Update | Click here to view NCB results posted on April 29, 2013
National Commercial Bank (NCB) is expected to release results today for the six months to March this year. This will be the first results for investors to assess the impact that the NDX debt swap of government’s bonds will have on profits. The expectation is for a big hit from the write down of the carrying value of the bonds that was in excess of the face value at which they were issued. At the end of 2012 NCB’s fair value reserves amounted to $1.8 billion. While all of this is unlikely to relate to government of Jamaica bonds, it gives an indication of the likely hit that could be taken against profits. The write down of the fair value reserves will be a one off event, more importantly, is whether the group will be able to adjust rates fast enough on various instruments it offers the public, to make up for lost income from government bonds that were swapped out for lower yielding bonds.
NCB is also expected to declare a dividend when the results are released. In March this year they paid 23 cents per share as dividend. It is unclear what amount will be declared today in light of the hit they took from the debt swap.
Other companies to release results shortly are Mayberry Investments, Barita Investments, Seprod, Grace, Sagicor Life and Sagicor Investments.
