From Morning Star UK

LONDON (Alliance News) – Caribbean Investment Holdings Ltd on Wednesday reported a drop in profit due to an unfavourable court judgement.

Caribbean Investment is a holding company and has no business outside its subsidiary investments, which include Belize Bank Ltd.

The firm’s pretax profit for the six months ended September 30 was USD8.7 million, down from GBP11.2 million the year before.

The London Court of International Arbitration awarded BZD37.0 million, or GBP14.5 million, to Caribbean Investment at an interest rate of 17% per annum. A Caribbean court judgement subsequently lowered that interest rate to the statutory rate of 6%.

Consequently, Caribbean Investment’s interest income during the period shrank to USD16.3 million from USD20.8 million.

The firm’s allowance for loan losses was USD1.3 million, slightly below its USD1.4 million loan loss allowance the year before.

“Similar to prior year’s results, the allowance for loan losses reflects a credit balance as the company reported a reversal of allowances for the six months ended September 30,” said Caribbean Investment.

This was attributed to “better than expected recoveries from the sale of collateral”.

Shares in Caribbean Investment closed down 5.6% on Wednesday at 16.05 pence.

By Anna Farley; [email protected]

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