Sagicor Investments profit dips

Sagicor Investments net profits dipped to approximately J$1.5 billion during the financial year ended December 2012, an 11.7 per cent decline over the J$1.7 billion recorded the previous year.

Total revenue increased marginally to J$4.1 billion compared with J$4.0 billion in 2011.

However, Donovan Perkins, president and chief executive officer of Sagicor Investments said the results represent a credible performance in view of challenging market conditions.

“We made significant progress in growing our business in 2012,” Perkins said in a release on the company’s financials.

“We re-branded to Sagicor, significantly upgraded our branches in Montego Bay and Ocho Rios, and expanded our branch in Kingston, all to serve an expanding customer base across the island,” he added.

Net interest income for the reporting period increased by 3 per cent to J$3.02 billion compared to J$2.9 billion in 2011.

Non-interest income, which comprises fees and commission income, net trading income and other revenue, grew by 2 per cent to $1.10 billion for the year.

On the expenses side, staff costs grew to J$1.12 billion from J$1 billion, while occupancy costs increased by 19.36 per cent to J$151 million, up from J$126.5 million.

Other expenses climbed by 29.57 per cent to J$791.6 million from J$610.9 million, bringing total operating expenses for the reporting period to $2.1 billion compared to J$1.7 billion the previous year.

According to the company, the rebranding to Sagicor Investments from Pan Caribbean last year, which cost J$65 million, also impacted operating expenses.

However, Sagicor says it expects to reap benefits down the road from the exercise.

The company said it paid increased dividends for the year, with $725 million distributed compared to $705 million in 2011.

Sagicor Investments has assets totalling $88 billion at the end of its financial year.

The company last traded at $15.50 on the Jamaica Stock Exchange with its ordinary shares valued at $8.6 billion.

sabrina.gordon@gleanerjm.com