Dec 2009 Financial News

NCB selected Jamaica's top bank

Dec 09, 2009

National Commercial Bank Jamaica Limited (NCB) has been named Bank of the Year 2009 by The Banker, designating it the top entity in its home country.

The magazine cited NCB's positive results and better growth than its competitors, "with a healthy 32 per cent rise in net profits, 15 per cent growth in assets and a reassuring 27 per cent growth in Tier 1 capital" as reasons for its pick.

Jamaica has seven commercial banks in operation, with NCB at No 2 behind Scotiabank Jamaica whose profits, loan portfolio and deposits are larger.

Both banking groups have reported total assets of $315 billion in 2009.

Deal with usaid

The Banker also cited a deal negotiated by NCB with the United States Agency for International Development (USAID) to provide credit facilities with specially agreed terms to the bank's small and medium-size corporate clients.

USAID has extended a 50 per cent guarantee on US$3.3 million of the loan portfolio, allowing SMEs access to cheaper financing, "even in cases where there may be collateral constraints", the magazine said.

NCB group managing director Patrick Hylton said the award was recognition of the strength of the bank and its team.

"Our business model proved effective as greater flexibility was required based on proactive environmental assessment during this challenging period," said Hylton.

"Mindful of these difficulties, our focus has been on strongly serving our customers and supporting them during the time when it matters most."

NCB at yearend September 2009 reported a new milestone of $10.2 billion in profit.

The Banker noted that NCB had remained strong, notwithstanding the "ponzi-like investment schemes that had lost people significant sums of money" and the depreciating currency that has impacted the cash flows of many other businesses.


Source:
business@gleanerjm.com
Jamaica Gleaner
Wednesday December 9, 2009

http://www.jamaica-gleaner.com/gleaner/20091209/business/business7.html