National Commercial Bank Jamaica Limited aims to raise US$175 million by way of the securitisation of its diversified payment rights, its parent company said.
The NCB Financial Group Limited says the transaction will be rated by Fitch Ratings and placed in the International Private Placement Market by Westwood Capital LLC, as arranger.
The transaction is expected to close by September 30, 2020.
The NCB Group includes NCBJ, NCB Capital Markets Limited and its subsidiaries in Barbados and Cayman as well as NCB Global Finance Limited in Trinidad and Tobago.
Group profit fell 29 per cent in the third quarter ended June, 2020
NCB Financial Group Limited (NCBFG) and its subsidiaries (the Group) for the nine months ended June 30, 2020 reported net profit of $20.3 billion.
Net profit attributable to stockholders of the parent was $14.8 billion, a 29 per cent or $6.0 billion decline from the prior year. However directors said this was due to last year’s one off gains.
In the third quarter, directors say the economic downturn stemming from COVID-19 continued to influence the performance of the Group
The impact primarily resulted in reduced securities trading activity coupled with the depreciation of the Jamaican currency resulting in reduced gains on foreign currency and investment activities.
It has also caused increased credit impairment provisions and the waiver of certain digital and self-service channel user fees.
Directors state that the company’s on advancing its digital capabilities should enable the Group to adjust operations to mitigate any disruption in business.
Operating profit for the nine months increased by 28 per cent or $4.9 billion over the prior year.
The net result from banking and investment activities, $58.3 billion, represented growth of 12 per cent or $6.2 billion.
There were reduction in fees experienced by National Commercial Bank Jamaica Limited, which was mainly due to its drive to have customers use digital channels along with the temporary waiver of some transaction fees to assist our customers during the pandemic.
The reduction in gain on foreign currency and investment activities of 72 per cent or $6.3 billion partially offset those improvements in revenues.
Credit impairment losses increasing by $2.0 billion or 55 per cent due to expected credit losses from the impact of COVID-19.
Fitch in its release on its expected ratings said that NCB credit card receivables had fallen by 16 per cent in the first seven months of 2020.