Caribbean Inv. Hldgs - Half-year Report

This announcement contains inside information.

CARIBBEAN INVESTMENT HOLDINGS LIMITED - HALF-YEAR REPORT

Belize City, Belize, December 16, 2020 -- Caribbean Investment Holdings Limited (London - AIM: CIHL; Bermuda - CIHL) (the "Company" or "CIHL")

HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2020

Despite the pandemic, CIHL delivered a net profit before non-recurring items of US$0.6m (2019 - net income of US$5.1m) for the six months ended 30 September 2020.

Interest income	Interest income for the six months decreased by US$1.7m or 11% due largely to minimal loan fees earned as lending was restricted during the period; additionally, interest reversals were recorded for two large commercial loans during the half year.
Non-interest income	Non-interest income decreased by US$1.6 million as the pandemic had significantly affected the flows of foreign currency thereby adversely impacting foreign exchange income as well as the cards business of the domestic bank.
Interest expense	Interest costs decreased by US$0.4m being a result of decreased interest rates on fixed deposits.
Credit impairment charges	Credit impairment charges increased by US$2.4 million reflecting the impact of revised IFRS 9 scenarios cognizant of the adverse impact of the COVID-19 pandemic.
Non-interest expenses	Non-interest expenses decreased by US$0.7m reflecting cost discipline measures introduced following the pandemic.
Non-recurring item	Prior year's results include a non-recurring item of $7.2 million resulting from the reversal of a liability previously recorded for share options which expired on 01 August 2019.

Financial Summary:

Caribbean Investment Holdings Limited
Financial Information
Consolidated statements of comprehensive income (unaudited)
US dollars in millions except per share data

Six months ended 30 September	2020	2019
Financial Services
Interest income	14.3	16.0
Interest expense	(2.1)	(2.5)
Net interest income	12.2	13.5
Charge of allowances for impairment of loans to customers	(2.9)	(0.5)
Net interest income after allowance for impairment of loans	9.3	13.0
Non-interest income	2.4	4.0
Non-interest expense	(8.1)	(8.8)
Operating income - Financial Services	3.6	8.2
Corporate
Corporate income	0.7	0.5
Corporate expenses	(1.8)	(1.6)
Operating loss - Corporate	(1.1)	(1.1)

Net income before tax and non-recurring items	2.5	7.1
Taxation	(1.9)	(2.0)
Net income before non-recurring items and before other comprehensive income	0.6	5.1
Non-recurring item **	-	7.2
Net income before other comprehensive income	0.6	12.3
Other comprehensive income:	0.1	-
Net gain on financial assets at FVOCI	-	-
Total comprehensive income	0.7	12.3

Income earnings per ordinary share (basic and diluted)	$ 0.01	$ 0.12


** On 01 August 2019, 6,999,997 in share options expired; the non-recurring item reflects the reversal of the related liability.

Caribbean Investment Holdings Limited
Consolidated statements of changes in shareholders' equity (unaudited)
US dollars in millions

	Called up
	share capital and	Treasury	Statutory	Retained
	share premium	shares	reserve	earnings	Total
	$m	$m	$m	$m	$m

At 31 March 2019	53.3	(21.7)	7.0	51.5	90.1
Accumulated other comprehensive income	-	-	-	-	-
Dividends	-	-	-	(7.0)	(7.0)
Transfer to statutory reserve	-	-	0.3	(0.3)	-
Net income	-	-	-	9.4	9.4
At 31 March 2020	53.3	(21.7)	7.3	53.6	92.5
Accumulated other comprehensive loss	-	-	-	0.1	0.1
Issuance of shares	17.1	-	-	-	17.1
Cancellation of treasury shares	(21.7)	21.7	-	-	-
Net income	-	-	-	0.6	0.6
At 30 September 2020	48.7	-	7.3	54.3	110.3

Caribbean Investment Holdings Limited
Consolidated balance sheets (unaudited)
US dollars in millions

At 30 September	2020	2019
Assets
Financial Services
Cash and cash equivalents	12.2	10.4
Balances with the Central Bank of Belize	47.0	45.6
Due from banks (net of allowances)	22.4	41.8
Investment securities	125.7	137.4
Loans to customers (net of allowances)	231.9	238.7
Property, plant and equipment	17.4	18.6
Due from Government of Belize (net of allowance)	38.7	40.4
Other assets	2.2	6.4
Total Financial Services assets	497.5	539.3
Corporate
Cash, cash equivalents, and due from banks	20.9	1.0
Other current assets	0.4	0.4
Total assets	518.8	540.7

Liabilities and shareholders' equity
Financial Services
Customer accounts	401.1	429.5
Lease liability	0.3	-
Other liabilities	6.6	7.8
Total Financial Services liabilities	408.0	437.3
Corporate
Current liabilities	0.5	1.0
Total liabilities	408.5	438.3

Shareholders' equity:
Called up share capital and share premium	48.7	53.3
Treasury shares	-	(21.7)
Retained earnings	61.6	70.8
Total shareholders' equity	110.3	102.4
Total liabilities and shareholders' equity	518.8	540.7

Caribbean Investment Holdings Limited
Consolidated statements of cash flows (unaudited)
US dollars in millions


Six months ended 30 September	2020	2019
Cash flows from operating activities
Net income	2.5	14.3
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation	1.3	1.2
Allowance for impairment on loans to customers	2.9	0.5
Changes in assets and liabilities:
Decrease in Government of Belize Receivable	0.8	0.8
Decrease in other and current assets	0.6	0.2
Decrease in other and current liabilities	(0.5)	(7.7)
Tax paid	(1.9)	(2.0)
Net cash generated by operating activities	5.7	7.3
Cash flows from investing activities
Purchase of property, plant and equipment (net of disposals)	(0.4)	(0.4)
Proceeds from sale of property, plant, and equipment	0.1	-
Increase in investment securities	(5.9)	(4.5)
Increase in loans (net of charge-offs) to customers	(1.1)	(2.3)
Net cash used in investing activities	(7.3)	(7.2)
Cash flows from financing activities
Decrease in customer accounts	(7.8)	(0.9)
Share issue	17.1	-
Unrealized gain on securities	0.1	-
Net cash generated by (used in) financing activities	9.4	(0.9)
Net change in cash, cash equivalents and due from banks	7.8	(0.8)
Cash, cash equivalents and due from banks at beginning of year	94.7	99.6
Cash, cash equivalents and due from banks at end of year	102.5	98.8
Cash and cash equivalents - financial services	12.2	10.4
Balances with Central Bank of Belize - financial services	47.0	45.6
Due from banks (net of allowances) - financial services	22.4	41.8
Cash, cash equivalents and due from banks - corporate	20.9	1.0
	102.5	98.8

For further information contact:

Caribbean Investment Holdings Limited

UK +44 (0)207 248 6700

Belize +501 227 7178

Cenkos Securities plc

Nicholas Wells +44 (0)207 397 8920

Note: This and other press releases are available at the Company's website: http://www.cihltd.co.

Background Information

Caribbean Investment Holdings Limited (CIHL) is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited (BBL) is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is one of the largest, full service commercial and retail banking operation with a head office in Belize City and eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.

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