April 26, 2019

Highlights of NCBFG’s recent financials for the six months ended March 31, 2019 were provided at its’ Investor briefing by the Group’s Chief Financial Officer, Mr. Dennis Cohen. The Group showcased the following highlights for the quarter:

NCBFG reports net profit attributable to stockholders of $12.5 billion, a decline of 10% or $1.4 billion from the prior year. The prior year’s results included a gain (negative goodwill) of $4.4 billion related to the acquisition of Clarien Group Limited, which was only partially offset by an extraordinary gain of $3.3 billion from the disposal of an associate in the current year’s results.

In addition, there was also amortisation of acquired intangibles following the acquisition of Clarien, with no comparable charge in the prior year. Credit impairment losses increased by $1.5 billion as the prior year included significant loan recoveries for one of the Group’s subsidiaries coupled with growth in the consumer portfolio in the current year.

During the year, the Group made significant investments to improve their card system infrastructure, as well as to upgrade their ABM network and core banking system, in attempt of mitigating fraud or the occurrence of fraudulent activities.

As it relates to segment contribution, the life insurance segment was the top contributor to operating profit amounting to $3.9 billion, in which the increase was mainly due to reserve releases as a result of improving spread performance and changing mortality assumptions.

Additionally, corporate banking, payments services and general insurance segments experienced commendable growth over the prior year, increasing by 71%, 17% and 155%, respectively. Corporate banking and payment services benefited from portfolio growth, while general insurance business incurred lower claims expenses.

For operating income, the improvement was primarily driven by the 15% growth in the loan portfolio which boosted interest income. This was partially offset by a 17% decline in gain on foreign currency and investment activities due to lower gains from the sale of debt securities recorded in the current period.

With respect to the Guardian Takeover, management noted there is still ongoing communication, however with or without Guardian, the Group remains optimistic about the performance of NCBFG.

NCBFG plans on being the premier institution in the region and will continue to seek and seize opportunities to further regional expansion.

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.