The National Commercial Bank Financial Group (NCBFG) reported earnings of J$30. 7 billion with J$1.6 trillion in assets for the financial year ended September 30.
The Group’s earnings resulted in J$29.6 billion in net profit attributable to its shareholders, an increase of $J1.6 billion or six per cent over the corresponding period in 2018.
NCBFG’s performance was boosted by several notable events including divestment of its interest in Jamaica Money Markey Brokers Limited which saw a $3.3 billion improvement. Additionally, the Group saw gains of $2.3 billion from a revaluation of Guardian Holdings Limited (GHL) following its acquisition of majority interest in the company.
“Our results demonstrate the strength of our strategy and top line revenue in all operating segments.”– National Commercial Bank Financial Group
GHL provides life, health, property and casualty insurance, along with pensions and asset management services and had majority stake acquired by NCBFG in the third quarter.
Guardian’s consolidation added $580 billion to the Group’s asset base.
According to the Group’s report to shareholders, the move “forms the foundation for a more customer centric integrated financial services group with the ability to provide a broader range of services from a combined platform, while creating additional opportunities in the region.”
A third play by the company, the sale of Advantage General Insurance Company Limited (AGICL), also contributed to its record performance year, providing an additional $2.6 billion in gain.
The reported $1.6 trillion in total assets of the NCBFG represents a 65 per cent increase or $632 billion over the previous financial year.
Also of note is an increase of $24 billion, or five per cent, to $509 billion in customer deposits which NCBFG said reflects its customers’ confidence in the Group.
“Our results demonstrate the strength of our strategy and top line revenue in all operating segments,” the report said.
Operating expenses for the Group increased almost 50 per cent to $64.7 billion. The $21.3 billion increase came primarily from investments made to innovate product and service offerings, upgrade its technological capacity and core systems and advance digital offerings and improve skillsets and employee competencies, the report said.
“We are proud of our achievements and will focus on extracting value for the synergies and integration of our various business segments in the new financial year.”