Signia Financial Group Inc. has reported a solid performance for the 15-month period ended December 31, 2011.
Compared to the 12-month period ended September 30, 2010, the company’s profit before tax increased by $1 million to reach $4.8 million.
In his report accompanying recently published financial statements chairman Geoffrey Cave explained that the company’s shareholders decided to change the financial year-end from September to December to better align with the reporting timelines of its related companies.
He said the group recorded increases in assets, deposits and earnings and has a capital adequacy ratio of 14.58 per cent, well above the regulatory minimum of eight per cent.
Cave noted that Signia’s loans and advances increased by seven per cent from $128.8 million to $138.1 million over the period due largely to an expansion of the retail lending portfolio.
“The company’s deposit base also enjoyed a healthy rise, closing the period $6.8 million higher at $135.2 million.
“The growth in the loan portfolio and the extra quarter incorporated in the results combined to produce net interest income of $10.9 million for the period ended December 31, 2011, an increase of $3 million from the previous year,” he said.
The chairman said monitoring and working to reduce credit risk continued to be a significant focus of the company in 2011.
“Reflecting the ongoing challenges in some areas of the economy, there was a greater level of provisioning for the period under review, resulting in a $996 000 increase in loan impairment losses to $2.2 million for the 15 month period.
Meanwhile, non-interest income also grew during the period with net trading and brokerage income advanced by $713 000 to $1.9 million for the period.
Cave said the company’s concerted efforts to maintain delinquency within targeted levels, as well as new initiatives being implemented to retain the company’s market share, will be important areas of activity in 2012.
Signia Financial was established in 2003 by Cave Shepherd & Company, United Insurance Company Ltd, and GraceKennedy Ltd. (NB)
