Nassau, Bahamas - Commonwealth Bank’s Total Profit for the three months ended March 31, 2014 was $13million and exceeded the same period in 2013 by 3.5%.

Total assets at March 31, 2014 were $1.46 billion which was slightly above December 2013 total assets of $1.43 billion. The Bank’s good performance is underscored by improvements in our Return on Assets and Earnings per Share ratios of 3.26% and $0.48 which exceeded 2013 by 3.5% and 4.2%, respectively.

Total profit improved primarily due to the quality of the Bank’s credit combined with its effective management of the same. As a result of the foregoing, Commonwealth Bank reduced its loan impairment expense in 2014 by 32.6% or $2.1 million compared to 2013. The reduction resulted from improved delinquency and nonperforming loan ratios. Commonwealth Bank’s nonperforming loan ratio of 4.07% continues to significantly outperform the industry average nonperforming loans of 15.97% at March 2014, as reported by The Central Bank of The Bahamas.

The Bank also continues to maintain strong capital and liquidity ratios with Capital Adequacy in excess of 25% and liquidity ratio of 36%. These ratios are well in excess of Central Bank’s requirements of 17% and 20%, respectively.

We are cautious about the prospects for 2014 as to date there has only been small improvement in the economy.

The Bank faces external obstacles that are beyond our control. In 2013, the Government increased business license fees significantly for banks. The increase for Commonwealth Bank in 2014 was nearly $5 million and this will be an ongoing charge. The Bank is also concerned about the financial impact of increasing taxation. We are pleased that the Government delayed implementation of Value Added Tax until January 1, 2015 and we await the final legislation. We are therefore monitoring developments closely including the budget debate to determine the impact on the financial services industry.