BDA Commercial Bank: Net Profit of $1.18 Million
Bermuda Commercial Bank today [Nov 15] reported a net profit of $1.18 million for the financial year ending September 30, 2010.
During the year ended September 30th, 2010, the Bank recorded a net unrealized loss of $1.86 million within other comprehensive income compared to a gain of $1.81 million for 2009. The 2010 loss resulted primarily from a reclassification for investment gains included in the income statement. The Directors have approved a dividend of $0.10 per share, payable on November 30th 2010.
Chairman, Mr. Michael Collier stated that “the Bank has returned to profit in the second half of the year largely as a result of investing the Bank’s own capital in a portfolio of international bonds. The Bank’s profit for the year was $1.18 million, compared to an operating loss of $0.38 million for the prior year.”
In addition to increased interest income on the bonds the Bank also realized gains following the sale of a portion of the investments during the year. These gains offset the reduction in interest income on the remainder of the Bank’s assets, primarily cash and money market funds, which reduced in line with global interest rates.
The full 4-page statement is below, click ‘Fullscreen’ for greater clarity:
Get the right accountants these days and anything can look good even if it’s not. It’s all a numbers game!!!
Actually they run a pretty tight ship over there. One of the few financial institutions on the island that don’t gamble with risky invesments.