April-27, 2018
NCB Financial Group Limited (NCBFG) held their second quarter Investors Briefing today, at the NCB Wellness and Recreation Centre. Opening remarks were made by Group CFO and Deputy CEO, Dennis Cohen, where he highlighted the financial performance of the group. He indicated not only did NCB report their best six months net profit attributable to shareholders of $11.04 billion but they are the “first Company on The Jamaica Stock Exchange to surpass $10 billion in net earnings after just six months of their financial year.” Notably, he proudly indicated only two other listed Companies have achieved earnings surpassing this $10 billion mark. In addition, he highlighted their Board of Directors declared yesterday, April 27th2018, a dividend payment of $0.70 per stock unit payable on May 28, 2018 to stockholders on record as at May 11, 2018.
NCB’s second-quarter results mark their first income statement consolidated with their newest subsidiary, The Clarian Group. Their results were underpinned with a return on equity (ROE) of 18.5% (2017: 18.1%), return on assets of 2.8% (2017: 3.0%) and cost to income ratio of 68.5% (2017: 64.4%). Year on year, Mr. Cohen provided the following growths for their business units:
- Retail and SME : -2%
- Payment Services: +34%
- Corporate: -18%
- Treasury: +10%
- Wealth: +49%
- Income: +8%
- General Insurance: -77%
As interest rates decline, NCB continues to focus on their non-banking business as they witnessed increased performances in their Investment Banking, Wealth Management and Pension Management Business. Notably, Mr. Cohen highlighted that NCB’s Wealth Management is now the largest contributor to operating profit with $4 billion, 49% increase year on year. In addition, in efforts to grow their non-banking business, NCB listed the largest Initial Public Offering (IPO) on The Jamaica Stock Exchange and offered the largest corporate bond seen in Jamaica’s Capital Market.
The following business highlights were provided year to date:
- OMNI Enhance Campaign in January, under the theme Save, Invest Protect
- Grand opening NCB Fairview
- Reopening NCB Mandeville
Attention was then turned to President and CEO, Patrick Hylton, where he acknowledged NCB’s all-time best net earnings and outlined they have “built an exceptional business with a great outlook”. Mr. Hylton, also indicated the hearing for the Guardian Holdings Limited Takeover will convene on May 15, 2018.
In closing, he reiterated the Company’s three major strategic initiatives:
- Building a World class digital business
- Reinventing core business
- Facilitating Regional expansion
