National Commercial Bank Nets J$8.6b For The 9 Months Ending June 2015. Declares J$0.45 Dividend

National Commercial Bank Jamaica Ltd is reporting net profit of J$8.6 billion for the nine months ended June 30, 2015, compared to a restated net profit of $9.0 billion for the prior year. Without one off asset tax expenses, the net profit would have been J$9.0 billion compared to J$8.8 billion in the prior year (2014).

For the 3 months ended June 2015 they are reporting net profit of J$2.9 billion and this was 13% or J$445 million lower than the pro forma normalised net profit for the prior three months ended March 31, 2015 of J$3.3 billion. This was also 1% or $29 million below the previously reported net profit for the three months ended June 30, 2014 of J$2.9 billion.

Other highlights

For the nine month period ending June 2015 they are reporting

  • Net profit of J$8.6 billion, a decrease of 5%, or J$417 million.
  • Earnings per share of J$3.48, decreased by 5%.
  • Cost to income ratio increased to 63.9%, from 63.7%.
  • Total assets of J$508.7 billion, growing by 0.5%, or J$2.6 billion.
  • Return on average total assets decreased to 2.3%, from 2.5%.
  • Total stockholders’ equity of J$87.4 billion, increased by 11%, or J$8.3 billion.
  • Return on average equity of 13.5%, decreased from 15.8%.
  • Net loans of J$162.3 billion, grew by J$10.2 billion, or 7%.

Also of note,

  • Operating income from the Wealth, Asset Management and Investment Banking segment increased by J$187 million due to growth in unit trust and corporate finance fees and gains from investment activities.
  • Corporate Banking Operating profit of $952 million grew by 79%, or $420 million, mainly due to increased operating income of $598 million as a result of higher interest income from loans and net fee and commission income.

For the Three months ended June 30, 2015 compared with the three months ended June 30, 2014 (restated) they are reporting

  • Net profit of J$3.2 billion, a decrease of 8%, or J$265 million.
  • Cost to income ratio increased marginally to 59.8%, from 59.4%.
  • Return on average total assets of 2.5%, down from 2.8%.
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