Richard Byles and his leadership team are placing the blame for this one, squarely at the feet of the Government and making it clear, that this is the result of operating in a crappy economy, with poor governance and political mismanagement!
The management of Sagicor Investments Ltd is reporting that their Q1 results for the quarter ending March 31, 2013, were significantly impacted by their voluntary participation in the government’s National Debt exchange. That’s a significant impact, half a billion Jamaican dollars! All of one quarter’s profit, gone, …just like that.
During Q1, 2013 Sagicor Investments voluntarily participated in GOJ’s National Debt Exchange (NDX). The par value of JA$ securities exchanged was $31.9 Billion. The par value of US$ securities exchanged was US$77.4 Million. We realized a one-time trading loss of $423 million in Q1, reduced interest income amounting to $71 Million in Q1, in addition to a reduction of gross interest income going forward, of approximately $57 Million per month.
For the three-month period, Net Interest Income was $717 Million compared to $752 Million in the prior year. Income earning assets was $76.9 Billion compared to $77.5 Billion in the prior period. Our Net Interest Margin contracted to 3.73% versus 3.88% in 2012, largely due to NDX.
Sagicor Investments is a subsidiary of Sagicor Life Jamaica and was last traded at $15.50 on the Jamaica Stock Exchange as at May 16, 2013.