ANSA Merchant Bank delivered its second highest recorded profit before tax of $262.2 million last year. The company's annual report for 2014, which is now available to shareholders online, shows that total assets increased by nine per cent year-on-year to $6.6 billion, with liabilities of $4.8 billion and equity of $1.9 billion.
Chairman Anthony N Sabga said the bank group also delivered its highest recorded earnings after tax–a 15 per cent increase year-on-year to $161 million. He said general insurance company Tatil had maintained its "growth trajectory" with a 13 per cent increase in gross written premium income and ten per cent on a net earned basis.
"The life insurance company, Tatil Life, continued to strengthen its underwriting practices resulting in a reduction of net benefits and claims costs by 8 per cent, while policyholders' liabilities grew by 8 per cent," Sabga said.
"This credible performance was achieved despite unfavourable investment market conditions which resulted in modest investment income particularly affecting the life insurance subsidiary."
The success of the bank's lease, hire purchase and In-One products resulted in a 22 per cent increase in net income year on year on its asset finance business and the portfolio surpassed $1.2 billion.
"Our delinquency ratio was maintained below one per cent as in 2013 and ranked among the best in the market, reflecting the strong credit quality of the portfolio," Sabga said.
The bank group's managing director Gregory Hill said there had been improvement in core earnings in all product lines, driven by "a combination of revenue growth and efficient cost management, against a backdrop of cautious risk management."
Commenting on the group's performance Hill said: "While the banking and general insurance operations performed credibly again, the life insurance business faced bearish local equity markets as the TT Composite Index delivered negative price results, after the bull-run in 2013.
"This was coupled with adverse foreign exchange translation valuations due to the revaluation of the TT dollar in view of the Central Bank of Trinidad and Tobago Monetary Policy and Foreign Exchange Strategies."
Hill said subdued foreign investment returns were due to depressed foreign fixed income yields and volatile equity markets, as the global markets responded to the adverse geo-political events in Russia, the slowing of the Chinese and European economies and the decline in oil and energy related prices.
However 2014 saw another year of improvement in core earnings in all the group's product lines, "driven by a combination of revenue growth and efficient cost management, against a backdrop of cautious risk management."