Business / Companies
First Bank well placed to surpass the interim performance
31 Aug 2011 at 04:26hrs | Views
An improved performance from FBCH, showing attributable earnings of $3.9 million, up 158% year on year. The improved performance was on the back on a solid performance by the bank. Total income grew 39% to $24.4 million driven by fee and commission income and gross profit from Turnall.
Funded income contributed 24% to total income as NIM eased on increased cost of funds on increased contribution of wholesale deposits. The bank contributed 46% to group total income, Turnall 35%, mortgage business 11%, reinsurance 6% and others 2%.
The cost to income ratio improved to 74% from 84% as the group benefited from the staff rationalisation. An interim dividend of 0.169 US cents a share was declared implying a dividend yield of 2.1% and a cover of 3.9 times.
The commercial bank contributed 44% to group PBT, Turnall 30%, mortgage business 16% and reinsurance 12%. The group increased its stake in Eagle Insurance to 95% and opened a new Micro Finance business. The back office operations of the building society and the bank were successfully merged.
The group balance sheet increased 12% from December 2010 to $264.7 million driven by a 22% and 11% growth in advances and deposits, respectively. Lines of credit amounted to approximately $40 million. Gross NPL to advances deteriorated to 4.7% from 3.5%.
The mortgage business continues to grow propelled by the tie up with NSSA. The ecommerce drive is expected to result in improved efficiencies, reduced costs and the launch of new products.
The market currently values FBCH's 60% stake in Turnall at $42.3 million against group market cap of $70.5 million. The stock has had a strong rally gaining 129% on a YTD basis.
Management reports that the group is well placed to surpass the interim performance.
Funded income contributed 24% to total income as NIM eased on increased cost of funds on increased contribution of wholesale deposits. The bank contributed 46% to group total income, Turnall 35%, mortgage business 11%, reinsurance 6% and others 2%.
The cost to income ratio improved to 74% from 84% as the group benefited from the staff rationalisation. An interim dividend of 0.169 US cents a share was declared implying a dividend yield of 2.1% and a cover of 3.9 times.
The commercial bank contributed 44% to group PBT, Turnall 30%, mortgage business 16% and reinsurance 12%. The group increased its stake in Eagle Insurance to 95% and opened a new Micro Finance business. The back office operations of the building society and the bank were successfully merged.
The mortgage business continues to grow propelled by the tie up with NSSA. The ecommerce drive is expected to result in improved efficiencies, reduced costs and the launch of new products.
The market currently values FBCH's 60% stake in Turnall at $42.3 million against group market cap of $70.5 million. The stock has had a strong rally gaining 129% on a YTD basis.
Management reports that the group is well placed to surpass the interim performance.
Source - Imara Stockbrokers
