Hill
FOR THE quarter ended Decem-ber 2003, NCB recorded a 98 per cent increase in income from loans, as its loan portfolio grew by 14 per cent from $26.4 billion as at September 2003 to $30.1 billion at the end of December 2003.
Interest income from securities increased by 70 per cent to $4.58 billion, while interest expense increased by 51 per cent to $3.17 billion. This translated into net interest income of $2.55 billion, representing an increase of 117 per cent over the prior year. Total income increased by 62 per cent over the quarter to $3.181 billion.
Operating expenses increased at a much slower rate than income to total $2.21 billion, up 39 per cent. Staff costs increased by 26 per cent to $1.19 billion, partially due to new accounting standards which requires the inclusion of the provision for the cost of vacation leave up to the balance sheet date.
DECLINE
Of note, was the decline in provision for credit losses which declined by 16 per cent over the quarter. Total provision as at December 31, 2003 stood at $2.1 billion, which represents 1,345 of non-performing loans compared to 144 per cent as at September 2003.
Profit before tax totalled $970 million, an increase of 156 per cent over the same period last year. Net profit for the quarter turned out at $746.208 million compared to $480.914 million made during December 2002, an increase of 55 per cent, which translates into earnings per share of $0.30. As at Friday's closing price of $16.15, the stock trades at a trailing P/E of 11.75X, the P/E was previously 13.6X (on average cross-listed stocks trade at an average P/E of 15X, which translates to a forward price of $20).
Total assets grew by 3.3 per cent from $145.88 billion as at September 2003 to $150.72 billion as at December 2003.
SHAREHOLDERS EQUITY
Shareholders equity grew by 4.2 per cent to $13.418 billion as at the end of December 2003. Return on average equity improved from 16 per cent to 22.7 per cent, while return on average asset increased from 1.6 per cent to 2.0 per cent. The bank's cost-/income ratio im-proved from 78.6 per cent as at De-cember 2002 to 68.4 per cent as at December 2003.
For the quarter ended Decem-ber 2003, the Board has declared a dividend of nine cents per share (an increase of three cents over the dividend policy of six cents) payable February 23, 2004, to shareholders on record as at February 6, 2004.
The bank under the stewardship of Managing Director Aubyn Hill reported profits of $2.8 billion for the full financial year ended September 30, 2003, representing a significant improvement on the previous year's figure of $1.5 billion. The Group attributes its end of year performance to an increase in loans and securities income as well as net portfolio.
