Scotia hikes dividend

December 16, 2018 by

David Noel new Scotia Group’s CEO.

Scotia Group delivered below par performance in that final quarter of the 2018 fiscal year, with profit falling to just $1.6 billion from $3.36 billion in 2017.
The quarterly results, however, is not an indication for what can be expected for the 2019 fiscal year as one time fall in revenues and in some cases, expenses are unlikely to be reflected for the full year to come. In keeping with expected pick up in profit the banking group hiked their dividend from the usual 48 cents per share to 51 cents in their latest announcement. Based on Scotia’s long held policy, when dividends are raised it is usually an indication that future dividend payments will continue at the elevated level for the ensuing period. Investors in the stock can therefore look forward to at least $2.04 cents for all of 2019. That will be a return on the latest stock price of $54.01 of 3.8 percent. Dividends paid in 2018 amounted to $1.92 per share. The total amount of dividends to be paid in January will be $1.59 billion which is alomost all the profit reported for teh quarter. The dividend will be paid on January 18, 2019, with the ex-dividend date set for December 24.

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Record profit for NCB Financial

November 8, 2018 by

NCB had a good 2018 fiscal year with strong profit gains.

NCB Financial Group recorded record net profit of $28.6 billion for the financial year ended September 2018 with net profit attributable to the group’s stockholders of $28 billion, an increase of 46 percent or $8.9 billion over the prior year.
Based on the results an interim dividend of 70 cents per ordinary stock unit will be paid on December 7, to stockholders on record as at November 23, 2018.
Importantly, loans and advances, net of provision for credit losses, grew by 70 percent over the prior year to $372.6 billion, but was helped by the acquisition in 2017 of the majority shares and the consolidation of Clarien bank in the group financial. The inclusion in the group’s financial increased the portfolio by over US$700 million the company indicated. For the year, “there has been sizeable growth in the Jamaican loan book totalling $56.1 billion”, the company said. In addition, credit card receivables increased by 14 percent and the Cayman portfolio grew by 67 percent. Non-performing loans totalled $18.2 billion at September 2018 (September 30, 2017: $5.4 billion) and represented 4.8 percent of the gross loans compared to 2.5 percent as at September 30, 2017. This increase was due to the inclusion of Clarien which has a non-performing loan ratio of 11.8 percent.
 Customer deposits increased by $196.4 billion or 68 percent, to $484.8 billion, again primarily driven by the consolidation of Clarien which has deposits in excess of US$1.1 billion. The Jamaican deposit taking segments accounted for a total combined increase of 18 percent, the report to investors stated.
According to the directors of the group “for the financial year, operating income grew by 29 percent or $17.1 billion, to $76.5 billion. The growth in income was primarily driven by: Gains from foreign currency and investment activities increasing by 102 percent or $7.9 billion, resulting from an improving macro-economic environment coupled with high levels of JMD liquidity and declining interest rates generating a high demand for debt securities. Increased net interest income of 18 percent or $5.4 billion. The improvement was primarily attributable to the consolidation of Clarien’s results and growth in the Jamaican loan portfolio. Net fee and commission income growing by 15 percent or $2.1 billion. $1.1 billion of the increase was due to the consolidation of Clarien. The improved fees earned by our Jamaican entities were driven by an increase in the number of corporate finance, investment and financing solutions offered by NCBCM. There was also growth in fees earned by our payment services, retail and SME segments stemming from increased e-commerce and credit transactions. A 14 percent or $1.1 billion increase in premium income.”
Profit for the last quarter was $7.3 million attributable to shareholders resulting in earnings per share of $2.97 with mots of it earned from ongoing operations. For the full year EPS is $11.39 and is swollen by approximately $2 from non-recurring gains. NCB seems on target to report earnings in the $12 region for 2019. The stock traded up to $135 on Thursday and last traded at $133 for a PE of 11 times 2019 estimated earnings. With the markets PE around 15 times 2018 earnings the stock should be trading in the $175 to $200 range by the end of 2019, with dividend payments adding close to $4 to the pot. NCB Group is set to benefit from a growing Jamaican economy for some years to come and is therefore a good medium to long term investment.

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2c for Honey Bun’s shareholders

May 8, 2017 by

Honey Bun, at a Board of Directors’ meeting held on May 3, declared an interim dividend of two cents per share payable on June 1, to shareholders on record as at May 17.
The stock will start trading ex-dividend, on May 15, 2017. The company last paid a dividend of 2 cents on January 9, 2017, in June 2016 the company paid 3 cents per share in dividend. The stocks traded at $7.80 at the close on Friday, following half year’s results that are lower than in 2016.

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$1.5B for NCB Group shareholders

April 27, 2017 by

NCBFG paying 60C in dividend in May.


NCB Financial Group approved an interim dividend of 60 cents per ordinary stock unit at its board of directors meeting on April 27. The dividend will result in a total payment of $1.48 billion.
The dividend is payable on May 29, 2017 to stockholders on record as at May 12, 2017. In 2016, NCB paid a dividend in December of 90 cents per share, that brought the full year payment to $2.40 for a pay-out of 38 percent of profit. In January this year, a dividend of 60 cent was paid to shareholders. On May 27, last year, an interim dividend of 50 cents per share was paid to the group’s shareholders. This year’s payments come against a 58 percent jump in profit over the prior year to March to $9.5 billion.
In trading on the Jamaica Stock Exchange, the group’s stock traded at $63.75 and at TT$3.99 on the Trinidad Stock Market.

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Dolphin Cove another 2017 dividend

April 27, 2017 by

Dolphin Cove shareholders are in for another early 2017 dividend, as the company’s directors at a meeting held on April 25, approved an interim dividend of Twenty Cents per share payable on Tuesday, May 30, to shareholders on record on May 10.
The upcoming payment brings the payment for 2017 to 40 cents as the company paid an interim dividend of 20 cents per share on April 4, 2017. Based on the latest proposed payment, the stock will trade ex-dividend on May 8.
The company paid dividends of 20 cents per stock unit in May, August and November last year. The stock last traded at $20.08 on the junior market of the Jamaica Stock Exchange and is up from $15.50 at the start of 2017.

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Sagicor Group ups dividend

April 6, 2017 by

Sagicor Group Kingston head quarters.

Shareholders of Sagicor Group Jamaica are set to enjoyed an increase in the dividend for 2017 as the group has just announced an increase of 4 cents over the amount paid for the similar period in 2016.
The group in declaring the first dividend of 2016 has set a later date for payment than in 2016 with the a payment of Seventy Cents per share, payable on May 5, to shareholders on record as at April 24. The ex-dividend date will be April 20.
Last year Sagicor paid an interim dividend of sixty-six cents per share on April 19 and on November 25, 2016 an interim dividend of Forty-five Cents was paid, for a total for the year of one dollar and one cent or just under 35 percent of the profits.
Last year the company reported profit attributable to stockholders of $11.26 billion up 15 percent from the $9.79 billion earned in 2015, with earnings per share ending at $2.90 for 2016. Total revenue for 2016 amounted to $59.7 billion up from $55 billion in 2015.
The company’s shares closed trading on the Jamaica Stock Exchange on Thursday at $34, and is up from $23.10 at the same time last year, for a gain of 47 percent, just below the movement in the all Jamaica index of 47.5 percent, over the similar period.

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Profit jumps 81% for Kremi

July 13, 2016 by

Kremi GapntProfit jump 81 percent to $71 million for Caribbean Cream in its latest quarter to May this year, the company reported, from a rise of 9 percent in sales to $316 million resulting in earnings per share of 19 cents.
Gross profit climbed faster than revenues by 24 percent to $138 million as production cost dipped slightly to $177.5 million from $178.4 in 2015, as the company continues to benefit from lower prices of sugar and milk based major production ingredients and from energy savings.
Administration cost declined by $2 million to $54.3 million while selling and distribution cost came in at $10.8 million from $11 million in 2015 and finance costs fell to $3 million from $4.6 million as the amount of loan funding declined from $140 million to $120 million, Gross cash flow amounted to $85 million up from $53 million in 2015. Having funded loan repayment and acquisition of fixed assets, the cash inflows helped push cash at the end of 2016 quarter to $194 million, from $50.75 million at the end of May 2015. Shareholders’ equity climbed to $509 million at the end of the quarter.
The company has declared an interim dividend of 5 cents per share or $19 million payable in September. The stock traded at $5.50 but should head higher with earnings projected by IC Insider at $1 per share for the full year.

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JMMB Group reports increased profit

May 31, 2016 by

JMMB Group reports 12.3% increased 2016 profits

JMMB Group reports 12.3% increased 2016 profits

JMMB Group reports improved profit of 12.3 percent for the year to March 2016, of $2.3 billion, versus $2.05 billion in 2015 or earnings per share of $1.39.
The improvement flowed from increased net operating revenue net of interest expense of $11.42 billion from $10.32 billion in 2015 but increased cost helped keep the net position down as cost rose sharply by 12.8 percent to $8.78 billion from $7.79 billion in 2015.
Helping in the growth is an improvement in net interest income of $5.5 billion versus $5.26 billion in 2015 and a big jump in net gains on securities trading of $4 billion up from $3.4 billion in 2015.
The company’s stock trades at $9.50, down from $9.99 from Monday’s closing price, in the morning session on the Jamaica Stock Exchange today. The stock now trades at a PE of 6.8 times the 2016 earnings.
The company recently, declared a dividend of 18 cents per ordinary share, to be paid on June 30, 2016 to shareholders, on record as at June 10.

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Stock split revs Pan Jam’ stock not profit

May 23, 2016 by

pan_jamaican_logo280x150Pan-Jamaican Investment Trust (Pan Jam) recently announced a proposed 5 for 1 stock split which sent the stock flying to $125 from below $90. The company also announced a second dividend for the year with the stock trading ex-dividend on May 27. The dividend is for 75 cents per share, payable on June 22, to shareholders on record as at May 31.
The latest payment makes the second dividend of the same amount in March this year. In June 2015, the company paid a dividend of seventy cents per shares.
Pan Jam also advised that on May 13, four members of the management team were issued stock grants under the Long Term Incentive Plan totaling 242,691 shares.
The group reported net profit attributable to owners for the quarter ended March of $721 million, up from $542 million in the 2015 first quarter, an increase of 33 percent. Earnings per stock unit amounted to $3.44 compared to $2.59 for the same period in 2015. Earnings from ongoing operations seem headed for $15 per share for this year.
Performance for the quarter reflect a gain of $185 million arising from the divestment of shares in Hardware and Lumber and an increase of $149 million in the share of associated company and joint venture companies’ results. These more than compensated for decreases of $43 million and $84 million in property and other income respectively.
Property income was reduced by lower rental income as a result of a reduction in average occupancy from 85 percent in March 2015 to 81 percent in the current year as well as reduced booking of property revaluation gains. In the first quarter of 2015, other income increased by a one-off lease buyout amounting to $87 million. Operating expenses increased principally as a result of pension costs related to the reorganisation of the group’s pension arrangements as well as amortization of new property management software. Operating expenses rose to $288.59 million from $259.57 million while Finance costs rose sharply to $130 million from $94 million.
Total assets amounted to $28.3 billion at the end of March while stockholders’ equity increased to $22.4 billion, equating to a book value per stock unit of $106.86.
Since Pan Jam announced the stock split, the stock rose to $125 on the Jamaica Stock Exchange, up from $88 at the beginning of May.

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Profits up 18% at Eppley

April 30, 2016 by

eppleyThe insurance premium financer Eppley, reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. The profit resulted in earnings per share of $13.27 in the first three months to March this year.
The improved results emanated from interest income of $43 million, down from $44.94 million in the first quarter of 2015 while net interest income ended at $15.4 million compared with $15.95 million in the 2015 quarter. Other operating income ended at $11.64 million from $5 million in 2015.
Administrative expenses climbed a big 34 percent to $16.48 million from $12.3 million.
The Board approved a dividend of $9 per share payable on April 20 to ordinary shareholders on record as of April 11. The board disclosed that they expect to maintain this level of dividend each quarter, to be adjusted with the final quarterly dividend each year, to distribute the vast majority of annual earnings.
Rights Issue|Eppley will be issuing additional ordinary shares to fund the expansion of our business through a rights issue to existing shareholders who will be advised shortly of the terms of the issue.
Proceeds from the rights will improve the equity capital which now stands at a paltry $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares. Leverage was 3.2 times equity capital at the end of the quarter, with the average cost of debt at 10 percent. At the end of the quarter, cash was $164 million and net asset value of $394 per share, while invested funds consisting mainly of loans, leases and receivables amounted to $1.26 billion, with an average yield of 16%.
Eppley last traded at $505 on the junior market of the stock exchange and boast a PE of 6 based on projected earnings of $80 per share for 2016 which would result in earnings growing by 14 percent over 2015 out come.

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