NCB Financial Group (NCB) produced net profit of $21.3 billion for the nine months to June 2019 with profit attributable to stockholders of $20.7 billion, a marginal increase of $87 million over 2018.
For the quarter to June, NCB reported $8.3 billion in profit attributable to shareholders inclusive of $2.3 billion resulting from the increased value of the near 30 percent interest NCB owned in Guardian (GHL) before acquiring majority shares, during the quarter. Results include the consolidation of two months of GHL’s income coupled with the gain from revaluing the shares that NCB held in GHL previously, as an associated company.
For the nine months ended June, net operating income rose 22 percent to $63 billion from $51.6 billion in the prior year while it increased 28 percent to $24.5 billion in the June quarter over 2018.
Banking and investment activities netted $55.8 billion, up 13 percent over the $49.4 billion for the comparative 2018 period and for the quarter the enlarged group produced $21 billion compared to $18 billion in 2018. A 14 percent growth in our loan portfolio helped in pushing net interest income to $32.4 billion or 27 percent over $25.4 million generated in 2018. For the quarter, net interest income grew to 30 percent to $12.4 billion.
Net fee and commission income rose from $4 billion in 2018 to $5 billion for the June quarter and from $11.7 billion to $13.4 billion for the nine months period. Gains on foreign exchange trading declined sharply from $11.4 billion to $8.7 billion for the nine months period and from $4.2 billion in 2018 to $2.8 billion for the June quarter.
The net result from insurance activities grew 218 percent over the prior year to $7.2 billion from $2.3 billion in the prior year nine months period. For the quarter, net income tripled the $1.15 billion in the 2018 June quarter to reach $3.4 billion in 2019. “One of our Jamaican life insurance subsidiaries benefitted from improved spread performance and changing mortality assumptions, resulting in a significant contribution to the net profit. The consolidation of GHL’s insurance activities contributed 45 percent of net insurance revenues reported for the third quarter,” the group directors reported in their commentary to shareholders.
Operating expenses including loan and securities losses accounted for $46 billion, an increase of $13 billion or 41 percent over the prior nine months in 2018. “The consolidation of GHL and an additional quarter of Clarien’s results in the current reporting period contributed to 43 percent of this increase,” the group reported.
Impairment losses on loans and securities increased by 166 percent to $3.65 billion from $2.46 in the nine months and from just $941 million in the June 2018 quarter to $1.7 billion in the 2019 period.
Total assets grew with the acquisition of majority shares in GHL to $1.6 trillion, an increase of $635 billion or 68 percent over the prior year. “The consolidation of GHL, net of adjustments, added $517 billion in assets to the Group’s portfolio. The Group’s loans and advances, net of provision for credit losses, stood at $412 billion, an increase of $50.5 billion or 14 percent over the prior year, attributable to strong growth in our Jamaican portfolio along with the consolidation of GHL’s $14.6 billion of loans and receivables” the NCB directors report stated.
Customer deposits reached $509 billion at the end of June, an increase of 10 percent or $45 billion over the prior year. Policyholders’ liabilities increased from $39 billion in June 2018 to $422 billion due to the consolidation of GHL. Investment Securities and Reverse Repurchase Agreements Investment securities, including pledged assets, and reverse repurchase agreements amounted to $780 billion. This portfolio grew by 106 percent or $400.6 billion over the prior year, primarily due to the consolidation of GHL’s portfolio valued at $369 billion. Stockholders’ equity amounted to $137 billion, a 10 percent or $12.8 billion increase over the prior year due primarily to an 18 percent increase in retained earnings.
Earnings per share for the quarter came in at $3.42 but that includes one-time income and expenses, ongoing earnings could be in the region of $3 per share or around $12 annually. For the nine months earnings per share reported was at $8.49. Going forward the growth in the loan portfolio is one of the most critical factors to look for in assessing prospects going forward, with the acquisition of the General Insurance portfolio this area is also very critical to growth in the future. There are areas of duplication in the operations of Guardian and NCB accordingly, investors can expect rationalization to come and with that reduced cost and likely more robust sourcing for new business. NCB stock that last traded on the Jamaica Stock Exchange at $220 is a good long term investment.
The Board of Directors declared an interim dividend of 90 cents per ordinary stock unit. The dividend is payable on August 27, to stockholders of record as on August 13.
NCB solid stock for the future
Increased trading on TTSE – Monday
Trading on the Trinidad & Tobago Stock Exchange on Monday resulted in 15 securities changing hands versus 13 on Friday with modest changes to the market indices.
Trading ended with 441,595 shares at a value of $6,727,127 compared to 364,633 shares at a value of $4,376,191 on Friday. Market activity ended with the prices of 2 stocks advancing, 5 declining and 8 remaining unchanged.
At the close of trading, the Composite Index lost 0.14 points to 1,396.77. The All T&T Index fell 0.83 points to 1,778.38, while the Cross Listed Index rose 0.08 points to close at 137.42.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator ended with 3 stocks closing with bids higher than the last selling prices and 3 with lower offers.
Gains| First Citizens Bank rose 6 cents and completed trading at $40.05, with investors exchanging 246 shares and Scotiabank gained 10 cents to end at $59.98, after exchanging 40 shares.
Losses| Clico Investment Fund fell 3 cents to $24.07, with 180,040 stock units trading, CinemaOne closed with a loss of 60 cents at a 52 weeks’ low of $8.40, with an exchange of 117 units, Guardian Holdings shed 35 cents and ended at $18, with investors exchanging 47,512 units. Sagicor Financial lost 1 cent and ended at $10.10 in trading 68,808 shares and Trinidad & Tobago NGL traded 500 units and fell 10 cents to close at $27.90.
Firm Trades| First Caribbean International Bank ended at $8.35, with 580 stock units trading, Grace Kennedy settled at $3.55, with 15,270 units, JMMB Group ended at $2.19, with 122,740 stock units trading, One Caribbean Media ended at $10.10, after exchanging 97 shares. Prestige Holdings settled at $9, with 1,613 units, Republic Financial concluded at $121.29, with 2,341 units, West Indian Tobacco ended at $110, with investors exchanging 1,644 shares, Unilever Caribbean ended at $25, with 47 units crossing the exchange
Prices of securities trading are those at which the last trade took place.
More $$s chased TTSE stocks on Friday
The number of securities trading on the Trinidad & Tobago Stock Exchange on Friday remained at 13 the same as on Thursday.
Trading ended with 364,633 shares at a value of $4,376,191 compared to 354,596 shares at a value of $1,965,655, on Thursday. Market activity ended with the prices of 5 stocks advancing, 4 declining and 4 remaining unchanged.
At the close of trading, the Composite Index rose 1.06 points to 1,396.91. The All T&T Index added 2.09 points to close at 1,779.21, while the Cross Listed Index remained unchanged at 137.34.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator ended with two stocks closing with bids higher than the last selling prices and 3 with lower offers.
Gains| Angostura Holdings gained 26 cents trading 500 units and ended at $16.05, First Citizens Bank concluded trading of 1,467 shares and gained 18 cents to end at $39.99, NCB Financial Group traded 20,000 shares and rose 2 cents to close at $10.05. Scotiabank added 15 cents to close at $59.88, with 36,315 units crossing the exchange and Trinidad & Tobago NGL traded 30,000 units and fell 10 cents to close at $28.
Losses| Clico Investment Fund shares fell 5 cents and completed trading at $24.10, after exchanging 5,042 shares, JMMB Group shed 6 cents and ended at $2.19, with 243,487 units crossing the exchange, National Flour dropped 2 cents and completed trading of 600 shares at $1.67 and Unilever Caribbean declined 30 cents and settled at $25 in swapping of 7,842 shares.
Firm Trades| First Caribbean International Bank settled at $8.35, with 3,500 units crossing the exchange, Guardian Holdings closed at $18.35, after exchanging 3,000 shares, Republic Financial completed trading of 250 units at $121.29 and Sagicor Financial ended at $10.11, with 12,630 units crossing the exchange.
Prices of securities trading are those at which the last trade took place.
SOS & tTech head IC MarketWatch
Second-quarter results are coming out but still, a number of them are due out over the next few days. Results released today throws up a few strong numbers and the stocks of these companies are worth watching.
First, out the block today was tTech an IC TOP 10 BUY RATED selection with possible gains of 167 percent. The company reported a 20 percent increase in revenues in the second quarter of $91 million and a 62 percent rise in profit to $16 million and 15 cents per share with flat profit of $17 million or 16 cents per share for the half-year. The stock climbed to $6.50 at the close on Thursday and seems headed higher.
Stationery and Office Supplies reported a strong 195 percent rise in profit fro the second quarter to reach $34 million compared to just $12 million in 2018 from a 23 percent rise in sales to $295 million. for the half-year profit rose 63 percent to $92 million from $56 million from a 23 percent revenue increase to $639 million. The company is on target to meet IC Insider.com’s forecast of 75 cents for the full year. Radio Jamaica is yet to release its first-quarter results but investors have sent to stock to a high of $1.90 on Thursday. Demand has built and supplies shrank sharply and that should help move the price higher.
Caribbean cement traded 3,770,741shares up to $85 and is worth watching with supply falling. Sagicor Select ETF Fund was listed on Thursday but demand resulted in the price exceeding the 30 percent limit permitted by the JSE with investors attempting to trade the stock as high as $1.90 but the stock closed with no trading and closed with bids amounting 12 million shares at $1.30 and 324,520 were the lowest offers at $1.85. Lasco Manufacturing could be moving higher in coming trading days as supply declines and demand rises.