Friday, April 23, 2010
NCB scores creditable performance in spite of challenging environment
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| left-right) NCB Executives, Patrick Hylton, Group Managing Director, Yvonne Clarke, Group Chief Financial Officer , and Dennis Cohen, Deputy Group Managing Director and CEO, NCB Capital Markets present the Group's Second Quarter Results for the 2009/2010 Financial Year at a press conference held at the Bank's Headquarters on Friday.
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With a financial quarter characterized by significant challenges in the Jamaican economic environment, the National Commercial Bank Jamaica Limited (NCB) at a press conference held at its head office announced a net profit of $2.55 billion for Quarter ended 31 March 2010 which represented a marginal decline over the previous Quarter.
Patrick Hylton, NCB Group Managing Director in his presentation expressed that the Bank delivered a strong performance this Quarter despite the slight decline in its profits. “NCB’s results show that notwithstanding the significant challenges, difficulties and implementation of the various initiatives which would have had a significant impact on our operations, we were able to produce strong and robust financial results.” stated the Group Managing Director.
Mr. Hylton indicated that by examining the major areas of business operations, the Bank continues to demonstrate its strength and resilience. In singling out and acknowledging the customers and employees for their loyalty and shared vision, Hylton also gave the assurance that the Bank continues to be committed to building a financial fortress that is underpinned by strong capital, strong liquidity, and strong management. This he said contributed to the Bank’s successes this Quarter.
He highlighted initiatives of deepening and broadening customer relations and, pursuing greater efficiencies across all business lines will be integral in the Bank’s continued financial performance.
NCB's strenghts continue to be reflected in the Bank's capital position which continues to be well in excess of the minimum required by it's regulators:
- The Risk-Based Capital Ratio for NCBJ was 15.2% which exceeds the minimum requirement of 10% stipulated by the Bank of Jamaica (31 March 2009 – 13.2%).
- The Capital to Risk Weighted Assets Ratio for NCBCM was 61.0% which exceeds the minimum requirement of 10% stipulated by the Financial services Commission (31 March 2009 – 55.7%).
- The Solvency Ratio for NCBIC was 26.4% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission (31 March 2009 – 17.1%).
The Wealth Management arm of the Bank was lauded for its excellent performance; where NCB Capital Markets, contributed $1.82 billion in operating profits representing 90.8% of the segment's operating profits. NCB Insurance Company recorded a net profit of $883.2 million.
Dennis Cohen, Deputy Group Managing Director and CEO NCB Capital Markets reiterated that despite the decline in the second quarter financial results, the Bank’s performance remains commendable. “The Group is doing far better in all the key leading indicators that effectively drive the sustaining financial performance of the Bank such as the growth in our deposit base, growth in our repo book which has out performed the market and continued growth in our policyholder liability, a key component in the performance of our Insurance segment.” Mr. Cohen also noted that the Bank’s capital levels are very strong and continues to grow as NCB has the largest capital base among the Banking Groups in the Country.
The Board declared an interim dividend of $0.61 per ordinary stock unit. The dividend is payable on 20 May 2010 for stockholders on record as at 07 May 2010.
National Commercial Bank Jamaica Limited (NCB) remains the largest commercial bank when measured by profit, assets, branch network and capital base.
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