Apr 2012 Financial News

NCB profit plunges with loan loss

Apr 30, 2012

NATIONAL Commercial Bank Jamaica (NCB) posted net profit of $4.8 billion for the six months to March 31.

The earnings represented a $1.4 billion, or 22.1 per cent decline from the comparative period in 2011.

NCB incurred account loan and impairment losses of $926 million after-tax, resulting from one exposure, it said.

The bank reported a 3.7 per cent, or $631 million increase in operating income for the review period due to higher gain on foreign currency and investment activities, net fee and commission income and net interest income.

However, operating expenses increased by $2.3 billion, or 24.2 per cent, for the six months ended March 31, 2012 compared to the corresponding period in 2011.

Business segments, which comprise NCB's commercial banking activities had combined operating profits of $3.3 billion for the six-month period in 2012, compared to $4.9 billion in the corresponding period in 2011.

Most of the decline was attributed to the corporate banking segment which recorded a $1-billion fall in operating profits due to loan losses on a large non-performing loan.

The bank's loans and advances totalled $103.1 billion (net of provision for credit losses) as at March 31, 2012, representing 16.8 per cent, or $14.8 billion growth over 12 months to March end.

Non-performing loans totalled $7.5 billion as at March 31, 2012 ($6.6 billion as at March 31, 2011) and represented 7.1 per cent of the gross loans compared to 7.3 per cent as at March 31, 2011.

As reported by the Bank of Jamaica, at December 31, 2011, NCB held the largest market share in loans (38.9 per cent) and deposits (37.6 per cent) in the commercial banking industry, and remains the largest commercial bank in Jamaica when measured by assets, branch network and capital base.


Source:
Jamaica Observer
Sunday April 29, 2012

http://www.jamaicaobserver.com/business/NCB-profit-plunges-with-loan-loss_11358169#ixzz1tWzjzxeC