Jun 2008 Financial News

SBTT Releases Half Year Results

Jun 13, 2008

Scotiabank (Trinidad & Tobago) Limited
Results for the Half Year Ended April 30, 2008

Earnings Per Share
For the Half Year Ended April 30, 2008, Scotiabank (Trinidad & Tobago) Limited (SBTT) reported Earnings Per Share (EPS) of 120.4 cents, up 19.7 per cent on the corresponding EPS of 100.6 cents in FY07. Q208 on Q207, this figure was up 21.7 per cent from 48.3 cents to 58.8 cents. The Directors have attributed the Group’s continued success to the commitment and dedication of its employees and the implementation of strategic initiatives, bouyed by a favourable economy.

Financials
• Net Interest Income, up 21.4 per cent or $62.7 million to $355.1 million
• Other Income, up 26.0 per cent or $25.7 million to $124.6 million
• Net Interest and Other Income, up 22.6 per cent or $88.4 million to $479.7 million
• Non Interest Expenses, up 30.9 per cent or $49.3 million to $208.8 million
• Profit After Taxation, up 19.7 per cent or $35.0 million to $212.3 million

Return on Equity and Return on Total Assets was 26.1 per cent and 3.5 per cent respectively (2007: Return on Equity – 25.4 per cent, Return on Total Assets – 3.6 per cent)

Dividends
The Directors have resolved that the Bank pay a second interim dividend of 23 cents per ordinary share (2007: 21 cents) on June 27, 2008 to shareholders on record as at June 5, 2008.

Recommendation
SBTT last closed at a price of $36.40 on the local exchange. In light of the current results, we are revising our forecasted EPS for FY08 to $2.45. At the current price and the revised forecasted EPS, this share is trading at a P/E multiple of 14.9 times. We currently recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team