Record profit for National Commercial Bank

National Commercial Bank ended its financial year to September with record profits helped by strong loan growth and big loan recovery of loans that were previously quarantined as doubtful.
The big Jamaican bank posted profit after tax and minority interest of $5 billion for an increase of 34 percent over the similar period in 2015 and a rise of 27 percent for the full year to $15.6 billion.
Earnings per share ended at $2.03 for the fourth quarter and $6.35 for the year. NCB recovered bad loan resulting in a positive flow of $291 million in the last quarter reducing the full year charge to $612 million compared to $1.8 billion in 2015.
Revenues net of interest expense rose 12 percent to $13.6 billion for the quarter and 9.6 percent to $52 billion for the full year. Net interest income grew 8.3 percent for the year to $28.1 billion. NCB results of a boost from Associated company profit, that rose from $122 million to $443 million in the September quarter and to $832 million from $434 million in 2015.
Loans, the critical contributor to revenue growth grew a strong 14.3 percent for the year to reach $189 million while investment securities declined modestly.
The group declared a dividend of 90 cents per share bring the full year payment to $2.25. The stock which remains IC Insider Buy Rated, last traded on the Jamaica Stock Exchange at $45.50 and is in strong demand with limited supply.