CFX in remarkable turnaround

CFX Merchant Bank which rose from the ashes of the Universal Merchant Bank had a net profit of $1.1 billion in its first nine months of operation.

The bank which inherited an accumulated loss of $800 million and was expected to turnaround in 18 months did so in nine.

According to its report for the year ending December, interest and discount income shot up from $35.2 million to $1.1 billion.

Net interest income recovered from a loss of $86.8 million to $606.1 million.

Fees and commissions rose from $6.9 million to $901.1 million while trading income rose from $1000 to $27.9 million.

Operating income rose from a loss of $78.5 million to $1.9 billion with net profit at $1.1 billion, up from a loss of $120.1 million.

The bank says it issued class A shares worth $543 million to depositors who were owed money by the bank intending to repurchase the shares within 4 years at an interest rate of 25 percent a year but it repurchased the shares within six months.

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