When Trinidad’s First Citizens Bank stock price hit $41.54 on Friday 10th January, investors who bought shares at the initial public issue price and held until this week doubled their money in just over 5 months. The stock price gained 89 percent from the initial IPO price of $22 per shares in August. The bank declared a $1.09 per share final dividend to be paid January 24, to shareholders on record as of December 31, 2013, the Ex-dividend Date is December 27.
The dividend equivalent to a 12 percent rate of return on the IPO price, when added to the return of the stock price for persons, who got shares at the IPO price and held, have seen a 100 percent gain on their investment.
The dividend policy of the First Citizens Bank enunciated in the propectus is to distribute to its ordinary shareholders funds surplus to the operating capital and strategic requirements of the Group, as determined by the Directors, with an annual target dividend pay-out percentage range of 45 to 55 percent of net profit after-tax. The 2013 dividends translates to around $273 million versus $263 million paid for 2012.
The bank reported profits of $742 million before tax and $606.5 million after tax compared to 2012 pre-tax profit of $714 million and $446 million after tax but the big increase after tax is due to tax adjustment in 2012 that depressed the after-tax profit. Based on the 2013 results IC Insider return the stock to the BUY RATED list and project the stock price to exceed $50 per share during the course of 2014.
First Citizens Bank is an ICInsider Buy Rated stock. To view the full list, click here.
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[…] and the natural gasoline is marketed internationally. In 2013, the government sold off a part of First Citizens Bank to the public with the shares being listed on the Trinidad and Tobago Stock exchange and providing […]