The Board of Directors is pleased to release the following un-audited results for National Commercial Bank Jamaica Limited (NCBJ) and its subsidiaries for the nine months ended 30 June 2009.

PERFORMANCE HIGHLIGHTS
Nine Months ended June 2009 compared with Nine Months ended June 2008

• Net Profit of $7,340 million, grew by $583 million or 9% .
• Earnings per Stock Unit of $2.98 increased by $0.24 or 9% .
• Operating Revenue of $19,807 million, improved by 9% .
• Cost to Income Ratio of 48.9% vs. 51.0%.
• Risk-Based Capital Ratio of 13.66% vs. 14.09%.
• Net Loans of $89.0 billion, grew by 25%.
• Investment Securities of $159.2 billion, increased by $8,304 million or 6%.
• Customer Deposits of $132.8 billion, increased by 11%.
• Return on Average Equity was 28.37% vs. 29.54%.
• Return on Average Assets was 3.25% vs. 3.37%.

Quarter ended June 2009 compared with Quarter ended June 2008

• Net Profit of $2,714 million, increased by 21% or $463 million.
• Earnings per Stock Unit grew by $0.19 or 21% .
• Operating Revenue increased by $694 million or 11% .
• Return on Average Equity was 30.47% vs. 27.93%.
• Return on Average Assets was 3.53% vs. 3.28%.

SEGMENT PERFORMANCE
Banking
The Banking segment’s results for the nine months ended June 2009 represent an increase of $64 million or 1% over the June 2008 period. The consistent results were mainly achieved by growth in the Corporate and Retail loan portfolios (38% and 11%, respectively), which is responsible for a 33% increase in interest income from loans.

Loans and advances totalled $89.0 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. Based on the latest Bank of Jamaica Commercial Banking Industry review (March 2009), NCBJ had the largest market share of net loans recording growth of 41% over the prior year, surpassing the industry growth of 33%.

Our net loans to total assets ratio, one of our key strategic measures, has improved from 25.41% at June 2008 to 28.57% at June 2009. Non-performing loans totalled $2.2 billion as at June 2009 which represented 2.40% of the gross loans compared to 2.34% as at 30 June 2008. The growth in gross loans and the enhancement of our delinquency management and loan origination processes in the current economic environment have contributed to this stable ratio. Our provision coverage as at June 2009 was 152.0% compared to 154.5% at June 2008.

For the nine months ended 30 June 2009, provision for credit losses totalled $772 million compared with $307 million for the period ended 30 June 2008, both as a result of the portfolio growth as well as the impact of the challenging economic environment on our customers. We have responded to the challenges by implementing a number of measures to assist customers, thereby mitigating the impact on our loan portfolio.

NCBJ remains the largest commercial bank when measured by profit, assets and branch network, and we believe these advantages provide significant opportunities for continued growth.

Wealth Management
Our 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% of the operating profits. The result for this segment reflects a 14% reduction from the 2008 period due mainly to a decline in the results of NCBCM. 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.

Insurance
Our insurance segment contributed operating profits of $1.3 billion for the nine months ended June 2009, representing an increase of 158% or $772 million over the corresponding period of the prior year. NCB Insurance Company Limited (NCBIC), the major contributor to this segment achieved a net profit of $1.2 billion, increasing by $722 million when compared to June 2008.

Overall, our segment results reflect the careful and strategic management of customer relationships and needs, expert management of interest rate spreads and liquidity and proactive and effective management of our risks and costs.

We remain committed to and continue to pursue our strategic objectives and most importantly to keeping our organisation strong for all our stakeholders. This strength is reflected in our capital position as follows:

CAPITAL
The Group’s Stockholders’ Equity of $37.7 billion increased by $5.2 billion or 16% when compared to 30 June 2008.

• The Risk-Based Capital Ratio for NCBJ was 13.66% which exceeds the minimum requirement of 10% stipulated by the Bank of Jamaica.
• The Capital to Risk Weighted Assets Ratio for NCBCM was 58.32% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission.
• The Solvency Ratio for NCBIC was 19.6% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission.

DIVIDENDS
On 23 July 2009, the Board declared an interim dividend of $0.10 per ordinary stock unit. The dividend is payable on 24 August 2009 for stockholders on record as at 10 August 2009.

AWARDS
During the June 2009 quarter, NCBJ was the recipient of World Finance’s “Most Innovative Bank’ Award. Jamaica was listed among 36 countries whose financial institutions were being recognised by World Finance, a leading London-based financial magazine. The World Finance Awards identify industry leaders, individuals, teams and organisations that represent the benchmark of achievement and best practice in the financial and business world.

COMMUNITY RELATIONS
In pursuit of our objective of Engaging in Nation Building, we donated over $11 million during the quarter in support of projects in the areas of Education, Health, Sports, Entrepreneurship and Community Development.

Education
We donated over half a million dollars directly to education-related activities during the quarter. Among the institutions that benefited were the Portland High School, Mount Nebo Basic School in Manchester, St. Vincent Strambi Catholic High School in St. Elizabeth and the Byndloss Early Childhood Education Centre in St. Catherine.

Youth Leadership
We continue to support initiatives that empower young people and encourage them to become agents of change in their communities. $1.4M was committed to various youth-led initiatives, including the Ministry of Education Region 3 Browns’ Town Math Camp, Caribbean District of Optimist Club Essay Competition and the Caribbean Community Teaching Workshop.

Community Development
We also donated to nine charities during the quarter and supported over 50 community based projects across the island. The charities included the Clifton Boys Home, Sir John Golding Rehabilitation Centre, Mustard Seed Communities, SOS Children Villages, Garland Children’s Home, St. Patrick’s Foundation, Windsor Lodge, and the Jamaica Christian Boys Home. In addition, the Jamaica Red Cross received financial assistance and The Rotary Club of Santa Cruz benefited from a donation towards a medical ambulance for its community.

Sports Development
The N.C.B Foundation has incorporated sports development in its areas of focus with the aim of encouraging academic development of our youth through sports. We have committed $6.5M for sports development programmes at the public and private sector levels. The Foundation has renewed its partnership with both the MVP Track Club and the Jamaica Amateur Athletics Association (JAAA) as they pursue their respective mandates to provide development support for aspiring local athletes.

We wish to express our deep appreciation to our staff members for their committment and dedication to excellence in their work and for their enthusiastic involvement in the Group's philanthropic pursuits. We also wish to express our sincere gratitude to our customers for their loyalty, confidence and continued support during these times when making a difference matters most.