Jun 2008 Financial News

CCMB Releases First Quarter Results

Jun 12, 2008

Capital & Credit Merchant Bank Limited
Results for the First Quarter Ended March 31, 2008

All figures quoted in Jamaica Dollars unless otherwise stated

Earnings Per Share
For the First Quarter Ended March 31, 2008, Capital & Credit Merchant Bank Limited (CCMB) reported Earnings Per Share (EPS) of 26 cents. This represented a 8.3 per cent increase or 2 cents on the corresponding period in FY07. The Group has attributed the improved quarter performance to its continued emphasis on growing its core banking activities. Other factors contributing to the improved performance included increased Commission and Fee Income, Dividend Income and Foreign Exchange Trading.

Financials:
• Gross Operating Revenue, up 6.6 per cent or $89.3 million to $1.5 billion
• Investment Income, up 9.7 per cent or $94.1 million to $1.1 billion
• Loan Income, up 52.6 per cent or $85.4 million to $247.6 million due to the Bank’s continued focus on growing both its retail and corporate loan portfolios
• Net Interest Income, up 91.2 per cent or $155.7 million to $326.3 million mainly as a result of the increase in Loan Income.
• Commission and Fee Income, up 2.9 per cent or $0.8 million to $26.5 million
• Net Gains on Securities Trading, down a significant 65.0 per cent or $127.2 million to $68.5 million
• Foreign Exchange Trading, up 638.1 per cent or $20.7 million to $23.9 million
• Dividend Income, up 375.9 per cent or $15.3 million to $19.4 million
• Net Interest Income and Other Revenue, up 16.3 per cent or $65.6 million to $467.9 million
• Non Interest Expenses, up 27.3 per cent or $55.8 million to $260.4 million. The main contributor of Non Interest Expenses was Staff Costs which totalled $137.7 million, up 14.2 per cent or $17.1 million on Q107
• Profit After Taxation, up 8.0 per cent or $12.4 million from $154.0 million (Q107) to $166.4 million (Q108)

Total Assets of the Group as at March 31, 2008 stood at $51.8 billion, a fall of 9.0 per cent or $5.1 billion from the prior year

Recommendation
CCMB last closed at a price of TT$0.74. We have forecasted an EPS of TT$0.07 (JMD0.80) for fiscal 2008. At this forecast and the current price, this share is trading at a price to earnings multiple of 10.6 times. At this time, we recommend a SELL on this share.


Nancy Chen
WISE Equity Research Team