GlobalCapital says financial turmoil impacts earnings

GlobalCapital said today that the disruption caused by the international financial turmoil has continued to have an adverse effect on the fair valuations of its portfolio of financial investments and on demand for its products, leading to a decline in the earnings of its main divisions when compared to the same period in 2007. However, the property, agency and brokerage segments of the company are continuing to perform well.

"Notwithstanding the prevailing economic uncertainty the capital position of the group remains sound and the Board of Directors believe that the company remains well positioned to handle the challenging environment, and to enhance stakeholder value in the long term," GlobalCapital said in a regular announcement to the stock exchange.

It said that since the end of June, it had continued to focus on its strategy to improve operational efficiencies and to reinforce robust risk management practices and effective cost management, as announced in its interim directors’ report in August.

While the company had not proceeded with the acquisition of Mediterranean Bank p.l.c., it remained committed to adding banking to its existing business lines at the opportune time and under the right market conditions.