Scotiabank reported an 11.75 percent increase in their loan portfolio for the year to October as loans reached $11.8 billion. Most of the growth took place after April and helped to push up revenues and profit in the second half of the year.
At mid-year to April loans, climbed from $10.575 billion at the end of October last year to $10.85 billion, growing by only 2.6 percent, well below the yearly growth to October. At the fiscal mid-point, profits were down in both the April quarter and the half-year, versus the prior year periods. Net income after tax for the July quarter, amounted to $140 million, an increase on the $134 million earned for the same period last year.
For the nine months to June, profits fell to $390 million from $404 million, but it represented an improvement over the decline in the six months results, with profits of $250 million versus $270 million in 2013. The second quarter results of $105 million compared with $128 million, in 2013, was one of the factors pulling down the results, as net revenues fell compared with the prior year.
With things starting to look up from the June quarter, the bank rolled out a respectable 11 percent increase in their October quarter profit after tax to hit $170 million versus $153 million in the same quarter in 2013 and a slight increase in the full year results which moved from $557 million to $560 million.
Loan loss provision rose from $4 million in 2013 to hit $28 million in 2014 and $9 million for the October 2014 quarter. Non-interest expenses were held tightly with virtually no increase in the October quarter with $173 million versus $172 million in 2013 and for the full year $639 million versus $612 million.
Banks make the bulk of their income from lending. If good loans are growing profits will usually grow if not, profits will tend to be much harder to grow. Loans grew 10 percent between July and October or 20 percent annualised but the growth in the October quarter was a more tepid 3 percent or at the rate of 12 percent per annum. This lower rate could well be a more sustainable level going forward, which will be enough to result in increasing profit at a reasonable pace.
Based on the last quarter results, investors should be looking at earnings per share climbing from $3.17 this year to be in the $4 region next year, as the bank overcomes the poor first half of the 2014 fiscal year.
The major concern, has to be the impact that the sharp fall in world oil prices will have on the Trinidad’s economy and the effect on the bank. That is something worth watching. Additionally, interest rates have been moved up, by the country’s Central Bank and could go higher, in the 2015. Rising interest rates can be negative for stocks.
Scotiabank T&T full profit recovery
JSE main market marching slowly up
Grace stock gained $1 to end at $62.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 9 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower as demand increases to buy stocks ahead of the year end close.
Main Market| The JSE Market Index gained 419.22 points to 74,769.09, the JSE All Jamaican Composite index rose 468.75 points to close at 82,313.54 and the JSE combined index gained 394.17 points to close at 76,575.63.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Grace Kennedy completed trading with 10,952 shares changing hands, with a gain of $1 to $62, National Commercial Bank saw trading in 17,306 units with a gain of 16 cents to $18.16. Sagicor Group finished trading with 337,678 shares with the price rising 2 cents to $9.90, Scotia Group ended trading with 24,212 units, the price put on 46 cents to $20.01 and Scotia Investments concluded trading with 25,000 shares changing hands with a gain of 5 cents to $22.55.
Firm| The stocks in the main market to close without a change in the last traded prices are, Cable & Wireless ended with 34,400 units and closed at 45 cents, Jamaica Broilers exchanged 41,577 shares at $4 each, Kingston Wharves concluded trading with 9,700 shares changing hands to close at $6. Proven Investments had 525 shares changing hands to close at 18.5 US cents, Radio Jamaica contributed 4,758 shares to close at $1.18 and Supreme Ventures ended trading with 8,300 shares at $1.90.Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Carreras ending with 11,848 units, as the price slipped 1 cent to $36.99, Gleaner closing at a new 52 weeks’ low while trading 20,000 shares at 99 cents, by slipping by 1 cent and Jamaica Money Market Brokers finished with 14,600 shares with a loss of 4 cents to $7.06.
Preference| Proven Investments 8% preference share traded 150 units at $5.50.
No price changes on junior market
Thursday was another light trading day, on the Junior Market as it closed with only 3 securities traded. Trading ended with 24,050 units valued at $123,607. The JSE Junior Market Index remained unchanged, to close at 671.04. There were no price changes at the close of trading.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to be weak with 7 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
The active stocks for the day are, Knutsford Express Services that traded 20,550 shares at $5.85, Lasco Financial Services with 2,500 shares, closed at 96 cents and Lasco Manufacturing with 1,000 shares ended unchanged at 99 cents.
5 stocks rose 3 fell on TTSE
Trading on the Trinidad Stock Exchange on Thursday, closed with14 securities changing hands of which 5 advanced, 3 declined and 6 traded firm. Overall activity ended with total of 203,577 units, valued at $1,286,479 traded.
At the close, the Composite Index slipped 0.16 points to close at 1,142.43, the All T&T Index rose by 0.21 points to close at 1,970.58 and the Cross Listed Index fell 0.07 to end at 41.15.
Gains Stocks closing with gains at the last traded prices are, Angostura Holdings ended trading 4,025 shares, the price gained 1 cent to $12.77, ANSA McAL traded 1,941 shares to end at a cent higher, at $66.36. Ansa Merchant Bank gained 1 cent, to close at $$39.43 while trading 180 shares, National Flour Mills with 69,833 shares changing hands and closed with a 1 cent gain at $1.12 and Trinidad Cement ended at $2.51 after it traded at $2.54 to gain 17 cents at the close while trading 14,125 units.
Declining stocks Stocks closing with a loss at the last traded prices are, National Commercial Bank lost a cent to end at $1.04 while 50,000 shares were traded, National Enterprises in trading 472 shares closed with a 6 cents loss at $17.44 and Point Lisas Port Development with 225 shares while losing 25 cents to end at $3.75.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund traded 27,825 shares valued at $ $640,029, the price remained at $23. First Citizens Bank trading 1,105 shares to close at $36.77, Guardian Holdings with 845 shares changing hands and ended at $13.25 followed by Massy Holdings added 554 shares and ended at $68.25, Prestige Holdings contributed 275 shares to close at $9.56 and Sagicor Financial Corporation traded 32,172 shares value of $191,423 to end unchanged at $5.95
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bids higher than their last selling prices and 2 stocks with offers that were lower.
Minimal branch closures at BNSJa
Jacqueline Sharp CEO of Scotia Group
Sharp was addressing the press, in providing an update on the group’s operation for the year to October. The local group closed their Westgate and Barnett street branches, with the opening of the new branch at Fairview, just outside of the old Montego Bay city centre. “The main branch in Sam Sharp’s square remains open. Due to the limited branch closures no provision was made in the 2014 accounts and the staff at the closed branches were absorbed within the group,” Sharp said.
The Canadian parent had announced closure of branches and staff cut of 1,500, to trim cost and better align branches with customer demand. But Sharp stated that the local operation was always looking at ways of making the operation more efficient and will focusing on this aspect going forward.Business as usual locally, comes against the back ground of Scotia Group making profit of $10 billion versus nearly $11 billion in 2013, but more importantly, the banking operations made profit of $3.935 billion vs $3.99 billion in 2013 after absorbing additional asset tax cost of $260 million.
Market slips but 5 stocks rose 4 fell
Supreme Ventures stock rose nearly 6% to $1.90 on Wednesday
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator showed 5 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Main Market| The JSE Market Index lost 108.71 points to 74,349.87, the JSE All Jamaican Composite index fell 121.55 points to close at 81,844.79 and the JSE combined index gained declined by 180.61 points to close at 76,181.46
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Cable & Wireless that saw only 112,228 shares changing hands with a gain of 2 cents to 45 cents, Carreras in trading with 3,855 units with a gain of 11 cents to $37. Jamaica Producers concluded trading with 2,000 shares, the price rose 1 cent to $15.96, Scotia Group ended trading with 66,782 units and put on 5 cents to $19.55 and Supreme Ventures had 8,100 shares trading to end with an increase of 10 cents to $1.90.
Firm| The stocks in the main market to close without a change in the last traded prices are, Caribbean Cement with 4,592 shares for $2.40, Grace Kennedy concluded trading with 5,098 shares, changing hands to close at $61. Jamaica Broilers exchanged 10,970 shares at $4 each, Jamaica Money Market Brokers ended trading with 200 ordinary shares changing hands to close at $7.10. Jamaica Stock Exchange completed trading with 30,000 shares at $1.50, Kingston Wharves saw trading in 15,700 shares at $6, National Commercial Bank finished trading with 222,853 shares changing hands at $18 and Seprod concluded trading with 2,000 shares at $12.Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Sagicor Group finished with 114,849 shares with a loss of 2 cents to $9.88 and Sagicor Real Estate Fund finished trading with 4,270 units and fell 4 cents to $6.81.
Preference| Jamaica Money Market Brokers 8.50% preference share contributed 3,000 units at $3.50 and the Jamaica Money Market Brokers 8.75% preference share ended trading with 2,357,859 shares changing hands at $3.
4 junior market stocks trade
Sweet River factory – the company stock was 1 of 4 that traded.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market weakness continues with 8 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Market activity saw Caribbean Cream with 7,000 shares changing hands to close at 70 cents, Sweet River Abattoir ended with 4,800 shares changing hands to close at $3.86, Access Financial ended with 4,100 units as the price slipped $1.01, to $9 and Lasco Manufacturing closed with 148,838 shares trading lower by 1 cent to 99 cents.
J$ slips vs US$ gains on others – Wednesday
The Jamaican dollar lost value against the US dollar but gained against the British pound and the Canadian dollar, on Wednesday. Authorized dealers purchased the equivalent of US$31,872,356 versus US$34,565,581 on Tuesday, and sold the equivalent of US$33,727,145 compared with US$33,169,744 on Tuesday.
In US dollar trading, dealers bought US$26,146,822 compared to US$29,642,890 on Tuesday. The buying rate for the US dollar rose 7 cents to $113.18 and US$30,605,638 was sold versus US$30,393,433 on Tuesday. The selling rate rose 6 cents at $113.69 The Canadian dollar buying rate fell 70 cents to $97.63 with dealers buying C$1,175,216 and selling C$870,583, at an average selling rate that declined 23 cents, to $99.01. The rate for buying the British Pound rose $1.22 to $176.80, for the purchase of £2,948,910, while £1,428,934 was sold, the rate rose 64 cents to $178.04. Other currencies bought, amounted to the equivalent of US$105,052 while the equivalent of US$125,689, was sold.
Highs & Lows| The highest buying rate for the US dollar, closed $1.02 lower at $113.93, the lowest buying rate and the highest selling rate were unchanged at $93.35 and $119.63, respectively but the lowest selling rate dropped back $17.95 to $93.10. The highest buying rate for the Canadian dollar rose 25 cents to end at $100.25. The lowest buying rate closed 8 cents higher at $79.76. The highest selling rate dived $5.87 to $102.63 and the lowest selling rate fell $1.70 to $94.30. The highest buying rate for the British Pound, dropped 15 cents to $178.80. The lowest buying rate fell 74 cents to $143.47, the highest selling rate eased 96 cents to $184.95 and the lowest selling rate fell 15 cents to $172.85.
2 new highs on TTSE
Scotiabank profit rose for 2015, helping to push demand for the stock which rose in Wednesdays trading.
Scotiabank which closed with a bid of $59.31, reported an 11 percent increase in their October quarter profit after tax, and a slight increase in the full year results. These results are helping to stimulate the price of the stock forward.
In overall trading on Wednesday, the Trinidad Stock Exchange closed with 9 securities changing hands of which 3 advanced, none declined and 6 traded firm, with a total of 297,972 units, valued at $6,289,262 be actively traded. At the close, the Composite Index rose 0.05 points to close at 1,142.59, the All T&T Index rose by 0.09 points to close at 1,970.37 and the Cross Listed Index remained at 41.22.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, First Citizens Bank trading 1,500 shares to close at $36.77, Guardian Holdings with 45,969 shares changing hands for a value of $609,134 and ended at $13.25 followed by Grace Kennedy with 16,120 shares at $3.75. Massy Holdings added 5,807 shares valued at $396,328 and ended at $68.25, Prestige Holdings contributed 6,880 shares to close at $9.56 and Trinidad Cement traded 1,000 shares at $2.35.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.
2 new 52 weeks’ highs & 2 lows on TTSE
Trading on the Trinidad Stock Exchange closed on Tuesday with 2 new 52 weeks, highs and 2 new lows as 15 securities changed hands of which 6 advanced, 5 declined and 4 traded firm, with a total of 145,030 units, valued at $2,055,749 being active.
At the close of the market, the Composite Index rose 0.25 points to close at 1,142.54, the All T&T Index rose 0.69 points to close at 1,970.28 and the Cross Listed Index fell by 0.02 points to end at 41.22.
Gains| Stocks increasing in price at the close are, ANSA Mcal with 1,330 units, gained 6 cents to end a $66.36, Clico Investment Fund traded 400 share, advanced by 3 cents to end at $22.75, a new 52 weeks’ high. Guardian Media $50.00 6% Cumulative Preference closed at $65.01 while 20 shares were traded to gain 1 cent, for a new 52 weeks high. National Enterprises gained 3 cents while trading 7,317 units to end at $17.50, Scotiabank had 868 units trading and increased 19 cents to end the day at $59.20 and Trinidad Cement increasing 4 cents to $2.34 while trading 5,520 shares.
Declines| The stocks declining at the end of trading are, Guardian Holdings with 48,950 shares changing hands, for a value of $648,588, fell 24 cents, to close at $13.25, Flavorite Foods traded 1,000 shares at $4.80, down 10 cents, for a new 52 weeks’ low. Grace Kennedy contributed 12,500 shares and lost 9 cents, to close at $3.75, National Commercial Bank with a volume of 48,400 shares and lost 2 cent to end at $1.05, after trading 10 shares and Sagicor Financial Corporation lost 2 cents to end at $5.95, in trading 1,728, for a new 52 weeks’ low.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, First Citizens Bank traded 3,587 at $36.77, while Massy Holdings added 12,400 shares valued at $846,300 to close at $68.25, One Caribbean Media ended with 1,000 units changing hands at $25.10, Prestige Holdings closed at $9.56.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator showed 6 stocks with the bid higher than their last selling prices and 1 stock with the offer that was lower.
