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NCB Financial Group’s unaudited financial results for Q2, 2026, painted a sombre picture as the realities of the times take hold.

The Group reported a consolidated net profit of $10. 3 billion for the six months ended March 31, 2026, a 53 per cent or a $ 11.9 billion fall off from the $27. 2 billion reported in the prior year.

Net profit attributable to stockholders came in at $7.2 billion, 46 per cent or $6.1 billion lower than the $13. 3 billion recorded for the same period last year.

The major drop off in profit is due mainly to the one-off gain recorded last year from the sale of  NCB’s Netherlands insurance brokerage business which weighed in with J$15. 1 billion to consolidated net profit and $9.4 billion to consolidated net profit attributable to NCB stockholders.

Unfortunately, operating income declined by 18 per cent to $63.4 billion.  NCB attributes this to unrealised fair value losses incurred in its equities portfolio brought on by mark-to-market losses.

The Michael Lee Chin-led financial institution was able to keep a tighter lid on operating expenses, which for the period under review came to $49 billion, a 6 per cent or $3 billion decrease. Here, the Group points to its cost management and operational efficiency prowess. 

The jewel in NCB’s crown has always been its customer deposits, and this business line was again very good to the Group, increasing by 5 per cent to $844 billion. Deposits continue to be the leading source of funding, a strong indicator of balance sheet growth. 

Total assets increased to $2.43 trillion, up 3 per cent over the prior year. Consolidated total equity of $260.2 billion rose by 13 per cent or $30 billion, while equity attributable to stockholders of the company increased by 12 per cent to $204 billion. Earnings Per Share (EPS) stood at $2.96 while Return On Equity  (ROE) for the Q2 period was 7.15 per cent.

Commenting on its Q2 showing, NCB  said: “Our second quarter results continue to reflect a challenging environment which has impacted our investment activities as we again recorded unrealised fair value losses primarily in our equity investments.

“Despite these headwinds, our core business remains solid, supported by the growth in our balance sheet and disciplined cost control. We are focused on navigating the current market dynamics with prudence while continuing to execute our long-term strategy to deliver sustainable value to our shareholders.”

Of concern must be the decline in NCB’s key performance metrics. Annualised Return on Equity decreased to 7.15 from 15.06 per cent, while annualised Return on Assets fell to 0.85 per cent from 1.90 in the previous year. The cost-to-income ratio for the six-month period ended March 2026 was 72.71 per cent compared with 63. 18 per cent in the prior year.

Net revenues from banking and investment activities came to $51.2 billion a fall of a huge $27.7 billion (35%) compared to the same period last year. Net interest income rose by $2.2 billion.

 The Insurance service result improved, moving to $15.1 billion, up 58 per cent ($5.5 billion) while net insurance finance expenses declined by 75 per cent or $8.4 billion.

Speaking at an investor briefing held earlier today, NCBFG Group CFO Malcolm Sadler informed, “Collectively, these factors resulted in operating income of $51.2 billion, a decline from the $78.9 billion recorded in the prior year..  We maintained disciplined cost control, which partially offset the adverse revenue movements.”

Sadler points to net inflows from reinsurance, while the general insurance segment recognised further gross claims of approximately US$129 million related to Hurricane Melissa, which was fully reinsured.

 He continued: “The growth in insurance revenue was primarily fuelled by the products within the Life and Health segments. Notably, net insurance finance expenses declined by $8.4 billion or 75 per cent, mainly with the Life, Health and Pension segment.  This reduction was largely due to the inverse movements from net unrealised fair value losses recorded in the underlying investment portfolios, which caused a corresponding decrease in the policyholders’ liabilities  in our unit-linked product.”

“Our diversified business model continues to validate our strategy. While only three segments in our insurance business recorded growth over the prior year, the underlying performance across all segments was strong.

Sadler is stressing that NCB took a hit in this division because of volatility in regional and international stock markets. 

In the banking business, the treasury and corresponding banking segment continues to be the largest contributor despite a 4 per cent reduction in operating profits. Wealth, Asset Management and Investment Banking reported operating profit, which was 95 per cent higher than the prior year. Commercial and corporate banking recorded a marginal decline in operating profit of approximately 1 per cent despite reduced interest income due to lower net loan volumes. Net interest income actually improved due to effective management of interest margins however, impairment losses are higher so far this year. 

“We have seen a rebound in the second quarter with improved business activity, together with the positive impact of initiatives implemented to improve asset quality.  When we take a look at the balance sheet, our financial position as of March 2026, continues to reflect the strength and stability of the Group”, declared NCB’s CFO.

Addressing shareholders, analysts, and the media, NCB Group CEO Robert Almeida said: “ When we met at the AGM earlier this year, I said 2026 would be a transition year for the Group, a year where the heavy lifting of stabilisation and restructuring would continue.  This would give way to a more predictable, more disciplined and more sustainable operating rhythm. That transition is clearly underway. It may feel a little less eventful than some of the periods we have come through, and that is by design. Stability when it is earned is a signal of strength, and it creates a platform for consistency and long-term value creation. 

“The business is performing broadly in line with what we said it would. At first glance, the comparative numbers would suggest otherwise, but context matters. The Asset Tax, which has cost the Group approximately US$190 million over time, was fully absorbed in the first quarter of this financial year.  The Trinidad Asset Tax commenced in this quarter. So what we see in this quarter is not event-driven but largely market-driven, particularly in investment portfolios where global equity volatility and geopolitical uncertainty continue to affect valuations. Our core business is holding steady and is stronger than it was  not very long ago.”