Debt provisions take wind out of JCG, Winton sails
Deposit-taking JCG Holdings and its principal subsidiary Winton Holdings (Bermuda) saw poor results in the year to December 31, hit by provisions for bad and doubtful debts.
Attributable profit for JCG tumbled almost 39 per cent to $254.33 million whereas Winton plunged to a $154.12 million attributable loss from a $50.19 million profit in 1997.
Joining JCG in money lending and hire purchase financing about one year ago, Winton incurred a $199.58 million provision for bad and doubtful debts.
JCG did not fare better, with the provision widening to $344.87 million from $70.83 million.
Of the provisions, JCG said specific charges soared to $318.8 million from $41.86 million.
Both JCG and Winton's turnover plunged 66.42 per cent to $434.79 million.
JCG's overdue advances for six months to one year increased sharply to account for 3.9 per cent of total advances, compared with 0.5 per cent previously.
Advances include property mortgage loans and taxi financing loans.