The National Commercial Bank Jamaica Ltd (NCB) announced its unaudited financial results for the third quarter ended June 30, 2012, at its recent Investors’ Briefing. NCB reported a net profit of 2.6 billion for Quarter 3, which represents a 29.1% increase, when compared to the previous quarter ended March 31, 2012. Year-to-date, NCB reported net profits of $7.4 billion as June 30, 2012 allowing NCB to retain its position as Jamaica’s largest and strongest financial group.
Under the theme, Investing in our Business for Future Success, Patrick Hylton, NCB Group Managing Director acknowledged the global climate remains tough. “Putting into context our performance, with the current Jamaican and global economic crisis, we are doing well and we are emboldened and enthusiastic about our future prospects.”
Within this context, Dennis Cohen, Deputy Group Manager Director, highlighted the ways in which NCB is striving to meet all the financial needs of its customers. “We understand that times are hard and so we aim to offer end-to-end financial solutions to our customers to cater to all their financial needs. We continue to do this through the expansion and revamping of our product offerings; the acquisition of Advantage General Insurance will further complete our suite of products, with our entry in the general insurance market.”
In providing financial highlights information NCB Group Chief Financial Officer, Yvonne Clarke cited that, “We are investing heavily in activities that will drive our strategies.” She further explained that, “The NCB team is committed to reaping from these investments as the costs are painful, but the future benefits are advantageous.”
For the nine months ended June 30, 2012, NCB’s Insurance and Pension Fund Management segment reported operating profits of $2.1 billion which reflects an 18.1% increase over the nine months ended June 30, 2011. This was attributed to the increases in gains on foreign currency and investment activities, net interest income, and the fee and commission income.
For the same period, loans and advances, which totaled $107.6 billion as at June 30, 2012, grew by 18.4% when compared to the loan portfolio as at June 30, 2011. Non-performing loans totaled $7.9 billion and represented 7.1% of the gross loans compared to 7.3% as at June 30, 2011. Our regulatory provision coverage was 114.2% of non-performing loans compared to 115.5% for the previous year.
Other areas of focus were the Wealth Management segment which contributed operating profits of $3.2 billion for the nine months under review. This represents a 3.8% decrease when compared to the previous period. Similarly the Retail and SME segment recorded operating profits of $839 million, down by 25.9% for the same period last year. The decline in the operating profits was driven mainly by reduced yields on loans, increased staff cots and operating expenses associated with the implementation of a number of revenue and efficiency related projects.
A total of $22 million was contributed towards a number of initiatives supporting nation building. Key focus was given to the areas of Education, Community Development and Youth Leadership.
Despite the decrease in the year over year profits, NCB maintains its focus on growth in its core business and remains in pursuit of satisfying our customers’ financial needs. In closing, Mr. Hylton stated, “We are grateful for this opportunity and thank our stakeholders who continue to trust us with their business and look to us as financial partners, and as we look towards the future, we are confident that the organization will remain on the trajectory of continued growth and development.”