Jul 2011 Financial News

NCB's profits up by 14 per cent to J$3 billion

Jul 29, 2011

National Commercial Bank (NCB) has reported a 14 per cent increase in net profits to $3.1 billion for the third quarter ending June 30, 2011.

The firm announced yesterday that operating profit increased by 22 per cent during the June quarter compared to the corresponding period last year.

Operating income of $9 billion was 27 per cent higher than the June 2010 quarter. This was boosted by insurance premium income increasing by 600 per cent to $1 billion and gains on foreign currency and investment activities increasing almost fourfold to $903 million. The firm also saw a nine per cent increase in net interest income to $5.4 billion and a two per cent increase in net fee and commission income to $1.6 billion.

Operating expenses increased by 31 per cent to $4.9 billion over the period under review. This was catalysed by an eight per cent increase in staff costs to $2.3 billion and a 80 per cent increse in "other operating expenses".

Earnings per Stock Unit of $1.28 grew by $0.16 or 14 per cent.

Loans and advances, which totalled $90.8 billion (net of provision for credit losses) as at 30 June 2011, grew by $5.7 billion or seven per cent compared to the loan portfolio as at 30 June 2010. Non-performing loans totalled $6.7 billion as at June 2011 ($3.0 billion as at June 2010) and represented 7.3 per cent of the gross loans compared to 3.4 per cent as at 30 June 2010.

The firm said its regulatory provision coverage as at June 2011 was 115.4 per cent of non-performing loans compared to 136.3 per cent at June 2010.


Source:
Jamaica Observer
Friday July 29, 2011

http://www.jamaicaobserver.com/business/NCB-s-profits-up-by-14-per-cent-to-J3-billion_9330158#ixzz1TVI4jzRF