Genesis could be in for another high jump

Genesis Financial Holdings could be in for another high jump this year. The banking group, which was under curatorship for most of 2002,only made a net profit of $691.4 million last year.

Though this was a 2151 percent increase from the previous year, the financial services sector has changed dramatically since the announcement of the new monetary policy in December.

Merchant Banks are now required to have a capital base of $7.5 billion by the end of September.

Shareholders funds only stood at $2.1 billion at the end of last year while the bank’s total assets were $13.1 billion.

But the bank had a capital adequacy ratio of 24 percent at the end of the year. The minimum requirement is 10 percent.

According to the results the bulk of the bank’s income came from interest income which brought in $8.1 billion up from $1.2 billion.

Net interest income improved from $369.6 million to $1.6 billion.

Dealing profits improved slightly from nearly $9 million to $51 million while other income brought in $209.1 million, up from $104.7 million.

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