Scotiabank T&T making headway slowly

December 31, 2013 by

Most banks in the English speaking Caribbean are facing challenging economic environment with slow growth and moderate increase in profits.

The stalemate in the Trinidad & Tobago economy has not left Scotiabank out of its reach. The bank is reporting net income after tax of $561 million for the year ended 31 October 2013, an increase of $15.6 million or 2.9% over the same period last year. The profit flowed from revenues of $1.389 billion in net income versus of $1.287 billion in 2012. Of note is the increase in income in the last quarter of $384 million or 16 percent over the $331 earned in 2012. The increased income came all from other income not net interest.

Profits after tax rose by 11 percent or a faster pace than the full year’s growth and may be an indication that the pace of growing profits may well be picking up. However, the pace is so low that a clearer picture may have to await the first quarter results. There was no growth in the main income generator of lending with loans standing at $10.576 billion at the end of the year compared to $10.45 as of July but from $9.96 billion at the end of October 2012. Total Assets ended the period at $19.5 billion, representing growth of 10.2% or $1.8 billion over the comparative period in 2012.

scotiabanklogo150x150“Conditions in the domestic economy remain challenging, with continuing margin compression due to persistently low interest rates and high liquidity. It is against this backdrop that the Bank continues to focus on growing income through building and maintaining strong customer relationships and diversification of its revenue base through the launch of new products and services. Our strategies to manage credit quality and recoveries continue to bear fruit as evidenced by the reduction in credit losses year over year. Finally, we continue to manage expenses while ensuring we invest in our brand, people and infrastructure” management reported to shareholders.

On the basis of the results, Directors resolved that the Bank pay a fourth interim dividend of 40 cents per ordinary share and a special dividend of 30 cents (32 cents in 2012, plus a special dividend of 28 cents) on 7 January 2014 to shareholders on record at 9 December 2013.

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

TTSE: Moderate price changes

December 30, 2013 by

Monday, 30th December 2013 | Overall market activity on the T&T Stock Exchange resulted from trading in 12 securities of which 3 advanced, 1 declined and 8 traded firm.

The Composite Index advanced by 0.17 points to close at 1,184.76, the All T&T Index advanced by 0.02 points to close at 1,993.52 and the Cross Listed Index advanced by 0.04 points to close at 49.38. Trading activity saw 366,230 shares changing hands valued at $3,384,914.

First Citizens Bank added 27,383 shares valued at $1,102,185 and closed at $40.24; Guardian Holdings contributed 34,733 shares with a value of $486,262, with the closing price of $14; Jamaica Money Market Brokers saw 237,601 shares changing hands for a value of $121,177 as the price closed at 51 cents; National Flour Mills traded 6,000 units and fell 2 cents to close at 95 cents; Republic Bank stock price gained 2 cents to close at $115.84 while trading 10,370 shares with a value of $1,201,260; Sagicor Financial Corporation traded 43,174 shares for $310,421 as the price closed firm at $7.19.

TTSEDec30Clico Investment Fund had a volume of 5,878 shares valued at $129,180 and advanced by 5 cents to end at $21.98.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than the last selling prices versus only 1 stock with an offer that was lower.

Image courtesy of StuartMiles/FreeDigitalPhotos.net

Filed Under: Stock Market, TTSE Market Tagged With: , ,

FCIB gets punched

December 30, 2013 by

For the fiscal year ending October 2013, First Caribbean International Bank generated $530 million in revenue, down from $543 million in 2012 but reported lousy net results of a loss for the year of $27.5 million compared with a profit of $72 million in the prior year.

The Bank would have generated $29.6 million of net income for the year but results were affected by a number of factors. Of note they incurred $37.6 million ($35.5 million after-tax) of restructuring expenses and an increase in the collective allowance for loan losses of $25 million ($21.6 million after-tax). The bank took a $151 million loan loss hit, an increase from $120 million in 2012. The 2013 write off is 2.4 percent of the net loan of $6.3 billion with loans falling from $6.8 billion in 2012.

FCIB saw operating expenses going in the opposite direction to income as expenses grew from $348 million in 2012 to $403 million but the 2013 amount would include the restructuring cost mentioned above.

Total assets also declined to $11.4 billion from $11.5 billion in 2012. Customers’ deposits remained at $9.6 billion, roughly the same as the year before. (All figures are in US dollars).

FirstCaribbeanLogo150x150The bank, in its report to shareholders, states that “Many of the economies in which we operate rely heavily on tourism and foreign direct investments. The overhang from the economic crisis continues to impede growth and by extension has negatively affected our results. Loan loss provisions this quarter were higher than normal and include an increase in the collective allowance. The Bank is focused on pursuing risk-controlled growth and has taken considerable steps during the year toward the goal of becoming a lower risk bank. While never easy in these difficult times, we have also taken the decision to right size the organization, to redefine how we operate and to address our cost structure. The restructuring we are undertaking will position us for future cost savings and give us the ability to serve our customers better. As we continue to pursue our strategic priorities, our Bank has recorded some significant successes this year. We have introduced new and relevant products to better serve our clients and continue to leverage the capabilities of our parent and majority shareholder, CIBC.

Our focus on addressing operational and administrative concerns has also led to improvements in the client experience”.

“Our Wholesale Banking segment has recorded significant strides in client service delivery. During 2013, we have significantly removed operational and administrative activities away from the front-line personnel to ensure Corporate Managers and Client Service Officers allocate more time to work and interact with, and provide solutions to clients. We have also streamlined and strengthened our credit adjudication processes to further enhance efficiency. In our Retail and Business Banking segment we have invested heavily in developing a series of products and services to enhance our customer experience”.

The bank states that, “We have also continued our investment in upgrading our branches and network of Instant Teller machines. Focusing on customer experience, we have expedited our account opening times through an innovative continuous improvement process. In the Wealth Management segment we have leveraged the strong Axiom Mutual Funds capability in our parent and majority shareholder, CIBC, to manufacture a Caribbean based version of these funds suitable for international investors who have funds and wealth managed through the Caribbean. We have also strengthened our capability to service our Wealth Management clients with the integration into our bank of the CIBC Bank & Trust business, located in the Cayman Islands and the Bahamas, further widening the scope of clients we can assist and the range of services we can provide”.

A final dividend for the year of $0.015 per share was declared. With some of the cost not likely to recur and reduction in others flowing from the restructuring, profits should pick up in 2014 if the asset base can be held and no more major loan write down.

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

TTSE: First Citizens profit pushes price to new high

December 23, 2013 by

Monday, 23rd December 2013 | In very moderate trading, First Citizens Bank gained $1.43 to end the day at $40 for yet another new record high with a volume of 9,460 shares being traded for $378,356. The bank released results for the full year with earnings around $2.45 thus justifying the movement in the stock, which we reinstated to our IC Insider Buy Rated list.

There was trading in only 6 securities of which 3 advanced, 0 declined and 3 traded firm which accounted for 53,527 shares trading at a value of $1,058,738. The Composite Index advanced by 4.08 points to close at 1,183.84, the All T&T Index advanced by 8.23 points to close at 1,992.55 and the Cross Listed Index remained at 49.27.

Guardian Holdings traded 37,957 shares with a value of $535,604 as the price closed firm at $14 but after trading at $14.11; National Enterprises contributed a paltry 171 shares with a value of $2,999 but the price remained at $17.54, while Republic Bank added 104 shares valued at $12,045 and gained 5 cents to land at $115.82.

TTSEDec23Clico Investment Fund traded 5,800 shares valued at $127,194 as the price advanced by 18 cents to end at $21.93.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than the last selling prices, versus only one stock with an offer that was lower.

Filed Under: Stock Market, TTSE Market Tagged With: , ,

First Citizens paying 12% dividend

December 23, 2013 by

Trinidad’s First Citizens Bank has declared a $1.09 per share final dividend that will be paid January 24, 2014 to shareholders on record as of December 31, 2013, the Ex-dividend Date is December 27.

The dividend is equivalent to a 12 percent rate of return on the initial IPO price of $22 per shares in August. That adds to the return of 78 percent on the stock price for those persons who were able to get shares at the IPO price and hold them till the XD date. The dividend policy of the First Citizens Bank is to distribute to its ordinary shareholders funds surplus to the operating capital and strategic requirements of the Group, as determined by the Directors, with an annual target dividend pay-out percentage range of 45 to 55 percent of net profit after-tax. The 2013 dividends translates to around $273 million versus $263 million paid for 2012.

The bank reported profits of $742 million before tax and $606.5 million after tax compared to 2012 pre-tax profit of $714 million and $446 million after tax but the big increase after tax is due to tax adjustment in 2012 that depressed the aftertax profit.

First_Citizensbuilding150x150In the prospectus, management in commenting on a large jump in tax liability indicated, “In 2012, the Group recorded a taxation charge for the year of $267.8 million. This was due to management re-assessing its tax strategy in relation to the pursuit of tax benefits to be derived from derivative instruments. This change in strategy, which was done after careful evaluation of all relevant factors and in consultation with its tax advisors but prior to the filing of its 2011 corporation tax return, resulted in a difference between the tax liability as per the tax return for 2011 and the estimate of the tax provision recognised in the financial statements for the year ended September 30, 2011, as well as changes to the deferred income tax estimates. This change in estimate, amounting to an additional one-off tax charge of $128.3 million in 2012, was recognised in the income statement in 2012”.

The stock has been moved back into the IC Insider Buy Rated List with earnings per share of $2.45 and a target price of $55-60 in 2014.

Related posts | TTSE: First Citizens profit pushes price to new high | T&T Citizens Bank IPO oversubscribed | First Citizens shares set to explode

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

Access moved to Market Watch

December 21, 2013 by

Friday, 20th December 2013 | IC Insider has moved Access Financial to the Market Watch list with a hold placed on the stock for the time being as the recent price movement has moved the stock close to full valuation based on estimated 2013 earnings. The Junior Market stock should be held as supply is very low and the price should move up further.

IC Insider projects $1.70 per share earnings for 2014, which means that there is still room for growth, but the potential for price appreciation lags the majority of stocks in the market currently and, therefore, it no longer deserves a Buy Rating accolade. Access Financial has gained 36 percent since being tagged as Buy Rated on the 15th of July. Access also paid a dividend of 31 cents per share on August 15, bringing the total gross gains to 40 percent.

Elsewhere, the list remains as it was although the prices of some of the selections have moved up in the last week. There are strong signs that the prices of many of the selections, particularly those in Jamaica, will move up prior to the year end. This week, the Jamaica stock market closed with 12 stocks having bids above their last selling prices.

Lasco Manufacturing remains on the list not because of 2014 earnings which are unlikely to be very price positive, but based on the implications for revenues and profit with the start-up of operations of the new and expanded factory. This should be positive for the 2015 fiscal year ending in March.

BuyRatedWatchDec20Related posts | Access growth continues | LASCO manufactures more profits

Filed Under: Company News, JSE Main Market, Stock Market, Stocks to watch, TTSE Market Tagged With: ,

Buy Rated: More stocks performing

December 21, 2013 by

Friday, 20th December, 2013 | As the year grinds to a close, more of the Buy Rated stocks are showing growth. One such is Access Financial Services, which IC Insider placed a hold on and moved to the Market Watch list.

Caribbean Producers’ price has moved up to $2.60, a 28 percent gain since September when it was placed on the Buy Rated list. Meanwhile during the past week, the Lasco companies have reduced the level of losses suffered in November. Carib Cement has moved up with a 10 percent gain since selection in November and is expected to record further gains with the announcement of a price increase and exports to Venezuela.

BuyRatedGrowthDec20thJamaica Broilers moved up in the week to $4.51 thus reducing some of its losses, while Grace continues to bob and weave between $56 and $63. Others in the main market have been trimming their losses of recent months and are expected to continue to do so for the rest of the year.

On the Trinidad market, Scotia Investments fell 13 percent during the week from the Buy Rated entry point. Most others remained relatively stable. There are now 3 losses in the Trinidad section while there are 8 winners.

Related posts | Access moved to Market Watch

Filed Under: Company News, JSE Main Market, Stock Market, Stocks to watch, TTSE Market Tagged With:

TTSE: First citizens’ 4 record days

December 20, 2013 by

Friday, 20th December, 2013 | This trading week was all about First Citizens as the stock recorded 4 consecutive new highs between Tuesday and Friday, up by $3.03 cents, with the last selling price of $39.25 putting the gain at 78 percent since listing in September. At the close, the price seems destined to move higher during the coming week.

There was trading on the Trinidad stock market in 11 securities; 3 advanced, 6 declined and 3 traded firm with 471,809 shares trading for a value of $8,249,524. The Composite Index advanced by 0.61 points to close at 1,179.76, the All T&T Index advanced by 1.02 points to close at 1,984.32 and the Cross Listed Index advanced by 0.03 points to close at 49.27.

Agostini’s traded 10,000 units valued at $177,900 at $17.79; First Citizens Bank traded 171,648 shares changing hands for a value of $6,620,573 to close up 75 cents at $39.25 a new record; Grace Kennedy traded 98,281 for a value of $339,069 with the price ending at $3.45 for a 4 cents gain; Guardian Holdings exchanged 25,000 units to close firm at $14; Scotia Investments contributed 74,758 shares with a value of $112,137 as the price slipped a cents to end at $1.50, while Trinidad Cement added 70,710 shares valued at $154,021 and closed at $2.18.

TTSEDec20Clico Investment Fund had a volume of 20,700 shares trading valued at $450,225 and the price advanced by 5 cents to end at $21.75.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator show bids for 6 stocks higher and only one with an offer lower than their last selling prices, suggesting more gains in stock prices are likely in the coming days.

Filed Under: Stock Market, TTSE Market Tagged With: , ,

TTSE: First Citizens hits new high – $38.50

December 19, 2013 by

Thursday, 19th December 2013 | In trading on the Trinidad & Tobago Stock Exchange First Citizens Bank traded 9,218 units and closed at $38.50 for a gain of 50 cents to record a new high since listing in September this year.

Trading took place in 13 securities of which 6 advanced, 2 declined and 5 traded firm. The Composite Index advanced by 1.88 points to close at 1,179.15, the All T&T Index advanced by 5.25 points to close at 1,983.30 and the Cross Listed Index declined by 0.19 points to close at 49.24.a total of 626,815 shares traded at a value of $8,662,279.

Guardian Holdings exchanged 9,467 units at $14.00 up 25 cents; Grace Kennedy enjoyed strong volume of 231,780 shares changing hands for a value of $789,852 to close at $3.46 up 6 cents; Jamaica Money Market Brokers had a volume of 147,185 shares being traded for $75,536 and the price closed at 52 cents; Neal & Massy gained 85 cents to end the day at $60.00 but only 500 units traded. Scotiabank traded 21,025 shares at $72.53; Scotia Investments contributed 78,166 shares with a value of $117,749 as the price declined by 24 cents to close at $1.51, while ANSA McAL added 68,867 shares valued at $4,579,656 to close up 20 cents at $66.50. Trinidad Cement traded 12,069 units and closed at $2.17 for a 3 cents fall.

TTSEDec19Clico Investment Fund had a volume of 47,080 shares valued at $1,021,637, the price remained at $21.70 at the end of trading.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator show bids for 4 stocks higher and 3 offers lower than their last selling prices.

Filed Under: Stock Market, TTSE Market Tagged With: , ,

TTSE: First Citizens hits another record

December 18, 2013 by

Wednesday, 18th December 2013 | First Citizens Bank traded 66,219 shares changing hands for a value of $2,516,435, increasing 66 cents to end the day at a new record of $38.10 and has gained 73 percent since listing in September on the Trinidad & Tobago Stock Exchange.

Overall Market activity was limited and restricted to just 8 securities of which 6 advanced, none declined and 2 traded firm. The Composite Index advanced by 2.11 points to close at 1,177.27, the All T&T Index advanced by 4.20 points to close at 1,978.05 and the Cross Listed Index advanced by 0.01 points to close at 49.43. Trading activity on the market saw 311,461 shares changing hands valued at $13,666,829.

Guardian Holdings traded 5,508 shares at $13.75, up by 20 cents; National Flour Mills added 15,000 shares valued at $14,250 to close firm at 95 cents; West Indian Tobacco had a big volume of 43,256 shares traded for $5,191,988 but the price remained unchanged at $120.03; Scotiabank contributed 37,748 shares with a value of $2,737,835 and closed at $72.52.

TTSEDec18Clico Investment Fund traded 143,405 shares valued at $3,111,889 and advanced by 2 cents to end at $21.70.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator show bids for 3 stocks higher and 4 offers lower than their last selling prices.

Image courtesy of Photokanok/FreeDigitalPhotos.net.

Filed Under: Stock Market, TTSE Market Tagged With: , ,