INVESTEC Bank (Channel Islands) Ltd has recorded its fifth consecutive year of profit growth. In announcing results for the year ended 31 March, IBCI, which is part of international banking group Investec plc, has seen a 33% increase in profits after tax to £14m., a 14% increase in client deposits to £1.456bn and a 17% increase in its loan book to £428m.

The results put the company in a good position to recover revenue after the introduction of the zero-10 tax regime.

‘We are delighted to say we have also attracted several local trust companies to the bank, increasing deposits by £124m., and we now work with more than 50 intermediaries across the Channel Islands,’ said IBCI managing director Mort Mirghavameddin.

In May, the bank extended its operations by opening a branch in Jersey, where it is now establishing relationships with the fiduciary sector and corporate clients.

‘In a climate where both governments in the islands are looking closely at how they fill the black hole when we move to the zero-10 taxation system, we are delighted to be able to take a lead position and demonstrate that a focus on developing close relationships with existing clients and actively seeking new ones is a recipe for sustained success.

‘It is our ability to develop distinct offerings to serve the needs of local and international clients that makes us attractive and it is the islands that will benefit if others in our industry can sustain a similar pattern of growth.’

Alan Tapnack, newly appointed as chairman of IBCI, said the results were a credit to the management and employees.

‘We believe that our low staff turnover is partly due to the distinctive Investec culture, which fosters an entrepreneurial attitude and top performance.

‘Looking ahead, we continue to invest heavily in our back-office systems and are confident of being able to implement smoothly the Basel II regulations, which come into effect from 1 January.’