NCB Financial Group Limited (NCBFG) posted a net profit of J$30.7 billion for the financial year ended September 30, 2019, and asset growth of 65 per cent or J$632 billion over the prior year to J$1.6 trillion.
Using historic values for the Jamaican dollar vs the US dollar (US$135.16 to J$1on September 30, 2019), assets in September were US$11.83 billion.
The company has grown steadily and currently servesmarketsin21 countriesacross the English and Dutch Caribbean, including Trinidad & Tobago, Barbados, Jamaica, Curacao, Aruba, St Maarten and Bonaire.
The growth in the asset base at year end was primarily due to the consolidation of Guardian Holdings Limited (GHL), with total assets of J$580 billion. Abouthalf of groupassets are now outside of Jamaica.
NCBFGis now battling for the position of largest financial group within the Caribbean. It is contending for the position withRepublic Financial Holding Company Limited, which acquiredthe operations of Scotiabank in seven markets this year; and GNB Financial Group Limited, which is set totake a controlling stake in FirstCaribbean International Bank (FCIB)via a66.73 per centof the shares in the banking group, leaving parent company CIBC with the remaining shares.
Previous to the GNB/CIBC announcement on November 8, CIBC ranked second in size as a financial group in the Caribbean. It hadUS$11.5 billion in assets and market capitalization of US$2.1 billion, as at July 31, 2019.
GNB, a groupwholly owned by Starmites Corporation S.ar.L, the financial holding company of the Gilinski Group, aims to addCIBC’s 16 Caribbean markets to its own operationin Colombia, Peru, Paraguay, Panama, and Cayman Islands.
GNB’sexisting assets, as reported on Friday, are valued atapproximately US$15 billion in combined assets.
While up to date information is unavailable, as at September, the banking group holding the Caribbean region’s largest asset base was Republic Financial Holdings.
InSeptember, RFHCsecured the approval of the Eastern Caribbean Central Bank (ECCB) for the transfer of the assets and liabilities of the Bank of Nova Scotia (BNS) to RFHL in Anguilla, the Commonwealth of Dominica, Grenada, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines.
RFHListherebyexpected to add to an asset base ofUS$12 billion.
For NCB Financial group, the results were historic,with net profit attributable to stockholders at J$29.6 billion, an improvement of sixper cent or $1.6 billion over the prior year.
The company leaped several regulatory hurdles to concludeacquisition of a majority stake in GHL, a major financial services group providing life, health, property and casualty insurance, coupled with pensions and asset management services.
Performance was also bolstered by the divestment of a stake held inJMMB in the first quarter resulting in a $3.3 billion gain from the disposal; a$2.3 billion provisional gain on the revaluation of the associate interest in GHL following the acquisition of the majority interest in the third quarter; andthe sale of Advantage General Insurance Company Limited (AGIC) at the end of the fourth quarter, realising a gain of $2.6 billion.
Banking and investment activities grew - despite credit impairment provisions - by 16 per cent, or $10.3 billion, to $76.1 billion with net interest income increasing by $11.6 billion or 33 per cent. Net fee and commission income grewby 21 per cent or $3.3 billion.
Customer deposits ticked past the $500 billion mark, meanwhile.Some $22billion in non-performing loans were attributed to consolidation with Clarien Bank and Guardian Holdings.
Insurance results climbedby $10.6 billion to $14.4 billion with thegrowth attributed to the consolidation of GHL’s insurance activities which contributed $7.1 billion to net insurance revenues.
Directorssaid in the company’s published financials thatthey are eyeing further regional expansion as a driver for further growth, applying technology and further consolidation to increase efficiencies.
The company’s stockvalue has climbed 36 per cent year to date to $204 per unit as at Friday, November 8. Board members declared an interim dividend of $0.90 per ordinary stock unit. The dividend is payable on December 6, 2019 to stockholders on record as at November 22, 2019.