NCB — Page 55

NCB ups dividend as profit climbs

April 25, 2014 by IC Insider.com

National Commercial Bank approved an increased dividend payment of 35 cents per share payable on May 22, 2014 for stockholders on record as at May 9, 2014. For the same March quarter last year, the bank cut the dividend paid on May 24 to 16 cents per share, down from 23 cents they paid in March 2012. A dividend of 32 cents per ordinary stock was paid on February 20 this year.

NCB also released the second quarter results to March and as expected the results showed strong improvement over the 2013 quarter with a net profit of $2.99 billion, up from the NDX affected $1.74 billion in 2013. The latest quarterly figures exceeds the amount reported in the December quarter when they made $2.86 billion, which was boosted by a $300 million gain from acquisition of a subsidiary. Without that one off non-operating income, profit would have grown by 17 percent over the December 2013.

Huge progress has been made in recovering from the negative impact that the NDX debt swap had on net interest income last year as $5.89 billion to $6.11 billion. For the six months to March, the bank generated net profit $5.85 billion, up from $4.53 billion last year resulting in earnings per share of $2.38 for the current year to date. In achieving these results, NCB was able to put a hold on expenses in the March quarter compared with the December quarter. The latest figures of $6.97 billion are slightly higher by just $74 million than the March 2013 quarter. For the year to March, expenses are up by $1.73 billion to $14.3 billion.

The bank is to be on target to clock around $5 per share earnings for the current fiscal year that ends in September.

The bank grew loans from $141.1 billion to just over $150.5 billion and made provision for bad loans of $492 million versus $390 million in December and $494 million in the 2013 March quarter. For the 2014 six months period, bad loan provisioning amounted to $882 million, a decline from $1.07 billion.

Filed Under: Company News, Company Results Tagged With: Jamaican Stock, JSE Company, NCB

4 stocks at new highs on TTSE

March 28, 2014 by IC Insider.com

Four stocks closed at new 52 weeks high, on the Trinidad Stock Exchange, on the final trading day of the week, as 5 stocks advanced and 2 declined.
Market activity resulted in the trading in 15 securities with 170,619 shares changing hands valued at $2,121,879. The Composite Index was down by 0.49 points to 1,171.28 while the All T&T Index fell by 0.98 points to close at 1,987.20 and the Cross Listed Index remained at 46.62.
Gains| Stocks advancing are Ansa Merchant Bank that contributed 1,280 shares at $38.49 by gaining 11 cents, One Caribbean Media 200 shares at $20 while gaining 25 cents to record a new 52 weeks high at the close, Republic Bank 6,854 shares at a new 52 weeks high of $120.11, with a gain of a cent, Unilever Caribbean 332 units to close at $58.20 for a 13 cents gain and LJ Williams B shares 11,650 units to close at 90 cents up 11 cents, both at new 52 weeks highs.
Firm Trades| Stocks trading unchanged are Clico Investment Fund 3,763 shares to end at $21.85, First Caribbean International Bank contributed 21,520 shares with a value of $123,740 and closed at $5.75, Grace Kennedy 20,000 units at $3.50, Jamaica Money Market Brokers saw 21,000 shares changing hands valued at $11,790 as the price closed at 59 cents. National Commercial Bank had 26,435 shares changing hands for a value of $30,665 as it closed $1.16, National Flour Mills traded 22,175 shares for $27,941 to close at $1.26, Neal & Massy traded 3,494 shares to close at $66.31 and Sagicor Financial Corporation 4,100 units to close at $7.05,
Declines| Stocks declining are First Citizens Bank traded 8,500 shares valued at $197,169 as the price slipped by a cent to end at $34.99, and Guardian Holdings 11,765 shares at 25 cents lower at $13.50.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bids that were higher than their last selling prices and only 1 stock with the offer that is lower.

Filed Under: Stock Market, TTSE Market Tagged With: First Caribbean, First Citizens, Grace Kennedy, JMMB, National Flour Mills, NCB, Neal & Massy, One Caribbean Media, Republic Bank, Sagicor, Trading Activity

No winners to be found on TTSE

March 20, 2014 by IC Insider.com

Market activity on Thursday resulted in the trading of 8 securities of with none advancing, 4 declining and 4 traded firm, only 41,934 shares traded valued at $2,251,206.
The Composite Index eased by 1.08 points to close at 1,179.16, the All T&T Index declined by 2.10 points to 2,003.58 and the Cross Listed Index edged down by 0.01 points to close at 46.53.
Firm trades| First Caribbean International Bank traded 540 units at $5.75, National Commercial Bank contributed 2,400 shares and closed at $1.17, Republic Bank had 12,718 shares changing hands for a value of $1,526,160 to close at $120, West Indian Tobacco added 1,378 shares valued at $162,604 and closed at $118.
Declines| Clico Investment Fund traded 19,700 shares valued at $427,699, the price fell 18 cents to end at $21.72, First Citizens Bank traded 1,148 units, 83 cents lower at $36.15, Grace Kennedy with 3,000 shares traded for $10,920 closed at $3.64 being down a cent and Scotiabank traded 1,050 units in falling 47 cents to close at $72.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market Tagged With: clico, Daily Trading, First Caribbean, First Citizens, NCB, Republic Bank, Trading Activity, TTSE

NCB insider buys, JMMB sells

March 14, 2014 by IC Insider.com

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There was contrasting trading action by insiders in two related companies this past week with National Commercial Bank, that owns roughly 30 percent of JMMB, advising that a related party purchased 6,000,000 of the bank’s shares on March 6, 2014 while Jamaica Money Market Brokers (JMMB) advised that a connected party sold 1,500,000 of its shares on March 4, 2014.

In the latest quarterly reports to December quarter last year, NCB profits grew to $2.86 billion from $2.79 billion while JMMB net profit grew to $752 million from $642 the year before.

Additionally, Jamaica Money Market Brokers advised that a Director sold 31,146 of the company’s shares on March 11, 2014.

Image courtesy of StuartMiles/FreeDigitalPhotos.net

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: Insider Trades, Jamaican Stock, JMMB, JSE Company, NCB, Trading Activity

New year, new dividends

March 7, 2014 by IC Insider.com

IC Insider’s tracking of the latest announcements on dividends for the New Year to February 28th 2014.

Sagicor Group ups dividend and approved the payment of an interim dividend of 35 per share payable on March 31, 2014 to shareholders on record as at March 21, 2014. The ex-dividend date is March 19, 2014. The company paid a dividend of 21 cents per share on October 31, 2013 and brought dividends paid in 2013 to 40 cents per share with a dividend of 19 cents per share paid on March 28, 2013. In 2012 the company paid two dividends of 28 cents each.

Jamaica Broilers Group has declared an interim dividend of 8 cents per share payable on April 9, 2014 to shareholders on record as at March 13. The ex-dividend date is March 11. The 2013 dividend represents an increase of 33.33 percent on the amount paid in 2012. The company paid an interim dividend of 6 cents per share on March 28, last year and 8 cents per share on December 2.

Pan-Jamaican Investment Trust will pay its first interim dividend for the year 2014 of 60 cents per share on March 31, 2014 to shareholders on record as at March 17, 2014. The ex-dividend date is March 13, 2014. Dividends per share paid in 2013 amounts to 45 cents on September 20, $1.10 in March and 50 cents on December 20.

Scotia Investments approved an interim dividend of 45 cents per stock unit, payable on April 10, 2014, to stockholders on record as at March 20, 2014. The company pays four dividends per annum and have paid 45 cents each for the prior four quarters

Scotia Group approved an interim dividend of 4o cents per stock unit, payable on April 10, 2014, to stockholders on record as at March 20, 2014. The company pays four dividends per annum and have paid 40 cents each for the prior four quarters.

Supreme Ventures declared a dividend of 3 cents per share payable on March 26, 2014 to shareholders on record as at March 12, 2014. The stock traded ex-dividend on March 10, 2014. The company paid a dividend of 3 cents per share on January 8, 2014. In 2013 dividends per share were paid as follows – 3 cents on September 2, 8 cents on June 17 and 10 cents on March 28.

Eppley Limited declared an ordinary interim dividend of $9 per share payable on February 28, 2014 to shareholders on record as at February 21, 2014. The ex-dividend date is February 19, 2014. This is the first dividend the company is paying on its ordinary shares since listing in 2013.

General Accident Insurance approved an ordinary dividend of 7.64 cents per stock unit payable on April 1, 2014, to shareholders on record as at March 6, 2014. The stock traded ex-dividend on March 3, 2014. General Accident Insurance paid an interim dividend of 8.728 cents per share on October 14, 2013 and also paid an interim dividend of 4.85 cents per share on March 28, 2013. In 2012 they made two payments of 4.85 cents each.

Dolphin ups dividend up 50% | Dolphin Cove has declared an interim dividend of $0.15 per share payable on April 9, 2014 to shareholders on record as at March 21, 2014. The ex-dividend date is March 19, 2014. Interim dividends were paid as follows by the company, 10 cents per share on December 4, 2013, 10 cents per share on September 16, 2013, 10 cents per share on June 6, 2013 and 10 in March 28 last year.

Gleaner Company declared an interim dividend of $0.04 per share payable on March 13, 2014 to shareholders on record as at February 27, 2013. The ex-dividend date is February 25, 2014.

PROVEN declared a dividend of US$0.0015 per ordinary share payable on March 13, 2014 to shareholders on record as at February 26, 2014. The ex-dividend date is February 24, 2014.

Carreras declared an interim dividend of $1.62 per share payable on March 13, 2014 to shareholders on record as at February 20, 2014. The ex-dividend date is February 18, 2014. This is the fourth regular dividend being paid for the year. An interim dividend of $1.30 per share and a special dividend of $0.94 per share were paid on June 20, 2013. Interim dividends of a dollar per share each were paid in August and November last year. A special capital cash distribution of $1.18 was also paid on January 30, 2014.

Cargo Handlers declared a dividend of 50 cents per share payable on March 6, 2014 to shareholders on record at February 18, 2014. The ex-dividend date is February 14, 2014. In 2013 ahead of the change in the tax rate on dividends from 5 percent to 15 percent the company paid a dividend of $1.00 per share on March 28, 2013.

AMG Packaging declared a dividend payment of 20 cents payable on March 28, 2014 to shareholders on record as at February 17, the Ex-dividend date is February 13. At the current stock price of $3.48 the yield is 5.7 percent. This is the first dividend the company has paid since listing in 2011.

The Board of Directors of Kingston Properties Limited has declared its first dividend for the year 2014 in the amount of US$0.0025 per stock unit payable on February 28, 2014 to stockholders on record as at February 10, 2014. The ex-dividend date is February 6, 2014.

Caribbean Producers (Jamaica) Limited | declared an interim dividend of 3 cents per stock unit payable on January 31, 2014 to shareholders on record as at January 16, 2014. The ex-dividend date is January 14, 2014. An interim dividend of 4.5 cents per stock unit was paid on March 28, 2013, previously an interim dividend of five cents per share paid on June 20, 2012.

Barita cuts dividend to 3 cents | Stung with a big drop in reported profits from $255 million in 2012 to only $70 million for the year ended September 2013, Barita Investments’ board approved the payment for an interim dividend of 3 cents per stock unit to be paid on January 27, 2014 to shareholders on record as at January 10, 2014. The ex-dividend date is January 8, 2014. In January 2013 a dividend of 11.4 cents per share was paid.

Dividends delayed | Sagicor Group has moved the dividend consideration from February 28 to March 6th.

Not announced | The Board of Caribbean Flavours and Fragrances who had indicated that they will consider a dividend declaration at a meeting to be held on February 5, 2014 has not yet reported the decision to the Jamaica Stock exchange nor has Jamaica Broilers who should have met on February 26.

The Board of Directors of Grace Kennedy will consider a resolution for the declaration of an interim dividend at a meeting to be held on Friday, February 28, 2014. Grace last paid an interim dividend of $0.70 per share paid on December 11, 2013, an interim dividend of $0.78 per share paid on September 30, 2013 and an interim dividend of 70 cents per stock unit was paid on March 27, 2013.

Filed Under: Company News, Dividends Tagged With: AMG Packaging, Barita Investments, Cargo Handlers, Caribbean Flavors, Caribbean Producers (CPJ), Carreras, Dividends, Dolphin Cove, Eppley, General Accident, Gleaner, Grace Kennedy, Jamaica Broilers, JSE Company, kp, KPREIT, NCB, Pan Jam, Proven, Sagicor, Scotia, Supreme Ventures

39% hike for NCB dividend

January 28, 2014 by IC Insider.com

The Board of Directors of National Commercial Bank (NCB) announced a 39 percent hike in the latest dividend that has been declared. The banking group will be paying the interim dividend of 32 cents per ordinary stock unit on February 20, 2014 to stockholders on record as at February 7, 2014. Last year, NCB’s first dividend for the year was 23 cents that was paid in March and on May 24, 16 cents per share.

NCB also reported earnings for the first quarter to December indicating that operations are back to normal coming out of 2013 when profits were negatively impacted by the government debt swap. Profit after tax came out at $2.856 billion versus profits of $2.786 billion and for the September 2013 and $1.778 billion after writing off some large one-time expenses. Earnings per share amounted to $1.16 and should reached around $5 for the year, barring any major negative developments.

Total revenues climbed by 15 percent to $13.75 billion compared to $11.967 billion.

While net revenues grew from $9.16 billion to $10.47 billion, expenses grew from $5.78 billion to $7.34 billion resulting in reduced operating profit of $300 million. A $301 million gain from on acquisition of a subsidiary counter balanced the reduced operating profit. Bad loan provision was down from $563 million to $390 million, but policy holders cost climbed by a billion dollars with the acquisition of Advantage General Insurance Company.

Looking forward, loans grew 27 percent or $31.8 billion to $148 billion from December 2012 and deposits were up 10 percent to $194 billion.

Filed Under: Company News, Company Results, Dividends Tagged With: JSE Company, NCB

NCB ill-fated IPO cost $680m

December 9, 2013 by IC Insider.com

National Commercial Bank‘s profit took a $680 million hit from the costs relating to ill-fated Initial Public Offering (IPO) early in the just concluded fiscal year to September, according to the company’s audited financial statements.

The banking group was attempting to raise added capital in the international market during the turbulent period ahead of the country reaching an agreement with the International Monetary Fund (IMF). The amount involved was written off against income thus helping to depress profits for the year and that was not the only big hit shareholders got for their investment during the year.

Net profit for the year amounted to $8.55 billion, a decline from $10.05 billion in 2012 which translates to earnings per share of $3.47 versus $4.08. The 2013 profit was also hit with a huge $1.5 billion charge, the result of losses picked up when they exchanged high yielding government bonds for lower yielding ones. Had these costs not been incurred, earnings would have been around $4.10 per share instead of the reported $3.47 amount.

Profit also got a $281 million hit from receivership expenses, an increase over the amount spent in 2012 of $172 million. Technical, consultancy and professional fees reached $1.093 billion and is up from $846 million in 2012. Some of these fees would probably relate to the IPO issue as well. The impact of those exceptional charges helped in the directors cutting the dividend payment.

The group recorded a more than doubling in the item “Other expenses” that rose to $917 million from $449 million in 2012.

Wage related costs rose 17.25 percent in the year to $9.8 billion due primarily to a larger workforce related to the acquisition of AGIC and costs associated with the restructuring exercise carried out during the financial year, the company stated in its report to shareholders. The group’s statutory contribution remained effective flat suggesting that the bulk of the increase probably relates to redundancy payments.

Advantage General suffered a fall in profit for the NCB Group.

Revenues | Net interest income rose to $23.56 billion from $21.78, in spite of the negative impact of the NDX on interest income from the government bonds. Fees and commission income moved up to $8 billion net compared to $7.1 billion in 2012. Premium income grew to $5 billion from $1.69 billion in 2012 due partially to the acquisition of Advantage General Insurance Company in the year. Gains on sale of debt securities fell to $1.15 billion from $2.65 billion in 2012.

Loan & Provision | The group wrote off $3.6 billion during the year while making fresh provisions of $2.3 billion down from $2.7 billion in 2012 and so ended with net provision of $3.2 billion at the end of the year against loans of $143.6 billion. The impact of the above adjustments show up in the aggregate amount of non-performing loans as at September 2013 for the Group on which interest was not being accrued amounted to $6,961,388,000 (2012 $8,271,530,000).

Personal loans of $72 billion account for more than half of loans on the books and was the largest growing segment of the portfolio accounting for $14 billion of the $28 billion increase in the year.

Filed Under: Company News, Company Results Tagged With: JSE Company, NCB

NCB cuts dividend 75%

November 15, 2013 by IC Insider.com

National Commercial Bank (NCB) reported bad news for investors on two fronts on Thursday when it released its full year results to September.

Not only was profit down, which was expected as a result of the write down of investment emanating from the NDX debt swap earlier in the year, but the final quarter results fell well below what was expected, from 92 cents in the June quarter and $1.10 in September 2012, to just 71 cents in the last quarter. The banking group chopped the final dividend payment for the year as well from 64 cents last year to just 16 cents. The latest announced dividend will be paid on December 12. The company’s pay-out ratio is just 18 percent, well below last year’s pay-out ratio of 34 percent and the company’s stated policy.

This year, NCB’s total payment will be 63 cents per share versus $1.40 last year unless they declare another one before year end, which they have done in the past.

In November last year, a dividend of 64 cents was paid compared to 34 cents paid at the same time in 2011. The dividend pay-out ratio for the 2012 financial year to September amounted to 27% and for the 2011 financial year 25.7%, compared to 42.2% for September 2010.

In August, NCB paid a dividend of just 8 cents, on May 24, a dividend of 16 cents per share was paid and 23 cents in March. The August payment represents a decrease from 17 cents paid in 2012 while the May 2013 payment represents a decrease from 21 cents paid in May last year. The March payment compares to 38 cents paid in January 2012.

The cut and carving of dividend payments from one period to the next is in keeping with an unpredictable policy the company has been executing even after repeating a previously announced policy fairly recently. The execution is in stark contrast with a very consistent and predictable policy of Scotia Group and many other companies on the stock exchange.

Related posts | NCB cuts dividend in half | NCB recovers from NDX hit

Filed Under: Company News, Dividends Tagged With: Dividends, JSE Company, NCB

NCB cuts dividend in half

July 26, 2013 by IC Insider.com

NCB declared a dividend of just 8 cents in its latest dividend declaration. The last payment was 16 cents per share paid on May 24 and 23 cents in March 2013.

The latest dividend will be paid on August 26 and the ex-dividend date is August 9, 2013. The August payment represents a decrease from 17 cents paid in 2012 and the May 2013 payment represents a decrease from $0.21 paid in May last year. Further back in time, the dividend pay-out ratio for the 2012 financial year to September amounted to 27% and for the 2011 financial year 25.7% compared to 42.2% for September 2010.

The cut and carving of dividend payments from one period to the next is in keeping with an unpredictable policy the company has been executing despite a recent re-publishing of the Dividend policy (see below). This is in stark contrast with a very consistent and predictable policy of Scotia Group and many other companies on the stock exchange.

NCB Dividend policy, 2011 Annual Report | The Board of Directors of National Commercial Bank recognizes the importance of capital in meeting the needs of shareholders, investors and the business. To this extent, a dividend pay-out rate has been determined.

The Board of Directors will declare, at its discretion, dividends to shareholders. These dividends will be paid from the realised earnings of NCB. The dividends will be subject to a maximum of 50% of the ordinary realised profit earned each year and will be applied after taking account of all transfers. In the event that the pay-out is less than 50% in any one year, the Board of Directors reserves the right to increase future distributions proportionately.

Further, the Board, at its discretion, may distribute to its shareholders the full amount of any and all realised gains arising from non-recurring or extraordinary transactions. The Dividend Policy is consistent with the Capital Management Plan and is reviewed annually or more or less frequently as determined by the Board.

Filed Under: Company News, Dividends Tagged With: Dividends, JSE Company, NCB

NCB recovers from NDX hit

July 26, 2013 by IC Insider.com

Despite the cost of the Government of Jamaica debt swap earlier this year the year, National Commercial Bank results to June are just a little distance away from the 2012 profit for the similar period. The banking group reported after tax profit for the nine months at $6.8 billion down from $7.36 billion in 2012 and profit of $2.27 billion in the June quarter compared to $2.587 billion in 2012. Contributing to the results is improvement in operating income which increased by 6.3 percent, or $1.7 billion, when compared with the nine months ended June, 2012. The increase is mainly as a result of net interest income, which increased by 7.9 percent ($1.3 billion) coming from the growth in loans, and investments, net fee and commission income increasing by 11.6 percent ($618 million), primarily due to increased card transaction volumes and increased fees earned from new loans.

Premium income, increased by 143.4 percent, or $2.1 billion, due mainly to the inclusion of general insurance premiums as a result of the acquisition of Advantage General Insurance Company. This is in contrast to the six months ended March when operating income declined by $26 million when compared with the six months ended March 2012. The decline was mainly caused by a $2.4 billion reduction in gains on foreign currency and investment activities arising from the bank’s participation in the debt exchanges, which plunged income for foreign currency and investment activities to a loss of $729 million in the March quarter, compared to a profit of $1.4 billion in 2012.

Loan Loss | A $450 million increase in provision for impaired loans compared to June quarter 2012 helped to keep earnings below that quarter’s net profit resulting in the net 2013 profit falling.

The data suggest that they have almost recovered from the low interest rates they are getting on Government of Jamaica debt instruments. The results for the quarter represents a recovery from the profit of $1.744 billion reported for the March quarter when the write down of the government bond was recorded. The NCBJ group accepted the Government’s debt swap offer and exchanged $118 billion of eligible securities. The primary impact of the exchange is a reduction in coupon rates and an immediate hit was felt from the lower interest rates from new instruments, compounded by the extension of the tenure of the securities.

Expenses up | Operating expenses increased by $670 million in the three months to June over the March quarter, of which $230 million is due to loan provisioning and $400 million to other operating expenses. For the nine months, operating expenses are up by $3 billion but much of this would be due to the acquisition of the general insurance company who financials are merged into the group’s figures.

Loans and advances, increased from $128.8 billion at the end of March 2013 to $135 billion and is up from $107.6 billion at June 2012, growing by 25.8 percent year over year. Investments of $227 billion have grown, but at a slower pace than loans, which is a good thing as the former has lower yields than loans. While the provision for loan losses is up, the total non-performing loans totalled $7.5 billion as at March is now at $6.6 billion due to writing off of loans that were previously provided for.

Dividend | NCB declared a dividend of 8 cents per share payable on August 24. The stock closed at $19.51 at the end of trading on Thursday with 368,314 shares trading before the results were released.

Insider call | NCB is now an IC Insider Buy Rated stock.

Photo via MLAArchitect.com