Thursday, May 01, 2008
Stellar performance in first six months
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| Patrick Hylton, NCB Group Managing Director stresses a point during his opening remarks. |
In his welcome address at the Investors and Press Briefing held recently to announce National Commercial Bank’s performance for the 2nd Quarter of the Financial Year 2007/2008, Mr. Patrick Hylton, Group Managing Director of the Bank, attributed NCB’s continued stellar performance to accepting challenges and being able to identify the opportunities which exist.
“We have made some positive strides in terms of our performance, notwithstanding some of the challenges,” Mr. Hylton said, “and we are committed to continuing on that course. We believe that there are many opportunities ahead of us; we are constantly raising the bar, because one of the things that is apparent to us is that we can’t judge ourselves only by Jamaican standards. We operate in a global environment – there is one connected world today, and so we have to look at ourselves within the context of a global situation.” The results were among the main areas of business discussed at the meeting.
PERFORMANCE HIGHLIGHTS
Half Year ended March 2008 compared with Half Year ended March 2007
- Net Profit of $4,506 million, grew by 44%.
- Earnings per Stock Unit of $1.83, up by $0.56.
- Operating Revenue of $11,962 million, up 18%.
- Cost to Income Ratio of 50.8% vs. 59.2%.
- Risk-Based Capital Ratio of 15.5% vs. 16.4%.
- Net Loans of $62.7 billion, grew by 29%.
- Investment Securities of $152.0 billion, grew by 13%.
- Customer Deposits of $120.3 billion, up 16%.
- Return on Average Equity of 29.7% vs. 24.0%.
- 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%.
The Board also approved an interim dividend of $0.42 cents per share payable on 22 May 2008 for shareholders on record as at 09 May 2008.
Mr. Hylton affirmed that for the remainder of the financial year, NCB would continue to drive the Bank’s organizational strategy around the Institution’s three pillars of success: that is innovation, expertise and strength. “We have continued to try to be innovative in responding to a changing market place; we recognize that a changing market place is not limited only to products, but it also involves innovation in service standards… innovation in the way in which we execute in our back office… innovation in the way we market to our customers… (and) innovation in almost anything we do.”
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