Jul 2009 Financial News

NCB reports $7.3b nine-month profits

Jul 27, 2009

National Commercial Bank Jamaica Limited (NCB), in its nine-months ended June 2009 financial report, posted net profits of $7.3 billion, a nine per cent year over year increase.

"The results validate the strategic approach and the way we manage our business," stated NCB Group managing director, Patrick Hylton, at a press conference staged after releasing the group's results.

"One of our key attributes is our ability to respond to change and execute in a credible way," he added.

The banking segment's results for the nine months ended June 2009 represent an increase of $64 million or one per cent over the June 2008 period. In its financial report, the bank says, "The consistent results were mainly achieved by growth in the Corporate and Retail loan portfolios (38 per cent and 11 per cent, respectively), which is responsible for a 33 per cent increase in interest income from loans."

Loans and advances totalled $89 billion (net of provision for credit losses) as at 30 June 2009 growing by J$17.9 billion over the balances as at 30 June 2008.

NCB's wealth and asset management segment contributed operating profits of $1.5 billion for the nine month period ended June 2009. NCB Capital Markets Limited (NCBCM), the main contributor to this segment, provided 85 per cent of the operating profits. The result for this segment reflects a 14 per cent reduction from the 2008 period due mainly to a decline in the results of NCBCM.

Said the report: "NCBCM continues to strategically position itself to capitalise on market opportunities, while making other internal adjustments to minimise the negative impact of the current economic environment on its operations."
The Insurance segment has seen growth in operating profits, driven by the performance of NCB Insurance Company Limited. NCB Insurance Company Limited achieved a net profit of $1.2 billion, increasing by $722 million when compared to June 2008.

The recent Bank of Jamaica Commercial Banking Industry review (March 2009) saw NCB holding the premier position in loan growth which surpassed the industry growth of 33 per cent to record a net loan growth of 41 per cent over the prior year. One key strategic measure - net loans to total asset ratio - has improved from 25.41 per cent at June 2008 to 28.57 per cent at June 2009. While Non-Performing Loans as a percentage of the Total Loans has gone up by six basis points to 2.4 per cent, their loan loss provision coverage has been lowered to 152 per cent compared to 154.5 per cent at June 2008, which speaks to the steps they have taken to improve loan delinquency management.

Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20090727T030000-0500_156230_OBS_NCB_REPORTS_____B_NINE_MONTH_PROFITS.asp
Published: Monday, July 27, 2009