Durrant Pate/Contributor

Jamaica’s biggest banking group, NCB Financial Group Limited (NCBFG) is seeing rising profitability, as net profit for the first quarter ended December 31, 2023 surged by 170 per cent to J$5.97 billion coming from J$2.21 billion the similar period in 2022.

Net profit attributable to shareholders totalled J$3.08 billion, relative to J$1.38 billion reported twelve months prior. Consequently, Earnings per share (EPS) for the quarter under review amounted to J$1.32 (2022: EPS: J$0.60). 

Notably, NCBFG’s stock price closed trading this week at a price of J$66.27 with a corresponding P/E ratio of 17.59x. Given the positive outturn, the bank’s management is recommending to the board of directors the payment of a dividend, which will be considered at this Friday’s (February 16) board meeting.

Operating profit for the first quarter closed on J$8.35 billion, representing a 115 per cent increase relative to J$3.88 billion reported in 2022 while pre-tax profit had a 106 per cent increase to reach J$8.40 billion (2022: J$4.07 billion). Taxation for the quarter came out at J$2.43 billion, a 30 per cent increase from the J$1.87 billion reported in 2022.

Modest increase in interest income

Interest income went up 15 per cent increase to J$21.66 billion compared to J$18.88 billion in the corresponding three months last year. At the same time, interest expense closed on J$10.06 billion (2022: J$7.54 billion), an increase of 33 per cent year-over-year. 

Consequently, net interest income increased by two per cent to J$11.60 billion compared to J$11.34 billion for the first quarter of 2024. Net fee and commission income increased by nine per cent to close at J$6.47 billion (2022: J$5.96 billion), while net result from banking and investment activities increased by four per cent from J$18.79 billion in 2022 to J$19.51 billion for the quarter under review.

The net result from banking and investment activities amounted to J$19.51 billion relative to J$18.79 billion a year prior. Insurance service result was J$6.20 billion compared to J$3.33 billion in 2022. 

Net insurance expenses amounted to J$6.12 billion a 30 per cent increase relative to the j$4.71 billion recorded in 2022. As a result, net revenues from insurance activities for the first quarter closed on J$15.01 billion, an 85 per cent increase relative to J$8.10 billion reported in 2022.

Balance sheet highlights

NCBFG’s assets closed on J$2.22 trillion (2022: J$2.08 trillion) with this movement being attributable to  “the growth in the asset base was mainly due to increased investment securities (+13 per cent) and net loans and advances (+5 per cent), which was mainly funded by repurchase agreements, deposits and other borrowed funds.”

Shareholder’s equity was J$159.66 billion (2022: J$132.55 billion), representing a book value per share of J$64.73 (2022: J$53.74).

Here are Our Today’s photos from Friday’s AGM: