KINGSTON, Jamaica – Registering a net profit of $6.6billion for the 2006/7 financial year ending September 30th, National Commercial Bank Jamaica Limited (NCB) has exceeded profits recorded in the previous financial year by 20%, an increase of $1.1 billion.
The robust growth achieved by the Bank and its subsidiaries, which include NCB Capital Markets and NCB Insurance Company, is driven primarily by a sustained focus on the core business, resulting in higher earnings from major income streams.
At an Investors’ Briefing held at the Bank’s corporate head office recently, NCB’s senior executives explored the 2006/7 financial results and the Bank’s journey towards the continuum of success. Addressing the gathering of investors, financial analysts and members of the media, NCB’s Group Managing Director, Patrick Hylton reinforced the Bank’s continued focus around driving the financial institution forward. “We have continued to focus on operational efficiency and delivering value to our customers,” Mr. Hylton outlined.
In her overview of the Bank’s performance, Group Chief Financial Officer, Yvonne Clarke stressed that the high profitability ratios and overall outstanding achievements for the financial year were due to a significant “team effort”. She further lauded the bank’s employees for their deep and enduring dedication. “Congratulations are due to the entire NCB family,” she remarked proudly.
Among the major highlights, the Board approved a final interim dividend for 2007 of $0.17 payable to stockholders on record as at November 2007. The earnings per stock unit for the year rose to $2.68, compared to $2.23 for the corresponding period last year, while the return on average stockholders’ equity for the year was 24.84%, up from 23.96% for the comparative prior year. Additionally, the Group’s total assets grew by 14%, representing an increase of $31.1 billion when compared to the previous year.
The total revenue for the year was $33.7 billion, signaling an increase of $3.7 billion or 12% over the previous year, with the two largest segments, Banking and Wealth Management, contributing 70% and 23% respectively to the overall Group revenue. Total customer deposits also increased by 20%.
Net interest income increased by $1 billion or 9% due mainly to the continued growth in the loan and investment portfolios. Mainly attributable to fees generated from card and other retail banking related products, net fee and commission income increased by $581 million or 18%. Net trading income, which is encompasses foreign exchange, fixed income and equity trading gains, increased by $845 million or 36%.
From the insurance segment, premium income increased by $134 million or 34% over the prior year due mainly to annuity premiums earned since the introduction of this product in September 2006.
“NCB continues to make unparalleled strides in firmly positioning itself as Jamaica’s leading financial services entity, offering our customers innovative and competitive products and services”, stressed Mr. Hylton.
Celebrating 170 years of service to the people of Jamaica this year, NCB has renewed its commitment to its stakeholders. “With a renewed focus on customer service, we not only want to satisfy our customer, we want to delight them,” added Mr. Hylton.
Extending itself beyond the boundaries banking, stock brokerage and insurance, NCB continues to be a proactive corporate leader engaging in nation building.
