PERFORMANCE HIGHLIGHTS

Net Profit of $4,506 million, grew by 44%.	Net Loans of $62.7 billion, grew by 29%.
Earnings per Stock Unit of $1.83, up by $0.56.	Investment Securities of $152.0 billion, grew by 13%.
Operating Revenue of $11,962 million, up 18%.	Customer Deposits of $120.3 billion, up 16%.
Cost to Income Ratio of 50.8% vs. 59.2%.	Return on Average Equity of 29.7% vs. 24.0%.
Risk-Based Capital Ratio of 15.5% vs. 16.4%.	Return on Average Assets of 3.44% vs. 2.73%.

The results for the period include a one-off gain of $517 million. Excluding this gain, the growth in Net Profit over March 2007 was 28%, and the Cost to Income Ratio was 53.1%.

Second Quarter 2007/2008 compared with Second Quarter 2006/2007

• Net Profit of $2,647 million, grew by 64%.
• Earnings per Stock Unit of $1.07 (vs. $0.66).
• Operating Revenue up 20%.

Second Quarter 2007/2008 compared with First Quarter 2007/2008

• Net Profit grew by 42%.
• Earnings per Stock Unit of $1.07 (vs. $0.76).
• Operating Revenue up 13%.

The main contributors to these results are:

NET PROFIT	Qrtr. Ended Mar. 2008 $J'M	Qrtr. Ended Dec. 2007 $J'M	Six Mths. Ended Mar. 2008 $J'M	Six Mths. Ended Mar. 2007 $J'M
National Commercial Bank Jamaica Limited	1280	1290	3110	1915
NCB Capital Markets Limited	604	417	1021	845
NCB Insurance Company Limited	136	92	228	182

SEGMENT RESULTS

A summary of the financial performance of the main revenue segments is highlighted below:

Banking

We continue to focus on our loan growth generally and our retail business specifically. These efforts have resulted in loan growth of $14.1 billion over the March 2007 period and our net loans to total assets ratio has grown from 20.8% at March 2007 to 23.3% at March 2008. Based on the latest commercial banking industry information from the Bank of Jamaica, NCB recorded an increase in net loans of 34.0% when compared to the prior year, exceeding the total industry growth of 27.5%.

Loans and advances totalled $62.7 billion (net of provision for credit losses) as at 31 March 2008 compared to $48.6 billion as at 31 March 2007. The aggregate amount of non-performing loans was $1.6 billion and represented 2.48% of the gross loans compared to 3.49% as at 31 March 2007.
NCB Jamaica Limited remains the largest commercial bank when measured by assets and branch network, and we believe these advantages provide significant opportunities for strong growth.
Excluding the Visa restructuring gain, operating revenues for the Bank increased by 21% over last year as a result of:

• net fee & commission income growing by 22% (volume-driven)
• interest income from loans increasing by 25% due to the growth in the loan portfolio.

Wealth Management

Our wealth and asset management arm contributed operating profits of $1,310 million for the six months ended March 2008. This 14% improvement in operating profits over the prior year is mainly attributable to an 11% growth in net trading income.
Despite the various challenges being faced in the business environment, our industry leader, NCB Capital Markets, which accounts for most of this segment, continued to produce solid results and introduce innovative products to meet the diverse needs of its customers.

Insurance

We continue to experience challenges in this business segment and are currently in the process of a major restructuring exercise for NCB Insurance, the major contributor to the segment results. With our recent strategic alignment of this business with our wealth management segment, we expect to reap future benefits from the synergies. The segment earned operating profits of $248 million for the six months ended March 2008, and NCB Insurance reported a solvency ratio of 14% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission.

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

In pursuing our strategic objectives of:
Providing superior customer service, we:

• Opened a new branch in Mandeville. This branch consolidates the operations of two locations and we now offer a drive-through ABM and drive-through tellers to our customers who access services through this location.
• Installed six (6) new ABM machines across the island.
• We commenced a series of interactive seminars aimed at our SME customers, which focused on offering critical financial guidance to customers.

Empowering employees

• In addition to our continuous training programmes, NCB has also added another prong to its staff development and training by partnering with the University of Toronto’s Joseph L. Rotman School of Management, to design and implement an Executive Education Programme.

Profitable business growth, we

• Continued to improve on the diversification of our income streams as our ratio of non-interest income to operating income increased to 38.1% as at March 2008.
• Recorded a 50% increase in net profit per staff.

BALANCE SHEET

On 24 January 2008, the Board declared an interim dividend in respect of 2008 of $0.15 per ordinary stock unit. The dividend is payable on 22 February 2008 for stockholders on record as at 11 February 2008.

DIVIDENDS

On 24 January 2008, the Board declared an interim dividend in respect of 2008 of $0.15 per ordinary stock unit. The dividend is payable on 22 February 2008 for stockholders on record as at 11 February 2008.

COMMUNITY RELATIONS

We continued our drive towards building a better Jamaica by supporting projects and activities that enrich the quality of life for many Jamaicans. For the quarter ended 31 March 2008, the NCBJ Group contributed $20 million to a number of educational, sporting, health, community development and entrepreneurship projects throughout the island. The main projects and activities were:

Education
Through the group's philanthropic arm, the N.C.B. Foundation, we funded improvements to the infrastructure of school premises. Windward Road Primary and Junior High School in Kingston, received funding towards effecting repairs to and construction of a perimeter fence. At the Duhaney Park Primary School, we assisted in financing the upgrading of the Grade I block which is occupied by approximately 150 students. In addition, the Foundation supported the Jamaica Employer's Federation's sensitising initiative by contributing towards the cost of producing and disseminating the 'World of Work' handbook to high schools across Jamaica. Nineteen students representing the Top Achievers in GSAT and CSEC/CXC, who were also PATH beneficiaries, received financial aid from the N.C.B Foundation. We thank all Keycard holders whose purchases continue to allow NCB to fund educational projects through the Jamaica Education Initiative.

Health
Through the group's philanthropic arm, the N.C.B. Foundation, we funded improvements to the infrastructure of school premises. Windward Road Primary and Junior High School in Kingston, received funding towards effecting repairs to and construction of a perimeter fence. At the Duhaney Park Primary School, we assisted in financing the upgrading of the Grade I block which is occupied by approximately 150 students. In addition, the Foundation supported the Jamaica Employer's Federation's sensitising initiative by contributing towards the cost of producing and disseminating the 'World of Work' handbook to high schools across Jamaica. Nineteen students representing the Top Achievers in GSAT and CSEC/CXC, who were also PATH beneficiaries, received financial aid from the N.C.B Foundation. We thank all Keycard holders whose purchases continue to allow NCB to fund educational projects through the Jamaica Education Initiative.

Entrepreneurship
In keeping with our efforts to champion the development of an entrepreneurial spirit amongst young Jamaicans, we contributed to the Trinityville Skills Training Centre in S1.Thomas to facilitate its expansion. The centre teaches wine-making techniques geared at equipping young persons in that community with the skills to start a small business.

Community Development
In an effort to inspire buoyancy in communities across the island, NCB Foundation continues to support community development initiatives. The Beacons for Peace and Achievement (BPA) received our ardent support which facilitated the staging of Youth Empowerment seminars in communities island-wide. The historic Holy Trinity Cathedral in Kingston received funding towards the cultural preservation and renovation project which is geared at restoring the cathedral's antique murals. City Life Ministries, serving the Southside community in the heart of downtown Kingston, received support for their homework programme.

In addition, we continue to support the fundraising efforts of local service clubs, churches, lobby groups and charities. These entities included the Lions Club of Kingston, Jones Town Baptist Church, American Women's Group ofJamaica and Jamaica Employer's Federation.