NCB is undergoing a transition and the true reasons for all this recent manoeuvring have yet to be revealed.

Last week majority owner and Chairman of NCB Group  Michael Lee Chin sold off 22.7 million ordinary shares. 

At J$68 a share, that transaction netted him$1.54 billion

The gobbling up of NCB shares has continued apace, and today a  further 16 million shares were sold.

Since Michael Lee Chin announced that he is taking a hiatus as Chairman of NCB, there sure has been a lot of share acquisition activity in an anaemic Jamaican equities market.

For the period June 15-19, 2023 14,270 shares were sold. Then for the period June 19-21, 2023, 1,630 shares were sold until that 22.7 million chunk caught the eye of everybody.

Now comes a further 16 million shares.

That’s around 50 million shares sold in less than two weeks, all taking place since his announcement that he was going to focus on personal matters.

Who is snapping up these shares? 

Word around the campfire is those boys from Cornerstone/Barita who it is believed will continue to get their hands on as many shares as possible that becomes available.

What is the end game here?

Do investors view NCB as undervalued at its current price?  It is trading below its book value.

In 2019, NCB’s share price stood at a majestic $230. Today it has sunk quicker than the Titan looking for the Titanic to $67.

This poses an attractive proposition for investors who will look to buy, hold and prosper, anticipating the return of better days.

There are plenty of disgruntled NCB shareholders voicing anger and disappointment at having to suck salt with no dividend payments for more than three years now.

This is all the more galling given that NCB paid out $8.3 billion in dividends in 2019.

Lee Chin and NCB have taken a cautious approach choosing to preserve capital by holding onto retained earnings. Lee Chin has promised to again make dividend payments soon.

The rationale behind NCB’s approach may be rising interest rates, fair value losses, Basel III and new IFRS stipulations that will impact the bottom line.

With this constant drip of information, falling profits, Lee Chin on hiatus, the selling of shares, and a focus on energy and oncology, it is doubtful whether Lee Chin is looking to parachute out of the bank he acquired 20 years ago.

This may be a recalibration exercise. Why would he walk away from a company that has a market cap of $155.37 billion with revenues of $68 million and is one the leading financial institutions in the Caribbean, for years proving to be the jewel in his crown?

Our Today understands that Lee Chin has been brokering deals with the Arabs in the lands of Dubai, UAE, and Qatar. He is expected to be in Jamaica next week where a major announcement is expected to be made.