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From:TheBahamasWeekly.com New Providence
Nassau, Bahamas - Commonwealth Bank today reported an 11.8% increase in net profits from $29.2 million for the six months ending June 30, 2015 to $32.7 million for the same time period this year, crediting tight management of its loan portfolio and an improvement in net interest income. The results, released by Chairman William B. Sands, Jr. and welcome news for the all-Bahamian bank’s 6,000+ shareholders, reflected a long-established pattern of conservative lending practices and tight quality control of accounts. It’s a pattern that has paid off in several ways, not just in bottom line net profits and customer loyalty building, but a non-performing loan ratio that is far below the industry standard. “The bank continues to maintain good credit quality as indicated by our nonperforming loan ratio of 4.4% and continually outperforms the industry average of 14.19% at June 2016, as reported by The Central Bank of The Bahamas,” noted Mr. Sands. Total assets stood at $1.55 billion, an increase of 1% year-over-year, while total revenue increased by 6.3% to $78.3 millilon, nearly $5 million higher than the previous year. Net interest income increased by an even higher margin, 7.1%, ending the six month period at $70.9 million, or approximately $4 million higher than the comparable period in 2015. Since going public in the year 2000, Commonwealth Bank has paid regular dividends to shareholders on a quarterly basis, never missing a payment, and in recent years has added an extraordinary dividend annually. With branches in New Providence, Grand Bahama and Abaco and some 560 staff members, the bank has experienced record profits nearly every year and invested heavily in training including the recent opening of an $800,000 special pupose learning centre. The bank is also one of the leading contributors to community well-being and development with an emphasis on education in annual donations to various charitable, civic and educational organisations. “We are pleased to present these positive results to our loyal shareholders and are particularly proud that through staff dedication, prudent management and our conservative, low-risk approach to lending, we were able to achieve this performance in an economy that continues to present challenges,” said Mr. Sands. “With recent announcements, we cautiously look forward to an improving economy and associated higher levels of economic activity.”
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