National Commercial Bank Jamaica Limited said the group and its subsidiaries exchanged approximately J$118 billion of bonds under the National Debt Exchange (NDX).
The disclosure via a market filing on the Jamaica Stock Exchange comes just as new reports surface that eight financial institutions, including NCB, have been approached by the Government to agree to another round of debt swap to plug a J$10-billion shortfall.
Scotia Group Jamaica had previously disclosed that it swapped J$119.4 billion of bonds under NDX. The two banking groups are the largest holders of GOJ domestic bonds.
NCB said it expects its future earnings, including its 2013 returns, to be hit by the debt swap, which replaced securities with bonds of lower coupon rates and longer maturity profiles.
"Given that the coupons on the securities offered were higher than those on the securities received after the exchange, if the company continues to hold the securities received, the interest earned on them would continue to be lower until those securities mature," said NCB.
"There may, therefore, continue to be an impact on the interest earned in future years, though there are greater uncertainties around predicting the impact that will be experienced in the future years," the bank.
But NCB also noted that its current assessment does not take into account future mitigating measures and changes in the economic environment.
The J$860-billion NDX is projected to save Jamaica J$17 billion in annual debt-servicing costs over seven years.