A gradual improvement in the economic environment is reflected in Capital G Bank Ltd’s financial earnings released today, according to the bank’s statement.

Capital G, now a wholly owned subsidiary of the Clarion Group, made $3.6 million profit for the 12 months ending December 31, 2013 — up from $1.1 million the prior year.

Co-chief executive officer Ian Truran said: “2013 continued in the same vein as 2012, with the bank’s core operations performing well against the backdrop of a challenging economic environment. The investment in technology in 2012 and close examination of the way in which the bank functions has contributed to increased efficiencies and improved customer service across the organisation.”

The statement continued: “The core business continues to perform well, with net income increasing year-over-year by $2.5 million. Operating revenues, excluding securities gains and losses, increased $0.4 million to $60.3 million in 2013 from $59.9 million in 2012.”

The bank, now a wholly owned subsidiary of the Clarien Group Ltd, had total revenues before loan loss provisions which were $60.2 million compared to $61.4 million in 2012, while total operating expenses increased marginally by $0.2 million, to $48.5 million from $48.3 million in the previous year.

Mr Truran said: “The repositioning of certain areas of the bank’s balance sheet in 2012 has been maintained in 2013. Over 72 percent of the bank’s portfolio is now conservatively invested in US Government Treasuries and Agency securities, with the balance primarily in sovereign and supranational securities whereby the total portfolio is rated AA and above.

“Net interest income has decreased from the prior year by 1.4 percent, reflecting the reduced loan portfolio balances.

“Provisions for 2013 were $7.7 million, down $4.4 million, or 37 percent, from 2012, reflecting both a gradual improvement in the economic environment and the bank’s prudent management of its loan portfolio.

“Some borrowers still face difficult economic circumstances, and therefore the bank continues to work with its customers to support them through these challenging times while working to limit credit losses.”

Mr Truran further noted: “The bank’s capital ratios reflect the stability of the balance sheet.

“Our total capital ratio of 14.84 percent is consistent with prior years. Tangible common equity improved from 5.61 percent to 5.89 percent at the end of 2013.”

The co-CEO added: “The bank remains focused on its customers and on the effective management of its capital to maintain the strong and prudent positioning of its balance sheet. Capital will be redeployed as necessary to enable further growth of the institution particularly as it relates to the expansion into global markets. There were encouraging signs in 2013 as the bank has begun to see the rewards of the vigilant approach adopted during these difficult times.”

The statement continued: “Capital G Bank sees itself as an important part of the Bermuda community and remains committed to being a first-class financial institution on the island while also using Bermuda’s strong, well-positioned platform to grow globally.”

Useful website: www.capital-g.com.