NCB Financial Group HQ.

NCB Financial Group delivered net profit of $14.7 billion for the nine months ended June 30, 2017, an increase of 48 percent over the prior year’s nine months profit of $9.9 billion. For the June quarter net profit climbed from $3.94 billion to $5.25 billion in 2016 for the group.
The overall performance resulted in earnings per share of $2.14 for the latest quarter and $5.98 for the nine months. Loans and advances, net of provision for credit losses, increased by $32 billion or 18 percent to $212.0 billion at June 30, 2017. The growth was primarily driven by a 23 percent increase in the Retail Banking portfolio. Non-performing loans totaled $5.6 billion at June 2017, representing 2.6 percent of the gross loans compared to 4.8 percent at the end of June 2016 amounting to $8.8 billion.
The board of directors in their report on the nine months results stated that, “Operating income increased by $6.2 billion or 16 percent over the prior year, to $44.2 billion. The improved revenues were primarily driven by: Net fee & commission income growing by 31 percent or $2.4 billion. The growth stemmed from our continued focus on sale effectiveness, improving the penetration into our Investment Banking services, and growing the Unit Trust portfolios, coupled with increases in pension management fees. Additionally, our focus on providing our customers with non-branch channel and digital options has led to volume growth in point of sale and e-commerce transactions. Gains on foreign currency and investment activities growing by $2.5 billion or 80 percent. Net interest income increasing by 5 percent or $1.2 billion, as a result of growth in the loan portfolio.”
“Operating expenses of $28 billion grew by 9 percent or $2.3 billion over the prior year, driven by:  Staff costs increasing by $1.9 billion or 18 percent mainly as a result of the negotiated increases in salaries, wages, allowances & benefits. Other operating expenses growing by $1.1 billion or 11 percent primarily as a result of increased asset tax charges, property and ABM maintenance expenses and professional fees resulting from the execution of strategic initiatives.”
The banking group segments delivered strong gains in revenues and profit except for General Insurance. Retail and SME segment enjoyed an increase of 13 percent in net revenues to $13.86 billion and segment profit rising 33 percent to $1.6 billion.

Advantage General suffered a fall in profit for the NCB Group.

Payment Services recorded an increase of 15 percent in net revenues to $5.2 billion with segment profit rising 31 percent to $1.75 billion, Corporate Banking net revenues grew 39 percent to hit $3.6 billion with segment profit climbing a very strong 64 percent to $2.47 billion. Treasury and Correspondent Banking net revenues increased 35 percent to $6.98 billion and segment profit rose 41 percent to $5.67 billion, Wealth, Asset Management and Investment Banking saw an increase of 25 percent in net revenues to $6.6 billion and segment profit rising 27 percent to $4.6 billion, Life Insurance and Pension Fund Management net revenues grew 14 percent to $5.6 billion, with segment profit rising 22 percent to $3.48 billion. Revenues at the General Insurance segment fell 7 percent to $4.4 billion with segment profit slipping 7 percent to $893 million and Other contributed an increase of 34 percent in revenues to $195 million and segment profit rising 55 percent to $126 million.
The Board of Directors, declared an interim dividend of $0.60 per ordinary stock unit payable on August 29, for stockholders on record as at August 15, 2017. The NCB stock closed on the Jamaica Stock Exchange at $80 on Friday having traded earlier the day at $81 after the release of the results.