May 2006 Financial News

DBG Releases Year End Results

May 15, 2006

All figures quoted in Jamaica dollars

Dehring, Bunting & Golding (DBG), reported Earnings Per Share of $2.84 for the year ended March 31, 2006. This represented a 7.17 per cent increase over 2005's year end Earnings Per Share of $2.65. Quarter on quarter however, Q4-2006 was down 5.93 per cent in comparison to Q4 2005.

Year on year, Net Interest Revenue was up 22.84 per cent to $773.844 million as Interest Revenue rose 2.41 per cent to $3.115 billion while Interest Expense was down 2.93 per cent to $2.342 billion.

Despite a 32.05 per cent increase in Gains on Securities Trading, Other Operating Revenue was up minimally 1.45 per cent due to a 34.89 per cent decrease in Foreign Exchange Gains and a 26.29 per cent decrease in Fees and Other Income. Net Revenue ultimately rose 9.59 per cent to $1.815 billion. Operating Expenses grew 9.85 per cent while Profit Before Tax rose 9.31 per cent to $886.429 million. The Company’s effective tax rate fell from 1.02 per cent to 0.46 per cent.

Net Profit After Taxation was up 9.93 per cent to $882.319 million. DBG closed in Jamaica at $19.25 on Friday and in Trinidad at TT$1.70. At the current price (TT), DBG is currently trading at a price/earnings ratio of 6.30.

Sreshtha Tewari
WISE Research Team