Why Buy Stocks in the Bank of St. Vincent and the Grenadines

The Bank of St. Vincent and the Grenadines (BOSVG), presumably the largest bank in St.Vincent, has authorized shares for sale on the Eastern Caribbean Stock Exchange. The company is expecting that shares will debut on the first day of trading between $8 and $12 a share. However, depending on investors sentiment shares could fetch a lower figure and the prudent investor could purchase shares in a wonderful bank at a deep discount to net asset value.

BOSVG has a Loan to Deposit ratio (EC$586M / EC$656M) of .89, very much within the ECCB benchmark range of .75 to .85 and anecdotally a much more attractive ratio than National Bank of Dominica, .67 and National Bank of St. Kitts, .28.

If the company's projections are achieved, shareholders could be rewarded with attractive dividend payments

bank of st.Vincent projections

SHAREHOLDER
NO. OF COMMON SHARES
PERCENTAGE
  # COMMON SHARES PERCENTAGE OWNED
East Caribbean Financial Holding Company Ltd 5,100,000 51%
The National Insurance Services 2,000,000 20%
The Public inclusive of employees of the Bank 1,683,750 16.84%
Government of St. Vincent and the Grenadines 1,216,250 12.16%

Dividend policy
In April 2012, BOSGV's Board of Directors approved a dividend policy authorizing 50% of net profit to be distributed to shareholders as dividends

Competition
There are four commercial banks operating in St Vincent and the Grenadines which are listed below. They command a combined asset value of EC $2.1 billion
1. Bank of St Vincent and the Grenadines Ltd. (BOSVG)
2. CIBC First Caribbean International Bank (Barbados) Limited (CIBCFCIB)
3. Bank of Nova Scotia (BNS)
4. RBTT Bank Caribbean Limited (RBTT)

More on how to purchase shares of the Bank of St. Vincent and the Grenadines can be found here

 

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