NCB Financial aiming for return to historic profit levels
Published:Sunday | November 17, 2024 | 12:06 AM
NCB Financial Group Limited, operator of Jamaica’s largest bank, plans to improve profit while reducing debt going forward.
“We are energised by the results we see, but we are not there yet,” said NCB Financial Chairman Michael Lee-Chin at an investor briefing on Friday.
The group reported consolidated net profit of $23.3 billion, or two and a half times more than the $8.5 billion a year earlier. Profit for shareholders was $15 billion. In 2019, the NCB Financial hit a record profit of $30 billion.
“A year ago, customers were overtly not happy,” said Lee-Chin, adding that NCB reduced a chunk of that discontent by being hands-on with customers at their homes and businesses. “We are in the field and dealing with efficiency issues as they come up.”
He pointed to the five per cent annual growth in deposits to $784 billion, as proof of improved customer service and strengthened brand loyalty. Looking ahead, debt repayment will be a key focus, paving the way for increased dividends for shareholders, Lee-Chin said.
“Our assertive goal is to return the group to, and exceed pre-COVID levels in our financial performance by 2026,” said NCB Financial CEO Robert Almeida.
“From a capital perspective, our plan includes combining the earning power of the business, with the monetisation of non-core or underperforming assets. To reduce debt, pay reasonable dividends, and reinvest in growth,” Almeida said.
NCB Financial Group has $2.3 trillion in assets. It’s capital stands at 9.1 per cent of total assets, up from 7.8 per cent a year earlier.
Almeida said that over the past few years, the banking conglomerate has “successfully navigated high inflation and rising interest rates” and maintained a robust financial position.
“The headwinds are shifting to tailwinds,” he said.
NCB Financial reported improved revenue of $120 billion for the year, up four per cent.
The group’s loan portfolio grew two per cent to $626 billion, driven by customer demand, particularly in personal and business mortgages. Additionally, the group experienced a rise in digital loans.