Commonwealth Bank half year profit up 11% to $28.8mn

The lender seen to weather economic storms as it continues to maintain strong capital and liquidity ratios.

Commonwealth Bank recently reported their earnings for the first half of 2011. Executive Chairman, William B. Sands, Jr., announced that the Bank’s Comprehensive Net Income for the 6-month period ended June 30, 2011 increased by 11.4% to $28.8 million, exceeding the same period in 2010. Total assets at June 30, 2011 were $1.45 billion, a 3% growth over June 30, 2010’s total assets of $1.41 billion.

“Our results for the second quarter validate our business strategy and demonstrate the hard work by all our staff members across the Bank in pursuit of that strategy. In the context of the present economic challenges, the results of the second quarter of 2011 represent a significant achievement for Commonwealth Bank." said Executive Chairman William B. Sands, Jr. "The Bank’s increased earnings were primarily associated with improvements in credit quality. Loan impairment expenses have declined by $1.7 million for the period. This was driven by a reduction in non-performing loans, which closed the quarter at 3.1% of the portfolio compared to 3.3% at the end of the first quarter of 2011.”

The Executive Chairman continued “Earnings per Share showed a healthy improvement over 2010 as return on common shareholders' equity increased by almost 13% to 26 cents per share, as did Return on Assets at 3.6% for the second quarter compared to 3.3% in 2010, an improvement of over 9%.”

The Bank continues to maintain strong capital and liquidity ratios well in excess of regulatory requirements which have placed the Bank in a strong position to meet the economic challenges experienced since 2008 to date.

View the full story in The Bahamas Weekly.