NCB - Financial Fortress at work
14 Nov 2012
"In an environment of significant risk and uncertainty, our stance of building a financial fortress has provided levels of returns based on our keen focus on strength; namely our capital base, our robust levels of liquidity to respond to demands, opportunities in the market place and building out our risk management capabilities." This was the remark of Group Managing Director, Patrick Hylton, at NCB's recent Investors' Briefing. Under the theme, 'Beyond Results' National Commercial Bank Jamaica Limited (NCB) announced its results for the financial year ended September 30, 2012. A net profit of $10 billion was reported representing a 27.7% decrease when compared to the previous financial year ended September 30, 2011. Despite the decrease in profits, NCB remains one of Jamaica's largest and strongest financial groups, and is optimistic about its growth based on the various strategies and operational efficiencies, which have been implemented over the course of the year. Mr. Hylton reiterated, "We have been focusing on three main objectives, increasing productivity, improving operational efficiency and enhancing our customers' experience. We have implemented several strategies which will sustain and maintain our business and we are now very bullish about the future and are sure we will have a good year. For the period under review, NCB's Retail and SME segment reported operating profits of $1.6 billion, an increase of 14.1% over the previous financial year ended September 30, 2011. The increase in the profits was driven mainly by the strong growth in consumer loans. Over the same period, NCB's Insurance and Pension Fund Management segment reported operated profits of $2.4 billion representing a 0.3% decline when compared to the previous year. The reduction was primarily driven by lower insurance income as a result of lower sales of annuity products. Other areas of focus were the Wealth Management segment which contributed operating profits of $4 billion, a reduction of 15.1% when compared to the previous year. Similarly, the Treasury and Correspondent Banking Division reported a decrease of 17.1% in profits, recording $3.6 billion for the period. This reduction was mainly due to lower yields earned on investment portfolios. Despite the decrease in overall profits, NCB is committed to fulfilling its mantra of 'Building a Better Jamaica' and for the financial year, $75 million was donated to its key areas of remit namely, education, community development, sports development and youth leadership and entrepreneurship. Yvonne Clarke, Group Chief Financial Officer in closing, thanked stakeholders and employees for their continued support and affirmed NCB's commitment of Building a Better Jamaica. As reported by the Bank of Jamaica, at 30 June 2012, NCB remains the largest and strongest commercial bank in Jamaica when measured by assets, branch network and capital base.