NCBJ Released H1 Results

In the first six months of the financial year NCBJ reported earnings of $4.5Bn (EPS:$1.84), which represented a 5.1% decline over the corresponding prior year period.



Operating income declined by $26Mn, when compared with the six months ended March 31, 2012, mainly as a result of a $2.4Bn reduction in gains on foreign currency and investment activities, due to losses arising from the group’s participation in the debt exchange and the private debt exchange. This decrease was significantly offset by growth in net interest income (NII), which increased by 9.8%, primarily due to growth in loans and investments. Net fee and commission income also saw growth attributable to increased card transaction volumes as well as increased fees earned from new loans. Premium income amounting to $1.5Bn (+73.1%) due mainly to the inclusion of general insurance premiums given the acquisition of Advantage General Insurance Company also added meaningful support to non-interest income.

At a price of 18.14, NCBJ is trading at a P/E and P/B  of 4.55X and 0.66X, respectively.