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Somers boosted by third quarter net income

Better results: Somers Ltd, the owners of Bermuda Commercial Bank, has posted third quarter net income of $8.6 million

Financial services investment firm Somers Ltd has moved into a positive year-to-date position for its investments after a strong performance by Private & Commercial Finance Group (PCFG).

Somers recorded net income of $8.6 million in the third quarter, ending June 30, to give it a $1.2 million net income for the first nine months of its financial year.

By comparison, at the same point in 2014, Somers’ net income was $11.9 million.

The company continued to feel drag from the Bermuda Commercial Bank (BCB), which it owns, and Waverton Investment Management Limited. These two represent 79 per cent of Somers’ investment portfolio.

BCB reported a net income of $3.9 million, however its value decreased mainly due to a reduction in the value of its investment portfolio, according to a statement by Somers.

Waverton was impacted by lower earnings related to assets under management.

Somers reported that currency movements were positive in the third quarter, but are still in negative territory for the financial year to date.

Somers has a 68 per cent stake in Britain-based PCFG, which saw its share price appreciate following the announcement positive operating results.

Warren McLeland, chairman of Somers, said: “Somers enjoyed a strong third quarter with net income of $8.6 million. This brought our year to date net income to $1.2 million. NAV per share improved to $18.67 from $17.56 at March 31.”

In a statement, the company said: “On a year to date basis we have had a mixed performance from our portfolio. While PCFG has performed strongly, these gains were offset by reductions in the carrying value of our two largest holdings, BCB and Waverton.”

Somers has invested a further $4 million into Ascot Lloyd, an independent financial advisor with offices across Britain. The additional investment gives Somers a 44 per cent interest in the company.