Dividend

Profit slows in Q3 at Scotia Group

September 9, 2024 by IC Insider.com

Profit grew just 7.5 percent in the July 2024 quarter even as revenues climbed nearly 19 percent, to $5.46 billion from $5.07 billion in 2023 at Scotia Group, increased provisions for loan losses and lower gains from foreign exchange trading helped to reduce the quarterly profit. For the nine months to July, profit popped 11.43 percent higher to $14 billion from $12.56 billion in 2023.
For the July 2024 quarter, other comprehensive income pushed total profit to $6.4 billion for the latest quarter versus $5.5 billion in 2023 and to $9.15 billion for the nine months after accounting for negative other comprehensive income of $4.85 billion and $9.17 billion in 2023 after negative other comprehensive income of $3.4 billion.
Total revenues climbed 18.7 percent for the quarter, to $17.3 billion from $14.49 billion and at a faster pace than the 15.65 percent increase for the year to date to $50.7 billion from $43.8 billion in 2024.
Net interest income rose a solid 18.5 percent to $11.85 billion in the third quarter of this year, from the same quarter in the prior year of $10 billion. For the nine months, Net interest income jumped 18.3 percent to $34.2 billion from $28.9 billion in 2023. Net fee and commission income inched from $1.65 billion in 2023 to $1.68 billion in the July 2024 quarter and from $4.94 billion in the nine months to July 2023 to $5.11 billion in the current year.
Net foreign exchange trading gains amounted to just $2.28 million in the July 2024 quarter, down from $2.47 billion in the previous year. The nine months came in at $6.84 million compared with $6.49 billion. Insurance activities delivered profits of $602 million for the latest quarter, up from $478 million in the previous year. For the nine months, it moved to $1.66 billion from $1.5 billion in the comparative period in 2023.

Scotia Group increased loan loss provision by 344% in July quarter.

Credit impairment losses jumped sharply to $858 million in the July quarter, from $480 million last year, but less than the $1 billion in the April quarter and $2.89 billion in the nine months, compared with $1.66 billion in 2023.
The various segments had mixed results for the nine months to July, with the Treasury banking generating a robust 29 percent increased revenues of $11.77 billion, up from $9.1 billion in 2023, with net results of $2.9 billion in 2024 compared with $2.64 billion in the prior year’s nine months to July. Retail Banking enjoyed a 12 percent increase in revenues to third parties of $16.8 billion contributing segment results of $2.64 billion, down from $3.4 billion from revenues of $15 billion in 2023. Corporate and Commercial banking had an 11.6 percent growth in revenues to $11.72 billion from $10.6 billion in 2023 with net segment results surging 25 percent to $10.5 billion in 2024 from $8 billion in 2023.
Investment Management had a moderate decline in revenues to $2.3 billion from $2.38 in 2023 and net results of $1.25 billion in 2024, down from $1.3 billion in 2023. Insurance Services delivered revenues of $3.25 billion in 2024, net results dropped to $3.2 billion compared with revenues of $3.48 billion in 2023 with net segment results of $3.1 billion.
Staff cost rose 12.5 percent to $2.97 billion from $2.64 billion and grew 12.8 percent to $8.88 billion for the nine months from $7.87 billion. Other operating expenses rose moderately to $3.4 billion in the quarter from $3.3 billion and inched up in the nine months from 9.7 billion to $10 billion. Total operating expenses increased by 11 percent to $7 billion from $6.39 billion for the latest quarter and 8.3 percent to $22.56 billion from $20.82 billion for the nine months to July.

Audrey Tugwell Henry Scotia group’s CEO

Loans, the most important contributor to income, grew 13.54 percent from $256.85 billion in July 2023 to $291.64 billion in 2024. The growth rate in the July quarter is consistent with that for the full year and should pick up with rates on Bank of Jamaica CDs now at the 7 percent level and well off for the peak earlier this year of nearly 12 percent. Investment securities moved by 12.7 percent from $157 billion to $177 billion this year. Customer deposits grew 6.4 percent to $472 billion. Shareholders’ equity ended the period at $132 billion, up from $113 billion at the end of July 2023, partially aided by reduced losses on investment securities from $3.2 billion to $687 million.
Earnings per share for the quarter were $1.75 and $4.50 for the year to date. IC Insider.com computation projects earnings of $6.50 per share for the fiscal year ending October 2024, with a PE of 6.6 times the current year’s earnings based on the last traded price of $43 on the Jamaica Stock Exchange.
The Group will be paying a dividend of 45 cents per share in October, an increase from 40 cents since last year, October and brings the total payment to $1.65 versus $1.45 for the similar period to October last year, for an increase of 13.8 percent.
Scotia Group is graded ICInsider.com BUY RATED with the stock currently severely undervalued, with good growth prospects going forward that will deliver an increasing flow of dividend income.

Filed Under: Breaking News, Buy Rated, Company News, Company Results, Feature Stories Tagged With: Dividend, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Profits, Q# profits, Scotia Group

Profit continues higher at Scotia Group

June 7, 2024 by IC Insider.com

Scotia Group had another financially successful quarter ending April this year, with profit climbing a solid 31 percent to $5.4 billion and earnings per share (EPS) of $1.74, up from $4.1 billion in 2023, with EPS of $1.32. For the six months to April, profit rose 14 percent to $8.54 billion with earnings per share (EPS) of $2.74, from a profit of $7.49 billion in 2023 and EPS of $2.41.

Scotia Group head quarters in Kingston.

Total comprehensive income climbed to $6.65 billion in the quarter from $4.79 billion in 2023. For the half year, it fell to $2.76 billion from $3.6 billion in 2023 as other comprehensive income suffered a loss of $5.78 billion in the 2024 period and $3.86 billion in 2023 as a result of an $11 billion increase in defined benefit obligations in 2024 and $9.3 billion in 2023.
Total revenues rose 20 percent for the quarter, to $16.9 billion from $14.1 billion and climbed a solid 18 percent for the year to date, to $33.3 billion from $28.3 billion in 2023. Interest income rose 18 percent in the April quarter to $11.7 billion from $9.9 billion in 2023 and 20.4 percent for the six months to $23.3 billion from $19.4 billion.
The critical and the single most important area of the group’s operation of lending helped to deliver a 17.6 percent increase in a net interest income of $11.24 billion in the second quarter of this year, from $9.56 billion in the prior year and, it rose 18.4 percent to $22.35 billion in the six months from $18.87 billion in the 2023 half year.
According to the group directors, “Our loan portfolio increased by $35.5 billion or 14.4 percent compared to April 2023, with loans net of allowances for credit losses increasing to $282.3 billion. Our core loan book continues to perform well with mortgages increasing year over year by 24 percent, consumer loans by 13 percent, credit cards by 15 percent and commercial loans by 8 percent.” Loans grew 2.2 percent in the January quarter over October, with the pace picking up to 2.25 percent in the April quarter over January, this year, for an annualized growth rate of 10 percent.
Deposits by the public increased by 6 percent or $27 billion to $464 billion. Investment securities increased marginally to $156.5 billion from $151.6 billion last year.
Net income from foreign currency trading, fees, commission and other income went up 22 percent from $3.6 billion to $4.4 billion in the April quarter and rose 14 percent from $7.7 billion in the half year in 2023 to $8.4 billion in the current year.
Insurance activities delivered profits of $530 million for the latest quarter, up from $493 million in the previous year. For the half year, it moved to $1.05 billion, from $1.03 billion in the comparative period in 2023. Foreign currency trading gains amount to $2.23 billion in the latest quarter compared with $1.94 billion in 2023 and for the year to date, $4.56 billion in the six months to April versus $4 billion in 2023.
Credit impairment losses jumped sharply to $1 billion in the April quarter from $665 million last year to $2 billion in the half year, compared with $1.75 billion in 2023.
Segment results show Retail Banking with revenues of $11.06 billion compared with $10.1 billion in 2023 and delivered segment profit of $1.6 billion versus $2.1 billion in 2023. Corporate and Commercial banking had a 13 percent growth in third party revenues to $7.9 billion and net segment results of $7.2 billion compared with revenues of $6.9 billion in 2023 as net results surged sharply over the $5.2 billion in 2023. Treasury generated revenues of $7.7 billion up from $5.8 billion with a net position of $1.13 billion in 2024 compared with $1.03 billion in the prior year.
Investment Management Services generated revenues of $1.5 billion and a net result of $780 million in 2024, with revenues of $1.56 billion in 2023 and a net outturn of $806 million in 2023. Insurance services had a mild increase in revenues to $2.08 billion in 2024 as net results slipped to $2.05 billion, compared with revenues of $2.45 billion in 2023 and net segment results of $2.15 billion.
Salaries and staff benefits rose 12.8 percent to $2.96 billion from $2.63 billion in 2023 and for the half year, it rose by 13 percent from $5.23 billion to $5.9 billion.

Scotia Group traded at a $58 on Friday.

Other operating expenses fell marginally from $3.28 billion to $3.23 billion in the quarter and increased slightly in the nine months to $6.7 billion from $6.55 billion in the previous year. Overall, total operating expenses moved from $6.57 billion in the second quarter last year to $6.78 billion. For the six months to April, it moved by 7 percent to $15.46 billion from $14.4 billion in 2023.
Taxation on profit amounted to $2.38 billion in the April quarter up from $1.89 billion in 2023 and it rose 15 percent to $4.47 billion in the half year from $3.89 billion in 2023.
Shareholders’ equity ended the period at $127 billion, up from $108 billion at the end of March 2023.
IC Insider.com computation projects earnings of $6.50 to $7 per share for the fiscal year ending October 2024, with a PE of 6.5 times the current year’s earnings based on the price of $44.41 the stock traded on the Jamaica Stock Exchange. Net asset value ended the period at $4.78 with the stock selling at xxx book value.
The company declared a dividend of 40 cents which in line with payment in April versus 35 cents in July 2023.

Filed Under: Buy Rated, Company News, Company Results, Feature Stories Tagged With: Dividend, Emerging markets, Emerging Stock, IC Insider BUY RATED, Jamaica Stock Exchange, Jamaican stocks, Scotia Group

Transjamaican heads for twice a year dividend?

March 19, 2024 by IC Insider.com

TransJamaican Highway Board of Directors approved an interim dividend payment of 9.43 cents per share that will be paid on April 24, 2024, to shareholders on record as at the close of business on April 3, 2024, with the ex-dividend date is April 2, 2024.
This is the first time since the listing of the shares in 2020, that an interim dividend is paid so early in the year, suggesting that the company is moving to a twice a year pay out. The dividend is just over half of the 18.66 cents that was paid in September last year, as the only payment in 2023. Combined the two dividends resulted in a yield of just over 20 percent based on the stock price of $1.36 in March last year. In addition, the stock price jumped 148 percent over the twelve months.
In discussion with a senior officer of the company, ICInsider.com could not get confirmation if the payment to come is an official move by the company to make dividend payments twice per year, but the recent move sends a clear message of twice a year payment.
What ICInsider.com gleaned is that they are still in discussion with the government to establish the terms of agreement for the Mandeville leg of the highway.

Filed Under: Company News, Dividends Tagged With: Dividend, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Transjamaican Highway

Caribbean Cement and poor management

June 7, 2022 by IC Insider.com

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Investors entrust capital to public companies with the expectation that their interests will be properly protected, but that does not appear to be the case with local investors at Caribbean Cement Company. Last year against to outcry of local investors the company rammed through fees for royalty to be paid in addition to management fees already be paid to Cemex, the ultimate parent company.

Caribbean Cement proposed a $1.50 dividend per share in August

Last month, the company proposed a meeting to consider the payment of a dividend that was not managed appropriately by the company, neither before nor after the meeting.
The Board of Directors Caribbean Cement Company advised shareholders that a meeting of the board that was held on May 26, 2022, recommended presenting an ordinary resolution to shareholders to declare a final dividend of $1.5032 per share payable on August 15, 2022.
That is a great development, considering the company last paid a dividend in 2004, but the wider public was deprived of such price sensitive information. To compound the problem, the company haled the meeting and kept the information for a week before communicating the decision to the exchange, even though the rules require immediate release of the decision immediately after the meeting.
In an article reporting the decision of the board, the company through its secretarial department took issue with the article stating that they seem to have breached the JSE rules that require that any meeting to consider the payment of a dividend must be communicated to the JSE at least 7 days ahead of the meeting. So far no such notification was posted on the Stock Exchange’s website up to Tuesday evening.
The company provides the evidence of two letters addressed to the Jamaica Stock Exchange notifying that a meeting would be held initially on May 23 another dated May 20 indicates a change in the date to May 26. None of these letters are yet on the Jamaica Stock Exchange’s website.
A spokesperson at the JSE confirms that the letters were in fact received but that it is the responsibility of the respective companies to ensure that the notice is uploaded to the JSE portal from which the relevant staff would approve the same to be uploaded to the website.
While the JSE was informed by letter technically, the company is in breach as they did not follow up to ensure the information was received and in fact posted to the website what was very sensitive information considering this is the first time that the company would be considering a dividend payment since 2004 when they last paid one amounting to 7 cents per share amounting to $60 million.
Based on the price movement in the market last week it appears that the information was already in the market.
While Caribbean Cement cannot escape responsibility for the matter not being communicated to its shareholders on a timely basis, The JSE cannot escape some blame either. Once the letters were received they should have followed up with the company since it was not on the portal.
No one seems to be following up on electronic communication in this modern era. The handling above, epitomizes, what seems like today’s communication practice that assumes once an email is sent, the other party must have read it, and therefore there is no need to follow up.
Cement traded at $67 on the 16 of May, the next day the last price fell to $64.80 and then to $61.50 on the 18, bouncing to $63 on May 19, but back to $60.51 on the May 24. On the 26 and the 27, the price moved up to $63 and moved to $69.70 on the first of June and traded at $66 on June 6, and jumped to $74 on the 7th.

Filed Under: Company News, Dividends Tagged With: Caribbean Cement, Dividend, Emerging markets, Jamaica Stock Exchange, Jamaican Stock, Jamaican stocks

Dividend payment lifts QWI stock 25% in days

February 16, 2022 by IC Insider.com

QWI Investments‘ shares gained 14 percent in 2021, with the price closing at 88 cents, a level it remained at until the company announced on February 8, the holding of a board meeting to consider a dividend on Valentine day, February 14, investors have since pushed the price over $1 for a rise of 25 percent at the high of $1.06 it traded at on Wednesday.
At the close of trading on February 7 the price close at 85 cents and ended at 90 cents the next day and closed at $1.01 on the 9^th.
At the board meeting, the company approved a dividend of 3.5 cents per share amounting to $47.78 million that will not be subject to taxation, payable on April 7. The board also approved and announced a dividend policy of paying out 20-25 percent of profits annually as dividends in two separate payments. The dividend to be paid is equivalent to just over 4 percent on the pre-announcement stock price and translates to an annual return of nearly 25 percent.
The stock has since climbed to $1.06 in trading on Wednesday morning the first day of trading after the information was disclosed to the Jamaica Stock Exchange, but closed at $1.04 after trading 3.26 million shares.
The gains in the stock since the initial announcement is 24.7 percent as a result investors in the stock before February 8, will enjoy a near 50 percent return if the price remains at these levels after the stock goes ex-dividend in mid-March.
The company continues to record gains in net asset value, with a record $1.56 on February 11, up 11.4 from $1.40 at the end of December and 16.4 from $1.34 at the end of September last year. That translates to a profit of $300 million after provision for taxation from September up to the end of last week and if is sustained would result in an additional payout. The announced dividend policy could be a major game-changer for the stock that has languished below $1 since eh decline in the market in 2020 as the dividend yield could make it an attractive income producer for investors.
The Chairman of QWI Investments is the principal of ICInsider.com.

Filed Under: Company News, Dividends Tagged With: Daily Trading, Dividend, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, QWI Investments

Profit jumps 33% at Carreras but..

August 2, 2021 by IC Insider.com

Sale revenues for the June quarter this year jumped 27 percent to $3.4 billion at Carreras, from a depressed $2.7 billion in 2020, with profit after corporate taxes surging 33 percent to $863 million from $651 million in 2020.

Carreras is one of Jamaica’s best dividend payers

The latest results, while looking impressive, have resulted mainly from a 27 percent fall in revenues in the 2020 June quarter from revenues of $3.458 billion in 2019. The 2021 profit is lower than the $923 million aftertax profit earned in 2019.
Cost of goods sold rose faster than revenues with a 30 percent increase from $1.37billion to $1.78 billion percent. Other operating and administrative expenses, including finance costs, rose four percent from $514 million in the 2020 quarter to $536 million.
The operations generated gross cash flows of $820 million, but after paying dividends of $1.2 million, resulting in a reduction of $786 million in cash on hand at the end of March. At the end of the quarter, shareholders’ equity stood at $1.75 billion, with lease financing at $251 million. Current assets ended at $3.47 billion, including cash and equivalent of $1.4 billion and Receivables of $1.56 billion. Current liabilities ended at $2 billion.
Earnings per share came out at 17.8 cents for the quarter, with ICInsider.com forecasting 80 cents per share for the year to March 2022, with a PE of 11.5 times earnings at the last traded price of $9.19 for the stock on the Main Market of the Jamaica Stock Exchange. The stock is now mostly regarded as a good dividend payer with a high yield of 8 percent, with profit hardly growing as the product it sells is not expected to enjoy much growth.

Filed Under: Company News, Company Results Tagged With: Carreras, Dividend, Emerging markets, Jamaica Stock Exchange, Jamaican stocks

NCB releases Q3 results next week

July 29, 2020 by IC Insider.com

NCB Financial Group advises that its board meeting to consider and approve the release of the nine-month unaudited financial statements at a board meeting scheduled for August 4, 2020.

NCB Financial Head Office

The company stated that further releases issued in April and May this year, they are confirming that a dividend is not likely to be declared at the meeting.
The group enjoyed a 41 percent increase in profit in its first quarter, but that fell in the second quarter, with a net profit of $13.4 billion for the first six months of the 2020 financial year. Net profit attributable to our stockholders was $9.6 billion, a 23 percent or $2.9 billion decline from the prior year. The preceding year’s results included a one off-gain of $3.3 billion from the disposal of our interest in an associate company. Excluding this gain, net profit would have increased by $408 million or 4 percent over the prior year.

Filed Under: Breaking News, Company News, Company Results Tagged With: Dividend, Jamaica Stock Exchange, NCB Financial Group

Scotia Group aiming to up profits

December 6, 2019 by IC Insider.com

Scotia Group headquarters in Kingston.

The 2019 fiscal year is turning out to be one of the best in recent times for the number 2 banking group in Jamaica – Scotia Group. The current year was not the best performing, but it delivered on many counts for the majority Canadian owned banking group.
Critically, the primary engine driving profits – loans, grew 12.6 percent, or $23 billion to $206 billion. According to the Managing Director, David Noel, “total loan growth remained strong throughout the period with a year over year increase of 13 percent. Highlights from our Retail Banking portfolio include a 17 percent year over year growth in our Scotia Plan loan portfolio. Our mortgage portfolio continued to perform well and grew 13 percent year over year as we continue to boast one of the most competitive mortgage rates in the market. Our total commercial loan book increased by 14 percent over the prior year. Of note, commercial loans to the private sector increased by 27 percent when compared to the same period last year.”
The group reports a net profit of $13.19 billion for the year to October, an increase of $419 million or 3.28 percent over the prior year. In 2018, the group booked gains on the sale of a subsidiary of $753 million, when this gain is excluded, net profit from ongoing operations increased by stronger 9.75 percent amounting to $1.17 billion.
Performance for the year was affected by lower net interest income due to declining interest rates and higher loan loss provision, following the adoption of a new accounting standard. Net interest income after expected credit losses for the year totaled $22.5 billion, down $767 million or 3.3 percent, compared to the prior year. Importantly, the group’s final quarter numbers show marked improvement in net interest income compared to the 2018 quarter. Net interest income delivered $6.4 million to the quarterly results compared to just $6 billion in 2018, while Net interest income after expected credit losses rose from $5.35 billion in the October 2018 quarter to $5.75 billion in 2019.
Scotia reports that “our credit quality remains strong and actual delinquency is down year over year, with loans on which there is no interest being booked for representing 1.77 percent of gross loans compared to 2 percent in the prior year.”
The Group reports, “operating expenses were also higher than the prior-year due partially to increased fraud-related expenses, as well as increased investments in technology and business optimization which we believe are necessary investments for the future.”
“We will continue to make investments in our infrastructure, including a $500 million investment to create a state of the art branch. Renovations have also begun at our head office building, where we are investing $1 billion to upgrade and modernize our facilities to create a more efficient and collaborative environment.”

Scotia Group’s Falmouth branch

Operating expenses for the year amounted to $24 billion for the period, an increase of $2 billion, or 9.54 percent compared to the prior year. Salaries and staff benefit costs increased by $697 million or 6.76 percent primarily due to increased incentives to the sales team resulting in the growth of in the loan portfolio, while other operating expenses grew by $1.37 billion. The growth in other operating expenses was attributable to increased technology investments such as ATM software, online banking enhancements, security chips for credit cards and network upgrade to support our digital strategy. Tax on assets increased by $45 million to $1.13 billion.
Segment results saw Treasury generating revenues of $8.2 billion up from $7 billion in 2018 with a profit of compared to $4.1 billion in 2018. Retail revenues grew to $18.9 billion up from $18.3 billion in 2018, with a profit of $3.6 billion compared to $4.9 billion in 2018. Corporate and Commercial banking saw revenues rise from $7.8 billion to $8 billion and profit hitting $1.4 billion in 2019 versus $2.75 billion in 2018. Insurance services grew revenues from $5 billion to $5.1 billion and generated a slightly higher profit of $3.97 billion from $3.8 billion in 2018. Investment Management generated revenues of $3.5 million and a profit of $2.3 billion in 2019 compared to $3 billion in revenues and profit of $1.8 billion in 2018. Other operations raked in revenues of $1.54 in 2019 with a profit of $1.5 billion, in 2018, revenues were just $1 billion with a profit of $965 million.
Other income for the year, other than interest income, increased by $3 billion or 17.97 percent over 2018. Net fee and commission income amounted to $8 billion, marginal declining of $22 million. Insurance revenues increased by $371 million or 12.64 percent to $3.30 billion due mainly to higher premium income year over year, partially offset by lower actuarial reserve releases, the group reported.
Net gains on foreign currency activities and financial assets amounted to $8.43 billion, up by $3.3 billion or 63 percent above last year due to increased market and trading activities. Deposits by the public grew to $313 billion, up from $288 billion in the previous year.
The Group’s shareholders’ equity stands at $118 billion from which the Board of Directors approved a final dividend of 55 cents per stock unit, or $1.7 billion, up from 51 cents per share in 2018. The current dividend is payable on January 15, 2020, to stockholders of record on December 24. The January 2020 dividend brings the total payment for the year to $4.76 after the group made two special dividend payments during the year.
The group reported earnings per share of $1.09 for the final quarter and $4.24 for the full year, earnings per share for 2020 should hit the $5 mark.
Scotia Group is a good stock for income and long-term growth.

Filed Under: Buy Rated, Company News, Company Results Tagged With: David Noel, Dividend, Scotia Group

NCB hikes dividend 29%

January 25, 2019 by IC Insider.com

NCB hiked dividend to 90 cents from 70 cents in 2018.

NCB Financial hikes dividend 29 percent, to $2.2 billion or 90 cents per share, as profit from ongoing operations jumped 40 percent in the first quarter to December last year to $5.7 million before taxation.
Profit after taxation and one-time gains, resulted in net profit of $7.4 billion for the first quarter of the 2019 financial year, slightly lower than the prior year’s results that included a gain (negative goodwill) of $4.4 billion relating to the acquisition of Clarien Group. Profit for the latest quarter, includes a gain of $3.3 billion from the disposal of 326,277,325 JMMB Group shares at $28.25 per share.
The strong improved results climbed on the back of 24 percent in net income, to $20.7 billion from $16.7 billion in 2017, offset by a 21 percent increase in expenses. Included in expenses is loan loss provision of $1, up from just $146 million in 2017 and seems tied to the need to adjust loan provisioning in line with new Accounting Standards. Depreciation and amortization cost almost doubled to $1.3 billion, from $667 million in 2017. Other operating expenses jumped 29 percent to $6 billion from $4.7 billion in the prior year. The big improvement in revenues flowed from increases in net interest income from $7.55 billion to $9.85 billion, an increase of 30 percent, while exchange trading delivered a third more, at $4.2 billion.
Retail and Small Business Banking segment profit grew a strong 36 percent to $1.34 billion, but Payment Services fell just 2 percent to $1.2 billion. Corporate Banking jumped sharply by 76 percent to $1.25 billion, Treasury and Correspondent Banking was up by just 14 percent to $1.65 billion. Wealth, Asset Management and Investment Banking, grew attractively by 39 percent to $1.2 billion, Life Insurance & Pension Fund Management rose 29 percent to $1.3 billion while General Insurance moved from a loss of $107 million to a profit of $227 million.

NCB giving back to the community.

The Group’s loans and advances, net of provision for credit losses, rose 16 percent to $373.5 billion. NCB stated that “the growth was driven by our Jamaican that increased by 22 percent or $50.4 billion. Non-performing loans totalled $18.5 billion as at December 2018 (December 2017: $15 billion) and represented 4.9 percent of the gross loans compared to 4.6 percent as at December 2017.” Customer deposits grew just 7 percent to $461 billion. The varied growth rate between loans and deposit is a strong positive for profit as the revenues climb faster than cost.
The group re-launched a revised take-over to acquire up to 32.01 percent of the outstanding shares of Guardian Holdings which, when combined with NCB’s existing 29.99 percent holding will bring the total to 62 percent. The profit of the group will get a further boost from this acquisition. IC Insider.com has updated the earnings per share for 2019 to $14 from continuing operations and with the stock price at $145, the PE is just over 10 times earning making the stock BUY RATED with a 2019 target price of $225.

Filed Under: Buy Rated, Company News, Company Results, Dividends, Feature Stories Tagged With: Clarien Bank, Dividend, Guardian Holdings, IC Insider BUY RATED, Jamaica Stock Exchange, Jamaican Stock, JMMB Group, NCB Financial Group, TTSE

JSE – directors cannot override AGM decision

January 24, 2019 by IC Insider.com

Palace Multiplex in Montego Bay.

Palace Amusement shareholders approved a dividend of $2 per shares at the annual general meeting held in December last year with the record date of January 7 and payment to be made on January 18.
IC insider.com was informed that the Jamaica Stock Exchange stopped the payment. In discussion with the JSE they indicated that the company did not comply with the rules of the exchange to inform them of the dividend. Accordingly, the change in dividend payment was to allow for the public to have notice of the ex-dividend date.
That of course is only partially true, while the company did not advise the exchange when the directors were to meet to approve the dividend and what was the outcome of the meeting. The exchange had adequate notice of the payment from October 31. The exchange JSE staff did nothing about the information that they got and approved for posting on their website.
The company’s directors’ report clearly states that the dividend had an xd dividend date of January 4 with the payment to be made on January 18. The annual report was posted on the JSE website from October. The directors, report along with the audited report were put to the meeting for acceptance which was done.

Andre Tulloch, head of the JSE regulatory arm.

Shareholders after approving the directors’ report, approved the resolution for the payment of the dividend, effectively agreeing to ex dividend and payment dates as set out in the directors report.
In the wisdom of the Jamaica Stock Exchange, they ignored the supremacy of the AGM and forced the company to submit information to change all the dates relating to the dividend. They failed to understand that the directors have no powers to change what the shareholders approved, and if a change is to be made, then the directors would need to call a general meeting to get shareholders to make the change. The correct remedy would have been some reprimand not a call for a non-legal action.
The requirements of the JSE is that any meeting at which a dividend is to be consider should be communicated to the JSE no later than 7 days before the date of the meeting and within 48 days of the meeting the decision taken. This was not done by Palace, but the JSE who had notice of the declaration from the end of October, did nothing about it for more than two months.
On 17 January, a posting on the JSE website showed that the record date was changed to January 31. The posting stated the “Palace Amusement (PAL) has advised that following decision made at their Annual General Meeting in December 2018, to pay a dividend of $2 per stock, the payment will be made on February 8, 2019, to the shareholders on record as at January 31, 2019, The ex-dividend date is January 30, 2019.”
The added problem is that shares were traded in January after the xd date of January 4. The seller would have expected to collect the dividend that was approved. It also means that cheques already drawn, may have to be redone, to record the new record date.
The JSE has clearly, made a huge error in this matter and should immediately correct it, to prevent a messy situation from getting worse. You cannot correct a wrong by another wrong.