NCB Financial Group lagging behind 2022 performance
Published:Wednesday | August 9, 2023 | 8:18 PM
Third quarter profits are down at the NCB Financial Group, NCBFG.
For the quarter ended June 30, 2023, NCB Financial Group reported net profit of just under $7.4 billion.
This was $3.2 billion or 30 per cent less than the $10.59 billion for the similar quarter in 2022.
The June performance means that the NCB Group is lagging in year-to-date performance.
For the nine-month to June 2023 net profit at the NCB Group was just under $13.73 billion. This was over 47 per cent less than the $26 billion for the nine-month ended June 2022.
Net operating income from the banking & investments along with the insurance activities segment of the NCBFG stood at $35.6 billion for the quarter ended June 30, 2023, this was a shade below the $36.28 billion for the similar quarter in 2022.
NCBFG was faced with higher operating expenses for the third quarter. A small increase in staff costs, increased depreciation and amortisation and increased 'other operating expenses', drove operating expenses to $27.51 billion. This was two billion dollars more than the $25.51 for the similar period in 2022.
At the same time, NCBFG is pointing to a rebound for the quarter ended June 2023 compared to the previous quarter ended March 2023. NCBFG says the $7.4 billion was a $2.4 billion or 48 per cent improvement over the prior quarter ended March 2023. NCB says "The Group's diversified business model and strong financial position continues to facilitate strong performance in a challenging economic environment."
Regarding the banking segment of NCBFG, non-performing loans totalled $24.9 billion as of June 30, 2023, declining by $5.5 billion or 18 per cent from the prior year. The reduction in total non-performing loans led to an improvement in the non-performing loan ratio, decreasing to 4.0 per cent, from 5.3 per cent in the prior year.
The non-performing loan ratio industry standard is 6.0 per cent. This puts the loans portfolio of Jamaica's largest bank at 2.0 percentage points better than the standard.
- Neville Graham
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