Mar 2009 Financial News

NCBJ remains on top of its game

Mar 25, 2009

The National Commercial Bank of Jamaica Limited (NCBJ) which is listed on the local stock exchange hosted their Annual Investors' Briefing at the Hyatt Regency Hotel in Port of Spain earlier this month.

A team of senior officials from the bank were in Trinidad and Tobago to update investors on the company's performance for the financial year ended on September 2008 and the first quarter of the new financial year which wrapped up on December 30 last year.

Despite the global economic downturn which has caused many larger, more well capitalised companies in more developed nations around the globe to go belly up, seek bailouts or scale down their operations, the Jamaican company which is cross listed on the local and Jamaican stock exchanges has shown year over year growth for at least the last three years, with their earnings per share up by five US cents for the last year.

This shows an increase of 24 per cent from the previous year.

Overall, the company's financial records showed a net profit of US$123 million for their last financial year and directors said they are looking forward to another year of profitability, despite the tough market conditions which now exist for financial companies.

While the group's Chief Financial Officer, Yvonne Clarke did state that the bank had some exposure to the failed investment bank Lehman Brothers, she said the bank's strategies have set a foundation for sustainable growth.

Group managing director, Patrick Hylton said the success is partly due to the company's "proactive stance." He assured the audience members present at the briefing that the company would continue to maintain the right focus as both the year and the financial downturn went on.

Hylton said the company was not going to be paralysed by fear, despite the present state of some financial markets elsewhere.

With an air of optimism the company director said that the present economic conditions make for very interesting times. He said the present business climate though characterised by rapid change and global financial turmoil will actively work to change the landscape of the world financial system.

The regional business head said most former economic and business theories have now been dispelled and the world is seeing itself stuck in a moment where risk aversion is the manner of the day.

Business leaders from every circle have argued that in the past, companies have been known to reward employees who took big risks that paid off, and therefore they nurtured an attitude of greed and other win at all costs mannerisms.

However, many others like Hylton believe this attitude is changing, as international companies which have been seen as beacons of success in the past are now unravelling before our eyes.

But despite the climate of change and the general pessimistic air that has been plaguing some aspects of business, Hylton has assured investors that NCBJ has tweaked their business model and is prepared to face whatever may come and can embrace the market changes that lie ahead...and still come out on top.


Source:
Aretha Welch
Trinidad Express
Wednesday, March 25th 2009

http://www.trinidadexpress.com/index.pl/article_business_mag?id=161456841