Hand-in-Hand Trust Corporation Inc last year recorded an after-tax profit of $14,521,654, after recovering from a challenging 2009, when it registered a loss of $904,490,277 on the back of the writing off of impaired Allen Stanford investments.
The corporation’s financial statements were placed in Saturday’s edition of the Guyana Chronicle and are up to the end of December, 31, 2010.
Commenting on the institution’s financial statements, Chairman of the Board Paul-Chan-A-Sue said that an operational profit of $62.7 million was made before the write off of impaired investments. It is unclear what these impaired investments are. After the write off of $27,742,748, a profit of $34,961,658 was recorded. The institution was taxed $20,440,004.
Last year, the company had an operational profit of $74.6 million before the write off of the impaired investments. Impaired investments for last year were $968,943,719.
Meanwhile, according to the financial statements, at the end of 2010 the gross income for the period was $486,095,314 of which $376,349,721 was interest from income. The remaining income of $109,745,593 was classified as “other”. The total expenditure was $423,390,908. Of this amount $249,780,230 was interest expense while operating expenses were pegged at $219,413,755.
The institutions assets decreased from $6.7 billion in 2009 to $6.6 billion at the end of the financial year. Cash resources at the end of last year totalled $2,478,381,428 and investments were $3,489,648,912.
The total deposits held by the institution were $5.8 billion at the end of the reporting period.
According to Chan-A-Sue, “several initiatives were pursued to enhance the viability of the institution and shall be continued during the current financial year”.
Back in 2009, the Hand-in-Hand Group of Companies lost its investment of over $1 billion in the Antigua-based Stanford International Bank (SIB), after the bank folded. The company said then that the “impairment” of its investment would not affect its operations. The company also indicated that it would make efforts to restore its capital adequacy ratio.
