Feb 2008 Financial News

CCMB Releases Year End Results (YE07)

Feb 19, 2008

Results for the Year Ended December 31, 2007

All figures quoted in Jamaica Dollars unless otherwise stated

Capital & Credit Merchant Bank Limited (CCMB) reported Earnings Per Share (EPS) of 74 cents for FY07. This represented a significant decrease of 38.3 per cent or 46 cents on the $1.20 EPS of FY06. Q407 on Q406, the Group’s EPS, however, was up 16.7 per cent or 3 cents from 18 cents (Q406) to 21 cents (Q407). The Group has attributed the improved quarter performance to its continued focus on its core banking activities with special emphasis on the credit portfolio.

Financials:
• Gross Operating Revenue for FY07 stood at $5.5 billion, down $607.4 million or 10 per cent on FY06.
• Loan Income up 66 per cent or $321.2 million to $807.6 million (FY06 - $486.4 million) due to expansion in both the retail and corporate loan portfolios.
• Net Interest Income down 10.4 per cent or $95 million to $821.7 million mainly as a result of a fall in Interest on Investments.
• Net Interest Income and Other Revenue down 28.4 per cent or $556.1 million to $1.4 billion
• Non Interest Expenses down 15.3 per cent or $158.7 million to $879.8 million
• Profit Before Taxation amounted to $524.5 million, down 43.1 per cent or $397.4 million on the previous fiscal year.

Total Assets of the Group ended FY07 at $54.7 billion, an increase of 3.5 per cent or $1.9 billion from the prior year.

CCMB last closed at a price of TT$0.95. 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 13.6 times, which is high for this Company. Thus, we recommend a SELL on this share.


Nancy Chen
WISE Equity Research Team