Profits up

[RichD]

NCB’s profits up to $13 billion
Sunday, November 06, 2011




NATIONAL Commercial Bank (NCB) on Friday reported an 18 per cent increase in net profit to $13 billion over the year ending September 30, 2011, buoyed by a $1-billion gain on investments in Jamaica Money Market Brokers Limited (JMMB) and Kingston Properties Limited.
Group revenue climbed by 18 per cent to $34.7 billion over the period under review compared to the year ending September 30, 2010. This was boosted by gains on foreign currency and investment activities more than doubling to $4 billion, premium income almost six-folding to $2.9 billion, net fee and commission income increasing by eight per cent and net interest income increasing marginally to $21.1 billion.
“This performance emphasised our continuous drive for productivity coupled with cost-efficiency interventions which were also implemented during the course of the year. These include a keen understanding and responsiveness to our operating environment, negotiating more value for money where possible and realignment of roles,” said NCB Group managing director Patrick Hylton.
During the year, the Group acquired 29.30 per cent of the shares of JMMB. The firm reported that this acquisition, as well as its 25.17 per cent share of Kingston Properties Limited have been accounted for as associated companies and gains of $1 billion has been included in the net profit.
The Consumer & SME, Corporate Banking, and Treasury & Correspondent Banking segments which comprise the commercial banking activities, reported combined operating results of $9.7 billion for the year under review, representing an increase of $771 million or 8.65 per cent over the prior year. The Consumer & SME segment reported increased operating profits of $3.2 billion, up by 22.37 per cent or $589 million over the year ended September 30, 2010. NCB said the improved results were driven mainly by growth in the loan portfolio and a change in the mix of funding.
The firm’s Treasury & Correspondent Banking segment achieved an increase in operating profits of $1 billion or 30.07 per cent when compared to the previous financial year, which was mainly due to an increase in gains on foreign currency and investment activities. Impairment losses on securities of $264 million are included in this segment.
Loans and advances, which totalled $91.7 billion (net of provision for credit losses) as at September 30, 2011, grew by $5.7 billion or 6.67 per cent compared to the loan portfolio as at September 30, 2010. Nonperforming loans totalled $6.7 billion as at September 30, 2011 ($3 billion as at September 30, 2010) and represented 7.16 per cent of the gross loans compared to 3.45 per cent as at September 30, 2010.
NCB Capital Markets, the firm’s wealth management arm, contributed operating profits of $4.7 billion for the year ended September 30, 2011, representing an increase of $1.1 billion or 31.48 per cent over the prior September 2010 period. The growth over the prior year’s results is due mainly to an increase in gains from investment activities.
The Insurance and Pension Fund Management segment reported operating profits of $2.4 billion for the year ended September 30, 2011; this result reflects growth of $406 million or 20.44 per cent over the prior year’s results, due mainly to increased income from annuity premiums.
“Our outstanding results underscore our commitment to responding to the financial needs of our customers and building the capability of our team to meet those needs. I use this opportunity to thank all members of staff and our board for their contribution to our continued success,” stated Hylton.


Read more: http://www.jamaicaobserver.com/busin...#ixzz1d7h8eVMg

[RichD]

Re: Profits up

JMMB six-month profits jump 200 per cent
BY AL EDWARDS
Friday, November 04, 2011




JAMAICA Money Market Brokers (JMMB), under the stewardship of Keith Duncan, put in a stellar performance for the six-month period ended September 30, 2011 which saw net profits rise by 200.2 per cent year on year to J$1.37 billion.
That sum represents more than what was recorded for the entire financial year in 2010. Of particular note is the rise of Net Interest Income which brought in a whopping J$1.63 billion spelling a 53.8 per cent increase on the previous year's figure. This is all the more remarkable given the impact the Jamaica Debt Exchange (JDX) has had on this revenue line of most financial institutions in Jamaica.


The efficiency ratio (administrative costs as a percentage of operating expenses) improved to 44.9 per cent from 66.4 per cent when compared to the corresponding period. A release issued by the group read: "We continue to tightly manage operating expenses, which increased by 12.6 per cent over the period. The overall impact of increased revenue and increased efficiencies from operations resulted in J$1.65 billion or 176.9 per cent increase in operating profit."
JMMB has embarked on a mission to launch integrated financial services and this strategy is paying off. It recently launched its JMMB Car Solution which it proclaims is the only product of its kind on the market, offering an investment, credit and insurance element, as well as discounts at select car dealer partners.
This is a novel solution as JMMB's Marketing Communications Manager Lauri-Ann Ainsworth explained: "JMMB Car Solutions is not simply a car loan facility. It is primarily aimed at first time car buyers and offers up to 90 per cent financing on cars up to five years old. With JMMB Car Solutions a deposit is not needed but rather one starts to save with us in order to address those necessary car buying expenses. We offer affordable rates plus a J$30,000 cash back facility. One can also get a 22 per cent discount on insurance through our brokerage."
JMMB Insurance Brokers with a client base of over 160,000 also launched its Smart Choice Home Insurance promotion. This product gives clients an opportunity to enjoy significant savings of up to 19 per cent on their home insurance and to get J$1 million in free contents coverage.
The group has been bold in attaining critical mass by acquisitions, mergers and forging close ties with other financial institutions particularly in the region. Earlier this year it audaciously made a move to acquire Capital & Credit and is awaiting approval from the Bank of Jamaica.
This deal is worth around J$4.5 billion. Back in 1999, it acquired a 45 per cent interest in Caribbean Money Market Brokers (CMMB) but sold its interest nine years later to Lawrence Duprey's CL Financial for J$2.3 billion. JMMB's Group CEO Keith Duncan has said that over the next few years JMMB plans to re-enter the securities business in Trinidad & Tobago.
JMMB also has an 80 per cent interest in a securities dealership in the Dominican Republic called JMMB BDI America. This entity is reporting a profit of US$700,000 (J$60 million). In Trinidad it has a 50 per cent stake together with Mittal in Intercommercial Bank Limited (IBL).
All in all JMMB has 170,000 clients and assets under management on-balance sheet of J$160 million. Off-balance sheet that figure is closer to J$180 billion. For the period under review JMMB's capital to risk weighted assets stood at 30 per cent, whereas the Financial Services Commission (FSC) benchmark stipulates a minimum of 14 per cent. Its capital to total assets ratio came in at 11.5 per cent in 2010 whereas the FSC benchmark is six per cent.
Speaking with Caribbean Business Report last night, JMMB's Chief Financial Officer Patrick Ellis said: "We have had a remarkable six-month period. Our strategy is to focus on growing core revenue lines and to maintain operational efficiencies. We did extremely well with our net interest income and grew our operational revenues. Both our pension and insurance businesses are now getting traction.
Our operational expenses were up 7.9 per cent for the quarter but we had a notable one-off expense and when you take that out of the mix we would have been well in line with the current inflation rate number.
The decision to offer a complete integrated suite of products and services has paid off. We have completed our application to acquire Capital & Credit and have submitted it to the Bank of Jamaica. It is now conducting its internal investigations and checks which should run for 60 days."


Read more: http://www.jamaicaobserver.com/business/...2#ixzz1d7hUzsYX

[RichD]

Re: Profits up

The editors of the Jamaican newspapers do a poor job...they routinely mistake billions for millions

e.g. &quot;assets under management on-balance sheet of J$160<span style="font-weight: bold"> million</span>. Off-balance sheet that figure is closer to J$180 <span style="font-weight: bold">billion</span>.&quot;