IF A Channel Island bank’s performance was replicated by other local financial institutions, then the States might not be faced with a tax ‘black hole’. This is the view of Investec Bank (CI) Ltd chief operating officer Stephen Henry after he released its results for the year ending 31 March.

‘A four-year compound growth of 38% should more than exceed the growth requirements necessary to support the new zero-10 package,’ he said.

‘If the whole of the Guernsey finance industry achieved this growth, there would probably not be a tax ﾓblack holeﾔ.’

Profits after tax were £9.7m., a 22% rise on the previous year, while the balance sheet value increased by 56.7% to close at £1.35bn.

IBCI managing director Mort Mirghavameddin said the bank’s performance was partly attributable to its continued relationship with the Investec Trust company and the creation of closer links with other trust companies in the Channel Islands as well as other financial centres.

He also acknowledged the importance of recruiting the right personnel.

‘We continue to focus on attracting high-quality staff and have made a number of important appointments, which we anticipate will help to drive our business over the next 12 months,’ he said.

Chairman Hugh Herman said investment and development in the back office systems had allowed clients to benefit from online and real-time information on their finances. He also commended the efforts of the bank’s workforce.

‘This year’s results are a credit to the quality of our employees who deliver consistently high levels of service to our clients,’ he said.

‘I would also like to thank our valued clients for their contribution and we will do all that we can to retain and grow this loyal client base in the coming years.’