Published: 26 August 2013

Financial institutions have remained profitable despite prevailing liquidity challenges and uncertainties over capital thresholds.

Of the five banking groups that have released their earnings in the current reporting season, Barclays, MBCA, ABC Holdings and FBC Holdings have all seen increases in profits, except CBZ Holdings where earnings slowed but remained strong.

The profits were largely driven by core banking activities, as interest income surged, a far cry from five years ago during the hyper-inflationary era where speculative investments drove earnings.

Heavy impairments charges, high operating costs and high interest expense watered down earnings in some firms like CBZ and Barclays.
- sundaymail

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