19 Dec 2018 07:00
This announcement contains inside information.
CARIBBEAN INVESTMENT HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018
Belize City, Belize, December 19, 2018 -- Caribbean Investment Holdings Limited (London - AIM: CIHL; Bermuda - CIHL) (the "Company" or "CIHL")
The Company reported a net income from operations of $6.8m for the six months ended September 30, 2018 (2017 - net income of $9.4m), and a net income per ordinary share from continuing operations for the six months of $0.07 (2017 - net income per share of $0.09).
Interest income decreased by $4.5m due to (i) a payout of banana industry loans totaling $28.5m in March 2018 and (ii) a reduction in the interest rate charged on the LCIA Award from 17.0% per annum to a statutory rate of 6.0% as determined by the Caribbean Court of Justice following their judgment in favor of The Belize Bank Limited in November 2017. Similar to prior year's results, the allowance for loan losses reflects a credit balance as the Company reported a reversal of allowances for the six months ended September 30, 2018 resulting from better than expected recoveries from the sale of collateral.
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)207 248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)20 739 8920
Note: This and other press releases are available at the Company's web site: http://www.cihltd.co.
Background Information
Caribbean Investment Holdings Limited (CIHL) is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited (BBL) is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is the largest, full service commercial and retail banking operation with a head office in Belize City and eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.
Caribbean Investment Holdings Limited |
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Financial Information |
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Consolidated statements of comprehensive income (unaudited) |
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US dollars in millions except per share data |
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Six months ended September 30 |
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| 2018 |
| 2017 |
Financial Services |
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Interest income |
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| 16.3 |
| 20.8 |
Interest expense |
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| (2.9) |
| (2.7) |
Net interest income |
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| 13.4 |
| 18.1 |
Allowance for loan losses |
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| 1.3 |
| 1.4 |
Net interest income after allowance for loan losses |
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| 14.7 |
| 19.5 |
Non-interest income |
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| 5.4 |
| 4.8 |
Non-interest expense |
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| (9.9) |
| (10.7) |
Operating income - Financial Services |
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| 10.2 |
| 13.6 |
Corporate |
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Corporate income |
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| 0.5 |
| 0.5 |
Corporate expenses |
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| (2.0) |
| (2.9) |
Operating loss - Corporate |
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| (1.5) |
| (2.4) |
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Net income before tax |
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| 8.7 |
| 11.2 |
Taxation |
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| (1.9) |
| (1.8) |
Net income after tax and before other comprehensive income |
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| 6.8 |
| 9.4 |
Other comprehensive income: |
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Unrealized gain on securities |
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| - |
| - |
Total comprehensive income |
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| 6.8 |
| 9.4 |
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Income earnings per ordinary share (basic and diluted) |
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| $ 0.07 |
| $ 0.09 |
Caribbean Investment Holdings Limited |
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Consolidated statements of changes in shareholders' equity (unaudited) |
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US dollars in millions |
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| Additional |
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| Share |
| paid in |
| Treasury |
| Retained |
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| capital |
| capital |
| shares |
| earnings |
| Total |
| $m |
| $m |
| $m |
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At April 1, 2017 | 0.6 |
| 52.8 |
| (21.7) |
| 23.5 |
| 55.2 |
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Accumulated other comprehensive loss | - |
| - |
| - |
| (0.1) |
| (0.1) |
Acquisition of shared in capital reorganization | (0.1) |
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| (0.1) |
Dividend |
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| (0.1) |
| (0.1) |
Net income | - |
| - |
| - |
| 20.6 |
| 20.6 |
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At March 31, 2018 | 0.5 |
| 52.8 |
| (21.7) |
| 43.9 |
| 75.5 |
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Accumulated other comprehensive loss | - |
| - |
| - |
| - |
| - |
Net income | - |
| - |
| - |
| 6.8 |
| 6.8 |
At September 30, 2018 | 0.5 |
| 52.8 |
| (21.7) |
| 50.7 |
| 82.3 |
Caribbean Investment Holdings Limited |
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Consolidated balance sheets (unaudited) |
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US dollars in millions |
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At September 30 |
| 2018 |
| 2017 |
Assets |
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Financial Services |
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Cash and cash equivalents |
| 10.1 |
| 14.1 |
Balances with the Central Bank of Belize |
| 47.5 |
| 78.5 |
Due from banks (net of allowances) |
| 21.6 |
| 20.4 |
Investment securities |
| 134.5 |
| 64.3 |
Loans to customers (net of allowances) |
| 240.3 |
| 264.2 |
Property, plant and equipment |
| 19.7 |
| 20.5 |
Due from Government of Belize (net of allowance) |
| 42.7 |
| 32.3 |
Other assets |
| 5.1 |
| 9.1 |
Total Financial Services assets |
| 521.5 |
| 503.4 |
Corporate |
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Cash, cash equivalents, and due from banks |
| 0.6 |
| 1.0 |
Other current assets |
| 0.2 |
| 1.0 |
Total assets |
| 522.3 |
| 505.4 |
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Liabilities and shareholders' equity |
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Financial Services |
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Customer accounts |
| 424.2 |
| 424.1 |
Other liabilities |
| 7.9 |
| 8.5 |
Total Financial Services liabilities |
| 432.1 |
| 432.6 |
Corporate |
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Current liabilities |
| 7.9 |
| 8.2 |
Total liabilities |
| 440.0 |
| 440.8 |
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Shareholders' equity: |
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Share capital (ordinary shares of no par value - |
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2018 and 2017 -103,642,984) |
| 0.5 |
| 0.6 |
Additional paid-in capital |
| 52.8 |
| 52.8 |
Treasury shares |
| (21.7) |
| (21.7) |
Retained earnings |
| 50.7 |
| 32.9 |
Total shareholders' equity |
| 82.3 |
| 64.6 |
Total liabilities and shareholders' equity |
| 522.3 |
| 505.4 |
Caribbean Investment Holdings Limited |
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Consolidated statements of cash flows (unaudited) |
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US dollars in millions |
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Six months ended September 30 | 2018 |
| 2017 |
Cash flows from operating activities |
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Net income from operations | 6.8 |
| 9.4 |
Adjustments to reconcile net income to net cash |
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provided by operating activities: |
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Depreciation | 1.0 |
| 0.9 |
Allowance for loan losses | (1.3) |
| (1.4) |
Changes in assets and liabilities: |
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(Decrease) increase in interest payable | - |
| (0.5) |
Increase (decrease) in Government of Belize Receivable | 4.0 |
| (2.5) |
Decrease in other and current assets | 1.3 |
| 1.4 |
(Decrease) in other and current liabilities | (4.2) |
| (0.3) |
Net cash provided by operating activities | 7.6 |
| 7.0 |
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Cash flows from investing activities |
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Purchase of property, plant and equipment (net of disposals) | (0.5) |
| (2.8) |
Increase in investment securities | (39.4) |
| (17.9) |
Decrease in loans (net of charge-offs) to customers | (1.2) |
| 5.2 |
Net cash utilized by investing activities | (41.1) |
| (15.5) |
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Cash flows from financing activities |
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(Decrease) in deposits | (10.8) |
| (32.3) |
Unrealized losses on securities | - |
| - |
Net cash utilized by financing activities | (10.8) |
| (32.3) |
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Net change in cash, cash equivalents and due from banks | (44.3) |
| (40.8) |
Cash, cash equivalents and due from banks at beginning of year | 124.1 |
| 154.8 |
Cash, cash equivalents and due from banks at end of year | 79.8 |
| 114.0 |
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Cash and cash equivalents - financial services | 10.1 |
| 14.1 |
Balances with Central Bank of Belize - financial services | 47.5 |
| 78.5 |
Due from banks - financial services | 21.6 |
| 20.4 |
Cash, cash equivalents and due from banks - corporate | 0.6 |
| 1.0 |
| 79.8 |
| 114.0 |