As NCB Financial Group (NCBFG) enters the 2025 financial year, executives, including chairman Michael Lee-Chin, have highlighted their commitment to addressing ongoing challenges despite positive strides made over the last 12 months. At an investor briefing following the release of the group’s unaudited fourth-quarter report and full-year results for FY 2024, Lee-Chin and other executives expressed dissatisfaction with certain aspects of the business that still require improvement, particularly in efficiency and customer service.
Lee-Chin, who has taken a more hands-on approach in recent months, reaffirmed his focus on the EGC strategy—focusing on Efficiency, Governance, and Customer Experience. His objective is to further enhance shareholder returns while significantly improving the way customers engage with the bank. He also emphasized a stronger push towards transparency in internal processes.
Despite a notable reduction in the group’s cost-to-income ratio, from 86.3% to 71.6%, and a surge in profit margins from 13.7% to 28%, Lee-Chin remains unsatisfied with the pace of these improvements. His goal is to drive the cost-to-income ratio even lower while aiming for a target return on equity closer to 20%. “We’ve made substantial progress in certain areas, but we are not where we need to be, particularly when it comes to customer service,” Lee-Chin commented. “The direction is positive, but the road ahead is still long.”
In line with improving customer satisfaction, National Commercial Bank Jamaica Limited (NCBJ), a key subsidiary of NCBFG, is intensifying efforts to enhance Automated Banking Machine (ABM) availability in preparation for the Bank of Jamaica’s new ABM standards. Additionally, NCBJ is nearing the launch of its virtual Visa debit card via the Lynk mobile app, aimed at providing customers with seamless contactless payment options.
Sheree Martin, Executive Vice President of NCBJ’s Retail Banking Division, also pointed to notable progress within the SME segment, where the bank has seen a 120% growth in business for the year. However, Martin acknowledged that while demand for financing remains high, improvements are still needed in streamlining loan decision processes for SMEs, ensuring timely responses for often urgent financing needs.
The bank also reported a strong uptick in new consumer accounts, with an 89% increase in the year. Meanwhile, the group’s revenue from its business division surged by 16% to $44.34 billion, with an operating profit of $1.81 billion, compared to an operating loss of $720 million the previous year.
However, NCBFG’s fourth-quarter financial performance showed some strain, with a 7% dip in net operating income, largely due to a significant rise in unpaid loans within its corporate and commercial banking sector, reaching $8.7 billion—up from $4.2 billion in the previous year. The bank also faced financial setbacks from Hurricane Beryl, with claims amounting to $400 million, which negatively impacted operating income during the July-August period.
On the corporate side, efforts to finalize the sale of NCB (Cayman) Limited and parts of Clarien Group Limited are still pending regulatory approval. The bank received a US$1.88 million dividend from Clarien Group during the fourth quarter, following a US$3.75 million dividend payout.
For FY 2024, NCBFG’s net operating income rose by 4%, reaching $120.01 billion—up from a restated $115.37 billion in 2023 under new accounting standards (IFRS 17). The restatement shows a reduction from previous figures under IFRS 4, reflecting the impact of the new accounting treatment on insurance revenue. The group’s consolidated net profit saw an impressive 174% increase, reaching $23.25 billion, up from $8.5 billion the previous year, with $15.02 billion attributable to shareholders.
In terms of its financial position, NCBFG’s total assets grew by 5%, reaching $2.32 trillion, with investment securities, loans, and cash balances making up significant portions. Meanwhile, liabilities rose by 4%, with customer deposits reaching $783.97 billion.
Despite a rocky year for NCBFG’s stock performance—down 24% year-to-date—Lee-Chin has signaled confidence in the company’s long-term prospects. The bank recently declared a dividend of $0.50 per share, marking four consecutive quarters of dividend payouts after a two-and-a-half-year hiatus.
As NCBFG moves forward into 2025, the group is committed to continuing its efforts to improve efficiency, governance, and customer experience, aiming for a future of stronger financial returns and enhanced stakeholder satisfaction.
