|2012 incorporations down slightly from last year|
|Written by JASON SMITH|
|Wednesday, 12 September 2012 13:06|
Virgin Islands trust companies incorporated about 1,600 fewer companies during the first six months of 2012 than during the same period in 2011, statistics show.
Though the 33,065 companies incorporated from January to June reflect a slight dip over the 2009 period, the figures are well above the recent low point in the first six months of 2009, when only 22,178 companies were formed.
According to the Q2 2012 statistics released Thursday by the Financial Services Commission, 15,200 companies were incorporated in the April to June period.
The rate of mutual fund licensing slowed as well. Twenty-two new mutual funds — 17 professional and five private — were formed during Q2 2012, compared to 50 funds — 44 professional, four private and one public — during Q2 2011.
Ten investment business licences were given out during Q2 2012, compared to seven during Q2 2011. As of June 30 there were 532 firms that hold investment business licences and 2,422 mutual funds in the territory: 1,621 professional, 641 private and 160 public.
The statistics also show that the territory’s banking sector suffered a major decrease in its profit margin. The aggregate figures for the sector in Q2 2011 listed banks enjoying a 61.15 percent profit margin. A year later that margin had shrunk to 38.57 percent. However, the quality of the loans the banks have on their books appears to be improving. Q2 2011 stats show that 7.03 percent of the banks’ loan portfolios were considered “non-performing,” but a year later the percentage of non-performing loans had shrunk to 4.67 percent.
Additionally, the statistics reveal that the FSC has significantly stepped up the pace of the onsite inspections it performs on the businesses it regulates.
During Q2 2011, commission officials inspected only one firm, a trust company. During the most recent quarter, six trust companies, three banks, three insurers, two insolvency practitioners and five investment businesses received inspections.