National Commercial Bank Jamaica Ltd. (NCBJ) released their first quarter results yesterday. Haven’t gone through the numbers in detail yet but the company made over J$3 billion between September and December of last year.
$3 billion in 3 months. Not bad. Especially in an environment characterised by declining interest rates: net interest income fell from J$5.42B to J$5.41B for the quarter ended December 2010 relative to the same period last year.
Want to guess how the bank compensated for the decline in interest rates? By reducing the rates paid to customers, which is a smart thing to do AND by focusing on generating additional fee income.
To highlight the importance of the data shown in my post earlier this week, Commission and fee income went from J$1.65B to J$1.83B for the quarter ended December 2010.
That being said, it might make sense to become a shareholder of this bank to benefit from the fees they earn. The trailing PE ratio is 4.35 and the stock is trading at 96% of book value.
Big In Jamaica 