Another disappointing quarter for NCB
National Commercial Bank Jamaica's profits fell for a second quarter after recording a J$926 million write-down after tax on an impaired loan.
Profits fell 28 per cent in the March 2012 quarter to J$2 billion.
NCB did not disclose details of the loan but said at an investor's briefing on the results Friday that it has increased provision for credit losses to cover large non-performing loans.
At the end of the March quarter, total non-performing loans were valued at J$7.5 billion, representing 7.1 per cent of its gross loan portfolio, in comparison to J$6.6 billion for the similar period in 2011.
Excluding the loan losses related to this single exposure, NCB said its non-performing loans would have totalled 4.4 per cent of its loan book.
For the six-month period, the bank recorded a 22 per cent decline in net profit. It made J$4.8 billion, which was down J$1.4 billion relative to HY2011.
The bank's loan portfolio is now valued at J$103 billion or 28 per cent of total assets. It has a net worth of J$62.4 billion
NCB will pay out less dividends this quarter. It has declared a distribution of 21 cents per share payable May 25 for a total payout of J$518 million to shareholders. Its last dividend payment was 38 cents per share amounting to J$937 million.