Apr 2006 Financial News

NCBJ releases successful half year results

Apr 28, 2006

All Figures quoted in Jamaica Dollars

National Commercial Bank (Jamaica) (NCBJ) posted half year profits of 96 cents for the half year ended March 31, 2006 up 52.38 per cent from the corresponding period in 2005. Quarter on quarter, this was an impressive 113.04 per cent increase from 23 cents in 2005 to 49 cents in 2006.

Net interest income rose 18.75 per cent to $5.872 billion driven by a 21.44 per cent increase in interest income from loans. Net fee and commission income grew 30.00 per cent though Net trading income was down 37.57 per cent largely as a result of the decline in the stock market. Operating Revenue was ultimately up 8.11 per cent.

Operating Expenses fell 7.08 per cent mainly on account of the non-recurrence of losses relating to the Dyoll Group. Operating profit grew 51.32 per cent to $3.086 billion while Net Profit was up 52.06 per cent to $2.357 billion.

The Board of Directors have declared an interim dividend of 14 cents per share to be paid on May 26, 2006 to shareholders on record as at May 12, 2006. At the current price of TT$1.60, NCBJ is currently trading at a running price earnings ratio of 7.77. At this price, we consider NCBJ a BUY.

Sreshtha Tewari
WISE Research Team