NATIONAL COMMERCIAL BANK

The National Commercial Bank Jamaica Ltd. (NCB) was established over 170 years when in 1837 the Colonial Bank of London, England, opened its doors on Harbour Street in Kingston under the trade name Barclays Bank. Through a series of mergers and acquisitions, the Bank eventually became known, in 1977, as National Commercial Bank Jamaica Limited. Presently National Commercial Bank Jamaica Limited (NCB) is the only commercial bank indigenous to Jamaica that is owned and operated by Jamaicans in Jamaica. Through its innovation, expertise and strength National Commercial Bank is the leading financial institutions in Jamaica, with an asset base of $334 Billion as at March 2010. Within the financial industry NCB have been recognised by the following bodies

Jamaica Employers Federation- who awarded NCB as the Overall Winner

for Employer of Choice, #1 Employer of Choice for the Large Company Category and the #1 Highest Employee Satisfaction.

World Finance recognized NCB as the Most Innovative Bank of the Year

2008/2009 for the second consecutive year, recognizing the Banks many initiatives in the creation and development of products and services.

The Banker awarded NCB Bank of the Year Jamaica for 2009 for the second

consecutive year.

Rational for selecting National Commercial Bank Of the seven commercial banks National commercial bank is the only commercial bank indigenous and continues to compete in its class as the most dominant institution in Jamaica. Michael lee Chin CEO and his team of experts have to steered the company to the top within the industry. The company has seen a steady increase in profit since 2006 to present net profit of $6.6 billion reported in 2006 which has increase steadily to $11.07 billion reported 2010. The company boasts an asset base of $334 billion with a positive net worth of $48 billion. The company continues to do well as the unaudited financials of the last quarter ended March 2011show the following position when compared with quarter ended December 2010

Nat profit $ 3.12 billion a 3.8% increase or $113 million Earning per stock unit $1.27 increase by 3.8% Cost to income ratio 53.82 from 52.80 Return on asset 3.63% from 3.55%

The figures when compared to that of the leading financial institution in terms of profitability are much more encouraging and they continue to do well in this hostile market.

Share analysis
Today trading on both the Jamaica and Trinidad & Tobago Stock Exchange national commercial bank shares are being sold at $23. At the end of the financial year 2006 the

stock price for NCB shares was $18.92 by 2007 they have seen a significant increase of 18.39% to $22.40. Thereafter the stock price trended downward by 10.7% and 35% in 2008 and 2009 to $20.00 and $13.00 respectively. However once again in 2010 they have seen a

significant increase of 34.65% when compared with the previous year hence the stock prince closed at $ 17.51 as at year ended September 2010. Over the years the share holders have seen a moderate return on average equity of the mid to upper 20% figure it peaked in 2008 at 29.07% and ended at 24.66% in 2010. Earnings per share has decrease from 8.17 in 2006 to 3.89 at year ended 2010 despite being more profitable. It is in our opinion that the earning per share ratio increase may be attributed to the increase in trading of NCB stock in 2004. Whilst this is relatively low when compared to previous years it comparative to that of the leading competitor Given economic melt down and the recessionary period the new entrance within the industry National Commercial Bank has held its own and as steadily moving in the direction as the leading financial institution in Jamaica and has once again proven to be a force to be recon with, hence our decision to share in this noble company.

THE BANK OF NOVA SCOTIA JAMAICA

The Bank of Nova Scotia Jamaica limited Scotia Jamaica is a subsidiary of the bank of Nova Scotia and the leading bank in Jamaica. The have maintained a strong presence in Jamaica since 1889 and have maintained the position market leader within the industry. What began with a small banking office in Kingston is today, a sophisticated island wide network of 35 branches and 3 sub branches offering a complete line off retail and commercial services through its network of 35 sophisticated branches. Through its continued growth and development Scotia bank Jamaica has established its reputation as a strong, stable, and reliable financial institution backed by the experience and stability accompanying a century of continuous and progressive banking operations in Jamaica. Within the industry Scotia Bank Jamaica have been by the following bodies:

Oliver Wyman Consulting Group - Rated Scotia Bank amongst the top ten best performing financial services institution in the world.

Global Financing- Best Foreign Exchange Bank in Jamaica, 2009 Latin Finance- Bank of the Year in Jamaica, 2008 Global Financing - Bank of the year in Jamaica, 2008

Rational for selecting the bank of Nova Scotia Jamaica The bank of Nova Scotia Jamaica commonly referred to as Scotia Bank Jamaica is longest serving commercial bank in Jamaica since 1889. It is the only financial institution to have weathered the Storm of the 1998 financial melt down in Jamaica hence it is recognized for its strengths and reliability amongst the Jamaican people. They have also continued to remain the most profitable l of the commercial banks in Jamaica in 2006 they have recorded a net profit of $9.3 billion which grew $ 15.4 in 2009 however there was a marginal decline of 6.2% in 2010 when they reported a net profit of $14.4 billion dollars. The companys asset based has also increased significantly over the years from $199.84 billion in 2006 to $325.8 billion in 2010. The company continues to do well as unaudited financial of the second quarter ended April 2011 reveals the following compared to corresponding period ended April 2010 Net income 5.44 billion decrease by 0.022 billion Earning per share $1.69 decrease by 1.16% Return on average equity 19.05% Cost to income ratio 52.39 The CEO Bruce Bowen remain positive as he believed that there focus on strategic imperatives will derive long term growth and value to its share holders.

Stock Analysis
The number of stock units as at the end of 2006 stood at 2,927.232 units which was increased the following year to 3,111,573 and has remain same to date. The stock price at the end of the financial period 2007 was $22.06 however this has seen a slight decrease of 3.6% and 4.85% in 2007 and 2008 lower the stock unit value to $21.25 and $20.22 respectively. The Scotia bank stock has experienced a significant decrease of 9.08% to 18.38 in 2009 however it recovered with a 10.72% increase in 2010to $ 20.35 per unit. Over the years 2006- 2009 share holders have seen a significant return on there equity at an average of 25.5% with a decease of 5.57 % to 20.78 in 2011. Earning per stock unit has increased from 2.32 in 2006 to 3.34 in 2010 despite a slight decrease of 0.24 when compared with 2009 where return per stock unit was at 3.58.

The company continues to do well and has surpassed the industry standard and despite the slight decrease in the profitability are optimistic that Scotia Jamaica will continue to grow and add value to its share holders.

http://www.jncb.com/aboutus/investor-relations/annualreports http://scotiabank.com/images/jm/en/files_AboutScotiabank/9881.pdf