Sagicor Group Jamaica had mixed financial performance during the January to June period as it grappled with the effects of the COVID 19 pandemic.
It says a high degree of uncertainty exists with the possibility of a second wave of infection having a longer and more debilitating effect on economies worldwide.
Sagicor's net profit amounted to $4.36 billion compared to $6.39 billion during the same period last year, while total revenue declined by $3.7 billion to $38.85 billion.
During the six months Sagicor recorded substantial expected credit losses on its portfolios of loans and domestic and international investment securities.
Hotel revenue was also deeply impacted by the worldwide collapse of the tourism market, resulting in declines in the valuations of its hotel businesses.
However, Sagicor recorded a 20 percent increase in net premium income which amounted to $25.36 billion.
Net investment income was also 12 percent better at a little over $9 billion.
And despite the adverse effects of the pandemic, Sagicor's operating cash flow increased by $2.48 billion dollars and the group continues to maintain strong liquidity by improving its cash position by $6.63 billion.
Meanwhile, Sagicor says its commercial banking arm contributed net profits of $720 million during the period which was a 31 percent reduction when compared to 2019.
Sagicor Bank's results were severely impacted by higher expected credit losses on loans as a result of the impact of COVID-19 on tourism, entertainment and energy sector loans and the slower than expected recovery of the economy.
Fee based income of $1.94 billion was 3 percent more than the prior year despite being limited by payments channels and credit card business slowing due to the decline in activity caused by COVID-19.
All feeds
