment

0.1

-

Increase in investment securities

(5.9)

(4.5)

Increase in loans (net of charge-offs) to customers

(1.1)

(2.3)

Net cash used in investing activities

(7.3)

(7.2)

Cash flows from financing activities

Decrease in customer accounts

(7.8)

(0.9)

Share issue

17.1

-

Unrealized gain on securities

0.1

-

Net cash generated by (used in) financing activities

9.4

(0.9)

Net change in cash, cash equivalents and due from banks

7.8

(0.8)

Cash, cash equivalents and due from banks at beginning of year

94.7

99.6

Cash, cash equivalents and due from banks at end of year

102.5

98.8

Cash and cash equivalents - financial services

12.2

10.4

Balances with Central Bank of Belize - financial services

47.0

45.6

Due from banks (net of allowances) - financial services

22.4

41.8

Cash, cash equivalents and due from banks - corporate

20.9

1.0

102.5

98.8