The Bank of Barbados, along with the Financial Services Sector, has released the first update of the Financial Stability Report that analyses a range of financial stability indicators for banks and other financial institutions, as well as balance sheet and income and expenditure trends.

It said commercial banks and other deposit taking institutions remained profitable and well capitalized, although there continues to be some deterioration in credit quality.

“In response to the increase in credit risk since the onset of the crisis, banks have increased the level of provisioning, enhancing their capital buffer as a result. The major insurance companies were generally profitable although there was only modest growth in their Barbadian-based business.”

It said the major publicly listed insurance companies in the Caribbean were all profitable over the first quarter of 2012.

Sagicor Financial Corporation, the largest provider of insurance, recorded an increase in earnings to US$0.2 cents per share at the end of March 2012, compared to a loss of US$0.6 cents per share in the first quarter of 2011.

The Bank of Barbados said the improved performance was as a result of the absence of extraordinary claims impacting the company’s European business, which drove the 2011 out-turn.

Guardian Holdings Limited, the parent company of Guardian General Limited, reported a 16.7 percent increase in basic earnings to US$0.7 cents per share in the first quarter of 2012, with increased profitability across all segments of its business.

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