NEWSROOM

Friday, February 27, 2009
We make it happen at NCB

(r-l foreground) Hon. Michael Lee-Chin, Chairman of NCB; Patrick Hylton, NCB Group Managing Director; and Dennis Cohen, Deputy Group Managing Director are all smiles as they entertain questions from shareholders at the 2009 Annual General Meeting. Sharing in the moment are Colin Maxwell, Auditor PricewaterhouseCoopers and NCB Director, Donovan Lewis.

The National Commercial Bank’s 2009 Annual General Meeting held at the Hilton Kingston Hotel recently was teamed with the Bank’s “Money Matters” Expo under the new Corporate Campaign theme “We make it happen”.

Group Managing Director, Patrick Hylton said in his presentation on the results, “We regard the current environment as an opportunity to work more closely with those of our customers who are experiencing genuine hardship and who want to repay their obligations or keep their businesses viable.” Mr. Hylton stated further,  “We have always done that and are ready to do so again as the circumstances dictates.  The recent launch of the NCB Money Matters Campaign is one tangible demonstration that we believe in our customers, now more than ever.”

Despite a turbulent 2008, NCB managed to deliver record profits in what by all indications is a declining economy.  NCB’s 2007/2008 Financial results reflected some $8.7 billion net profit after tax, an increase of more than $2 billion over the previous year, and earnings per share almost tripled to $3.54 – a 32% increase over the previous year.   The individual business segments also excelled with Retail Banking showing an 80% increase in Operating profits and strong loan growth of 27%; Corporate Banking, a 62% increase in its loan portfolio; Treasury and Correspondent Banking, showing a 35% increase in operating profits; Wealth Management – a 21% increase in funds under management; and Insurance – a 38% increase in operating profits.

Results for the first quarter of 2008/2009 were also impressive with net profits of $2.38 billion for the quarter ending in December 2008 increasing by 23% over the quarter ended September 30, 2008.
 
In addition to the support and loyalty of the Bank’s customers and investment in employee expertise, Mr. Hylton credited NCB’s successes to diverse revenue streams, stringent attention to cost management, expert care in maximizing asset and liability portfolios; and pursuing innovative financial solutions to customer needs while  delivering these as efficiently as possible.  “When we achieve record results from our focus on optimizing the gains from our operations, especially in an economically challenging environment, we believe that this should serve as an example and encouragement to others.”

The questions fielded from shareholders at the meeting were diverse, issues ranged from customer service, premises enhancements and banking fees; to concerns about strategies to deal with the worsening economic situation.  In relation to the worsening economic conditions Mr. Hylton advised that when putting plans in place the conservative view was taken that the recession would be long-term. 

Mr. Hylton explained that the Bank has been proactive in putting strategies in place given the current environment. The strategies included Capital Adequacy, Liquidity, Loan Loss Provisioning, and Operating Efficiency.  He elaborated these points by saying that NCB would continue to aggressively build its capital base; adopt a proactive stance to managing liquidity so as to meet contractual and prudential obligations by “solidifying core deposits while reducing overall reliance on volatile funding” and ”consistent monitoring of local and overseas markets for potential threats or opportunities”; providing opportunities for individuals and businesses, be they small saver or sophisticated to investor to “lock in attractive rates on their funds”; significantly enhancing the Bank’s collection efforts so as to stay within the international benchmark of Non-performing-To-Total Loans ratio of 5%; and to tap into the creativity and expertise of its staff so as to “serve customers more efficiently and better prepare us to take advantage of the opportunities which will come with the rebound of the global and local economy.”

“Recognize,” Mr. Hylton said, “that this crisis brings with it the equivalent of equal or greater opportunities… which allow us to unleash our creativity and to find levels of resilience that we often forget that we have when times are good.”  He ended by quoting the words of Rahm Emanuel, US President Barack Obama’s Chief of Staff, “… it would be a shame to waste this crisis.”

Before and after the Annual General Meeting, the Bank’s Money Matters Expo featured an array of products and services offered by NCB and Subsidiary companies, all aimed at encouraging savings and investments. Senior Sales Personnel, Wealth Managers and Insurance Advisors were also on hand to discuss with customers how they could weather the financial difficulties which many are experiencing.