NCB records 29% increase in net profit
The National Commercial Bank (NCB) reported that third quarter financial results to the end of June 2014 were below performance in the March quarter, but for the nine-month period the group has done better than the corresponding period last year when the national debt exchange affected results.
For the nine months period, NCB saw assets grow to $506.1 billion, an 18 per cent improvement over the corresponding period last year. During the review period, net profit increased by 29 per cent to $8.8 billion or $2 billion more than the same period last year.
Return on average equity was 15.6 per cent, compared to 13.3 per cent for the nine months ended June 2013. Return on average assets of 2.5 per cent was also an improvement over the 2.2 per cent recorded last year.
For the quarter to June 2014, however, NCB's profit declined by two per cent to $2.9 billion compared to the quarter ended March.
The bank said there was a five per cent improvement in net income, a 15 per cent increase in loan income and an upward movement of nine per cent in interest income from securities during the nine months ended June 2014.
NCB reported that net insurance income climbed by 101 per cent during the nine months while gains on foreign currency and investment activities grew by 138 per cent.
Interest expenses grew by 30 per cent, staff costs increased by seven per cent and other operating expenses went up by 31 per cent. Loan loss provisions were also cut by 31 per cent.
GROWTH IN CORE AREAS
The bank said it has been implementing initiatives in support of a strategy to become one of the top five financial institutions in the Caribbean and as a result it has been seeing growth in core areas.
Lines of business which improved during the nine-month period were retail and small and medium enterprises, treasury, correspondent banking, general insurance and pension fund management.
However, there were declines in operating profit in payment services, corporate banking and wealth management.
NCB said the bank and its subsidiaries remain adequately capitalised.
The company's board has declared an interim dividend of 35 cents per stock for payment on August 12.