Market activity surged on the Jamaica Stock Exchange Main Market on Wednesday, as the volume of shares trading climbed 79 per cent, with the value jumping 205 percent higher than on Tuesday and ended with declining stocks exceeding those rising.
The All Jamaican Composite Index dived 7,446.51 points to 443,142.76, the JSE Main Index dropped 5,441.59 points to 390,042.16 and the JSE Financial Index slipped 1.22 points to settle at 92.45.
Trading ended with 59 securities up from 58 on Tuesday, with 24 rising, 27 declining and eight ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 14.6. The PE ratio for the JSE Main and USD Market closing quotes is based on ICInsider.com earnings forecasts for companies with financial years ending by the end of August 2023.
Overall, 25,782,899 shares traded for $428,646,320 versus 14,387,651 units at $140,647,485 on Tuesday. Kingston Wharves led trading with 7.09 million shares for 27.5 percent of total volume, followed by Mayberry Jamaican Equities with 5.57 million units for 21.6 percent of the day’s trade, Transjamaican Highway ended with 5.43 million units for 21 percent of market share and Wigton Windfarm ended with 1.28 million units changing hands for 5 percent market share.
Trading averaged 436,998 units at $7,265,192, compared to 248,063 shares at $2,424,957 on Tuesday and month to date, an average of 693,901 units at $7,327,393, compared to 717,999 units at $7,333,227 on the previous trading day. March closed with an average of 610,787 units at $6,967,031.
Investor’s Choice bid-offer indicator shows eight stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Barita Investmentsrallied 39 cents to close at $90.35 after 12,993 shares crossed the market, Eppley fell $2.45 in closing at $40.05 with an exchange of 271 stock units, GraceKennedy climbed $3 in ending at a 52 weeks’ high of $113 with the swapping of 320,475 units. Guardian Holdings increased $8 to end at $528 after exchanging 7,050 stocks, Jamaica Broilers gained 52 cents to close at $28.99 in exchanging 9,642 units, Jamaica Stock Exchange rose 74 cents to $23.99 in switching ownership of 27,127 stock units. JMMB Group declined $1.04 to $44.85, with 369,209 stocks crossing the market, Key Insurance dropped 37 cents to end at $4.60 after trading 14,801 shares, Kingston Wharves shed $6.50 in closing at a 52 weeks’ low of $34, with 7,091,004 stock units changing hands. Massy Holdings advanced 93 cents to close at $98.95 in an exchange of 39,040 stocks, Mayberry Investments popped 45 cents to $7.95 in exchanging 38,974 shares, Mayberry Jamaican Equities lost 77 cents to close at $11.51, with 5,565,183 units clearing the market. NCB Financial rose $2.75 to end at $112 and closed with 61,157 units changing hands, Palace Amusement advanced $49.99, ending at $1000, with 96 stocks crossing the exchange, Portland JSX gained $2.44 in closing at $11 in trading 5,359 stock units. 
Proven Investments dropped $2 to $36.50 while exchanging 12,315 shares, Sagicor Group shed 40 cents to end at $55, trading 56,121 units, Seprod fell $2.48, ending at $59.50 after trading 3,345 stocks. Sygnus Real Estate Finance declined 79 cents to close at $15.50 with an exchange of 1,967 stock units and Wisynco Group lost $1 in closing at $23 after trading 789,735 shares.
In the preference segment, Jamaica Public Service 9.5% surged $397.63 in, ending at a 52 weeks’ high of $3047.63 after 25 units crossed the market and Productive Business Solutions 9.75% Preference share rallied $13.50 to end at $120 after exchanging 445 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE USD Market pops higher on depressed volume
Trading on the Jamaica Stock Exchange US dollar market closed on Wednesday, with the volume of shares changing hands declining sharply after trading 99 percent fewer shares were traded with a 62 percent lower than on Tuesday, resulting in more stocks rising than falling.
A total of seven securities traded, down from 10 on Tuesday, with two rising, one declining and four ending unchanged. The JSE US Denominated Equities Index added 0.03 points to end at 224.97.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.7. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending to the end of August 2023.
Overall, 43,738 shares traded, for US$19,092 down from 4,110,461 units at US$49,816 on Tuesday. Trading averaged 6,248 units at US$2,727, down from 411,046 shares at US$4,982 on Tuesday, with the month to date average of 128,180 shares at US$5,197 versus 138,341 units at US$5,403 on the previous day. March ended with an average of 59,258 units for US$6,669.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than the last selling prices and one stock with a lower offer.
At the close, First Rock Capital USD share ended at 7.95 US cents after exchanging 55 shares, Proven Investments dropped 0.99 of one cent to 24 US cents, after trading 29,854 units, Sterling Investments ended at 2.24 US cents in switching ownership of 10 stock units and Sygnus Credit Investments USD share finished at 12.89 US cents after trading 8,268 stocks.
In the preference segment, Equityline Mortgage Investment preference shares gained 1.9 cents in closing at US$1.999 in trading just one share, JMMB Group 5.75% finished at US$2.03 after exchanging 5,000 stock units and JMMB Group 6% climbed 0.15 cents ending at US$1.14 in exchanging 550 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Record high for Junior Market again
Investors pushed up stocks to record highs during trading on Wednesday, leading to the suspension of five stocks for breaching the circuit breaker limit on the Jamaica Stock Exchange Junior Market in the morning session. The market hit new record highs, aided by Fosrich that jumped to a record $27 before closing at $26.90 after announcing a proposal for the board to consider the recommendation of a stock split and rights issue later this year.
New record high for the JSE Junior Market.
Trading ended with 60 percent more shares with 96 percent increased value than Tuesday. Market activity led to 42 securities trading, compared to 43 on Tuesday, ending with 15 rising, 23 declining and four closing unchanged. The Junior Market Index rose 20.80 points to settle at a record close of 4,289.53 after hitting a record intraday high of 4,316.66. Three stocks ended trading at 52 weeks’ closing highs, with Paramount traded at a 52 weeks’ intraday high of $2.85, while Tropical Battery traded at a record high of $2.85 before pulling back to close at a 52 weeks’ high of $2.69.
The PE Ratio, a measure used to compute appropriate stock values, averages 13.6. The PE ratio of each stock in the chart below is based on ICInsider.com earnings forecast for companies with financial years up to August 2023.
Overall, 17,123,040 shares traded valued $73,979,105, up from 10,723,885 units at $37,772,473 on the Tuesday. Jamaican Teas led trading with 4.29 million shares for 25 percent of total volume, followed by iCreate, 1.57 million units for 9.2 percent of the day’s trade, 
Elite Diagnostic traded 1.53 million units for 8.9 percent of market share. Tropical Battery had an exchange of 1.33 million units for 7.7 percent market share and Derrimon Trading ended with 1.03 million units for 6 percent market share.
Trading averaged 407,691 shares at $1,761,407 up from 249,393 shares at $878,430 on Tuesday with the month to date, averaging 484,085 units at $1,817,071 compared to 490,882 units at $1,822,024 on the previous trading day. March closed with an average of 719,276 units at $2,636,802.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial lost 50 cents to close at $21, with 2,228 shares crossing the exchange, Blue Power rallied 20 cents to $3.80 in trading 100 stock units, Dolphin Cove dropped 25 cents in closing at $21.50, with 146,987 units crossing the market. EduFocal declined 10 cents to $3.67 after exchanging 662,463 stocks, Elite Diagnostic fell 43 cents to end at $4.17, with 1,532,056 stock units crossing the market, Fontana shed 45 cents to close at $10.45 with an exchange of 129,040 shares. Fosrich surged $4.90 in ending at a record high of $26.90 after exchanging 693,741 stocks, General Accident advanced 17 cents to close at $6.17 in an exchange of 11,236 units, Honey Bun fell 25 cents in closing at $9.60, with 33,389 stocks changing hands. iCreate popped 32 cents to end at a 52 weeks’ high of $1.94 in exchanging 1,570,186 stock units, Jamaican Teas rallied 54 cents to $3.95 with the swapping of 4,288,461 units, KLE Group declined 33 cents in closing at $2.35 while exchanging 4,396 shares. 
Lasco Financial dropped 10 cents to close at $3.40 in switching ownership of 2,103 stocks, Lasco Manufacturing climbed 19 cents to end at $5.19 after trading 98,218 units, Mailpac Group gained 14 cents ending at $3.28 after trading 382,107 stock units. Main Event shed 10 cents to close at $7.90, with 110,989 shares clearing the market, Spur Tree Spices rose 10 cents to end at $3.70 as 559,615 shares changed hands, SSL Venture lost 42 cents in closing at $1.40 in switching ownership of 524,914 stock units and Stationery and Office Supplies rallied $1.18 to $9.10 while exchanging 55,375 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big drop for JSE majors new high for Juniors
The Junior Market continues with its winning streak in hitting a new intraday high of 4,316.65 in the morning session and then closed at a new closing record high of 4,289.53 after the market index rallied 20.80 points for the day bettering the record close on Tuesday of 4,268.73 and, but the JSE Combined Index dropped 4,909.77 points in ending at 403, 254.67.
The All Jamaican Composite Index dived 7,446.51 points to 443,142.76, the JSE Main Index dropped 5,441.59 points to 390,042.16 and the JSE USD market index edged 0.03 points higher to end at 224.97.
The market’s PE ratio ended at 23.3 based on 2021-22 earnings and 13 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should make use of the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Big jump in JSE USD market trade
Trading on the Jamaica Stock Exchange US dollar market closed on Tuesday, with the volume of shares trading surging 2,380 percent over Thursday’s level with a 361 percent greater value, resulting in more stocks rising than falling.
A total of 10 securities traded, up from seven on Thursday, with three rising, one declining and six ending unchanged.
The JSE US Denominated Equities Index gained 3.51 points to end at 224.94.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.7. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending to the end of August 2023.
A total of 4,110,461 shares were traded, for US$49,816 compared to 165,771 units at US$10,795 on Thursday.
Thursday. Trading averaged 411,046 units at US$4,982, compared to 23,682 shares at US$1,542 on Thursday, with month to date average of 138,341 shares at US$5,403 versus 101,489 units at US$5,460 on the previous day. March ended with an average of 59,258 units for US$6,669.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than the last selling price and two with lower offers.
At the close, First Rock Capital USD share finished at 7.95 US cents after trading 387 shares, Margaritaville ended unchanged at 16 US cents after exchanging 2,022 stock units, MPC Caribbean Clean Energy remained at US$1.26 after trading just one unit. 
Productive Business Solutions ended at US$1.19 in an exchange of two units, Proven Investments fell 0.01 of a cent in closing at 24.99 US cents after exchanging 6,944 stock units, Sterling Investments rallied 0.24 of a cent to 2.24 US cents in clearing the market with 7,830 stocks. Sygnus Credit Investments USD share gained 0.44 of one cent in closing at 12.89 US cents with 16,836 shares changing hands, Sygnus Real Estate Finance USD share remained at 14.7 US cents with an exchange of 182 units and Transjamaican Highway rose 0.13 of a cent to close at 1.11 US cents with the swapping of 4,075,625 shares.
In the preference segment, JMMB Group 6% finished at US$1.1385 in trading 632 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market closes up
Market activity ended on Tuesday, with the volume of shares trading declining by 80 percent, with a sharp 89 percent drop in value than trading on Thursday on the Jamaica Stock Exchange Main Market as declining stocks exceeded those that rose.
The All Jamaican Composite Index rose 1,364.08 points to settle at 450,589.27, the JSE Main Index gained 996.90 points to end at 395,483.75 and the JSE Financial Index rallied 0.25 points to settle at 93.67.
Trading ended with 58 securities compared to 60 on Thursday, with 21 rising, 27 declining and 10 ending unchanged.
The PE Ratio, a formula for computing appropriate stock values, averages 14.5. The PE ratio for the JSE Main and USD Market closing quotes is based on ICInsider.com earnings forecasts for companies with financial years ending to the end of August 2023.
Overall, 14,387,651 shares were exchanged for $140,647,485 versus 70,371,025 units at $1,275,443,556 on Thursday. Transjamaican Highway led trading with 5.85 million shares for 40.6 percent of total volume, followed by Wigton Windfarm, 2.70 million units for 18.8 percent of the day’s trade and Sagicor Select Financial Fund with 1.45 million units for 10.1 percent market share.
Trading averaged 248,063 units at $2,424,957, down from 1,172,850 shares at $21,257,393 on Thursday and month to date, an average of 717,999 units at $7,333,227 versus 765,733 units at $7,831,791 on the previous trading day. March closed with an average of 610,787 units at $6,967,031.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and five with lower offers.
At the close, Caribbean Cement lost 79 cents to close at $71.20 after exchanging 26,049 shares, Eppley fell 35 cents to $42.50 trading 562 stock units, Eppley Caribbean Property Fund climbed 60 cents ending at $45, with 15 units clearing the market. strong>GraceKennedy rallied $5.19 in closing at 52 weeks’ closing high of $110 after 689,281 stocks crossed the market, Jamaica Broilers dropped 53 cents to end at $28.47 in trading 9,662 stock units, Jamaica Stock Exchange shed 73 cents to $23.25 with the swapping of 124,594 stocks. JMMB Group declined 36 cents to close at $45.89 in trading 354,055 units, Kingston Wharves declined $1.20 in closing at $40.50 in an exchange of 1,578 shares, Margaritaville dropped 50 cents to end at $25.50 in switching ownership of 21 units. Massy Holdings shed 98 cents in ending at $98.02 with 21,253 stock units changing hands, Mayberry Investments advanced 30 cents to close at $7.50 after trading 53,548 shares, NCB Financial lost $7.75 to $109.25, with 47,497 stocks changing hands. 
Portland JSX fell $2.44 in closing at $8.56, with 56 stock units crossing the exchange, Proven Investments gained 30 cents to end at $38.50 while exchanging 21,365 shares, Sagicor Group lost $1.58 to end at $55.40 in an exchange of 6,625 stocks and Wisynco Group rose 80 cents to close at $24 after trading 184,605 units.
In the preference segment, 138 Student Living Preference shares jumped $1.44 to end at $16.50 after exchanging 75 stocks, Eppley 7.25% Preference share declined 49 cents to $22.50 in trading just one unit and Productive Business Solutions 9.75% Preference share shed $11.20 in closing at $106.50 with an exchange of just two stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
New record close for Junior Market
The Jamaica Stock Exchange Junior Market continues to hit new highs as the market index crossed over the 4,300 points mark in early trading on Tuesday but ended lower as to end at a record closing high of 4,268.73 after recording a gain of 15.47 points at the close.
A new record closing high for the JSE Junior Market.
Market activity led to 43 securities trading similar to trading on Thursday and ended with 17 rising, 20 declining and six closing unchanged. AMG Packaging, Elite Diagnostic and iCreate all ended at new 52 weeks’ closing highs.
The PE Ratio, a measure used to compute appropriate stock values, averages 13. The PE ratio of each stock in the chart below is based on ICInsider.com earnings forecast for companies with financial years up to August 2023.
Trading closed on Tuesday, with the volume of stocks traded declining 82 percent and the value dropping by 84 percent versus Thursday and ended with 10,723,885 shares traded for $37,772,473, down from 59 575,175 units at $234,063,113 on Thursday. Elite Diagnostic led trading with 1.67 million shares for 15.6 percent of total volume, followed by Derrimon Trading with 1.41 million units for 13.1 percent of the day’s trade and iCreate, 1.17 million units for 10.9 percent market share.
Trading averaged 249,393 shares at $878,430 versus strong>1,385,469 shares at $5,443,328 on Thursday with the month to date, averaging 490,882 units at $1,822,024 compared to 515,088 units at $1,916,603 on the previous trading day. March closed with an average of 719,276 units at $2,636,802.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Access Financial dropped 50 cents to $21.50 in switching ownership of 858 shares, AMG Packaging rose 30 cents to end at a 52 weeks’ closing high of $4 after trading 572,834 stocks after trading at an intraday record high of $4.50, following the release of a continued surge in profit for the current fiscal year. Blue Power lost 49 cents in closing at $3.60 in exchanging 246 units. CAC 2000 advanced 50 cents to close at $7.50, with 71 stock units clearing the market, Cargo Handlers fell 85 cents to $10.15 with 332 shares changing hands, Caribbean Cream increased 20 cents to end at $5, with 91,196 stocks changing hands. Dolphin Cove declined $1.12 to $21.75 in trading 171,740 stock units, Elite Diagnostic rallied 93 cents in closing at 52 weeks’ high of $4.60 with the swapping of 1,669,094 units, Express Catering shed 21 cents to close at $6.22 after exchanging 36,254 stocks. Fosrich dropped 11 cents to $22 after finishing trading 10,434 units, Honey Bun popped 25 cents in closing at $9.85after exchanging 11,638 stock units, iCreate gained 26 cents to close at a 52 weeks’ high of $1.62 after trading 1,167,102 shares. Indies Pharma climbed 15 cents in ending at $3.15 with an exchange of 51,451 shares, ISP Finance shed 45 cents to close at $29.50, with 20 stocks crossing the market, Jamaican Teas fell 13 cents to end at $3.41 while exchanging 489,230 stock units. 
Lasco Manufacturing declined 20 cents to $5, with 158,121 units crossing the market, Main Event popped 15 cents to $8 in an exchange of 18,153 units, Paramount Trading increased 42 cents in closing at $2.18 in exchanging 800,157 stocks after the company posted nine months results showing continued improvement in earnings. Tropical Battery gained 17 cents to close at $2.68 in switching ownership of 503,264 stock units and tTech lost 20 cents in ending at $3.80 after 2,218 shares changed hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Record high for Junior Market & JSE majors gain
After closing for the long weekend following the two-day break for Easter celebrations, trading on the Jamaica Stock Exchange resumed on Tuesday with all markets closing higher, with the Junior Market hitting an intraday high of 4,300.73, just below the record intraday high of 4,303.77 reached on April 13, this year, before the market index ended at a new closing record high after the market rallied 15.46 points to end at 4,268.73 and helped the JSE Combined Index to add 1,070.71 points in ending at 408,164.44.
The All Jamaican Composite Index gained 1,364.08 points to 450,589.27, the JSE Main Index rose 996.90 points to 395483.75 and the JSE USD market index popped 3.50 points to end at 224.94.
The market’s PE ratio ended at 23.3 based on 2021-22 earnings and 13 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should make use of the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Knutsford Express revenues & profit nearing normal
Knutsford Express, the Montego Bay based cross country luxury transport, is set to deliver increased revenues and profit for the fiscal year to May, compared to 2021, but the results will be far from normal levels, nine months’ results to February show.
Revenues and profit for the third quarter reveal that things are not far from normal, following the economic fallout in 2020 from the impact of the covid-19 virus. Revenues for the nine months rose 70 percent to $775 million from $456 million in 2021 and delivered a profit of $52 million, a big turnaround from a loss of $55 million in 2021, but the third quarter numbers saw revenues jumping 63 percent to $301 million from $185 million same the similar quarter in 2021 with a profit of $37 million compared to a slight loss of $1 million.
Knutsford Express
Revenues in the latest quarter are just 5 percent below the $318 million generated in the February 2020 quarter when the company reported a profit of $40 million before tax and for the nine months with revenues then, of $925 million or 20 percent higher than the current period, with a profit of $113 million before tax.
Administrative and other operating costs rose 39 percent from $515 million in the nine months to February 2021 to $716 million in 2022, with the third quarter ending with $258 million, up 38 percent versus $187 million in 2021. Depreciation rose from $87 million for the nine months in 2021 to $107 million in 2022. Finance cost amounts to $7 million in the 2022 latest quarter against $4 million in 2021 and year to date $17 million, compared to $11.4 million in 2021.
Gross cash flow brought in $190 million, a $144 million addition to fixed assets offset by loan inflows of $50 million, increased payables and dividends paid of $40 million, resulting in cash on hand at the beginning of the period of $132 million falling by $36 million.
At the end of February, shareholders’ equity stood at $845 million, with long term borrowings at $223 million and short term debt at $21 million. Current assets ended the period at $357 million, including trade and other assets of $103 million, cash and equivalent of $236 million. Current liabilities amount to $94 million at the close of the period and net current assets of $263 million.
Earnings per share for the quarter was 8 cents and 9 cents for the nine months. ICInsider.com projections suggest earnings per share for the fiscal year to May at 20 cents and 2023 at 50 cents.
The February quarter results fall in a period when tourism flows to the country were down around a third compared with the 2020 period, suggesting a better period ahead for traffic as the company benefitted from patronage from visitors coming into the island. Accordingly, the coming fiscal year should see the company’s revenues and profit bouncing sharply over that of the current fiscal year.
The stock last traded on the Junior Market of the Jamaica Stock Exchange at $7.99, with a PE of 40 versus the market average of 24, the PE falls to 16 versus 13 for the market.
Rate hike pushes earnings higher at Scotia
If there was much competition in the banking sector in Jamaica, Scotia Group would be on its way out of business, unless they mended the poor service there are currently dishing out to customers.
Scotia Group stock could deliver handsomely in 2022.
The banking arm is delivering some atrocious customer service of late such as bouncing cheques for no funds when such accounts were adequately funded. Customers can’t get the use of the transfer of funds feature, for the credit cards are expired but no one within the bank advises of the expiration and the availability of the new card. Even when communication is made, with the bank, months pass without action. What about tokens that don’t work, leading to a nightmare trying to get the problem resolved. The service has rotted recently and they need to do something about it fast.
Though the service has gotten lousy of late and some may say it never was good, investors may find positives that they can profit from, at least that is what the group’s first quarter results to January this year show, thanks partly to the action by the country’s central bank. Most investors would not come to that conclusion from the net profit for the quarter compared to that in 2021, for while the 2021 quarterly profit came in at $1.75 billion, the latest results were only up marginally by $34 million to $1.784 billion. On the surface, there is nothing to get excited about, but closer examination tells a different story.
The results were vastly better than the $1.12 billion reported for the October quarter which suffered from a big drop in revenues. Loans fell in the quarter from $208 billion at the end of October to $201 billion at the end of January while investable funds grew to $339 billion from $321 billion at the end of October but net interest income climbed to $6.16 billion from $5.7 billion in the October quarter coming from a rise in gross interest income of $454 million quarter over quarter. Interest cost was static at $452 million. There was a strong improvement in net fee and commission income that rose from $1.1 billion in the October quarter to $1.5 billion but was a bit lower than the $1.67 billion in the January 2021 period, other revenues dropped from $973 million to $295 million in the latest quarter compared to January 2021.
Net interest income increase “was primarily attributable to an increase in interest earned on the investment portfolio and improved retail loan performance,” Scotia Group reported in their release of the quarterly results.
Audrey Tugwell Henry Scotia group’s CEO
Since the end of January, the Bank of Jamaica hiked the overnight rate to 4.50 percent from 2.5 percent, this move will drive an increase in net interest income for the group as the cost of funds will remain fairly flat while investments income balloons.
Expected credit losses on loans rose from $430 million in 2021 to $569 million in the January quarter this year but show an improvement over the $819 million in the October quarter. Net interest income after credit losses rose to $5.6 billion from $5.4 billion in 2021. Net fees and other income fell from $5.44 billion in the January 2021 quarter to $4.78 billion in 2022, resulting in a total net income of $10.37 billion, down from $10.8 billion in 2021.
Lower costs helped with the 2022 results, with expenses falling to $6 billion from $6.5 billion, net of asset tax of $1.36 billion in 2022 versus $1.26 billion in 2021, Other operating costs fell by $500 million from January 2021 to $2.8 billion in 2022.
Other comprehensive income shows an unrealized loss of $1 billion on investments compared to just $123 million in the 2021 first quarter.
Segment results provide another view of developments within the group that could point to the way forward. The Treasury segment delivered 22.4 percent more revenues from third parties to hit $763 million with a profit before tax of $138 million up from $120 in 2021. The retail division suffered a decline of 15 percent, with revenues from third parties hitting $4.57 billion from $5.38 billion in 2021 resulting in profit before tax of $103 million, down sharply from $492 million in 2021. Corporate and Commercial Banking pulled in net income of $2.7 billion, down from $2.8 billion, with profit surging to $1.44 billion versus $967 million in 2021. Investment Management pulled in $822 million in revenues with a profit of $404 million, from revenues of $878 million in 2021 with a profit of $718 million. The insurance division raked in $1.33 billion in revenues up from $984 million, with profit jumping to $857 million from $567 million. The segment classified as Other, generated revenues of $217 million and a profit of $175 million and delivered revenues of just $83 million and a profit of $30 million in 2022.
The Group’s assets grew by $38 billion or 6.9 percent to $591 billion at January 2022. This was predominantly, a result of the growth in cash resources of $42 billion or 32.4 percent due to increased deposits and places the group in a good position to expand the loan portfolio when demands pick up, with the resurgence now taking place in the wider economy.
A dividend of 35 cents per stock unit in respect of the first quarter, was approved for payment on April 20 to stockholders on record as of March 29.
