In a recent investor briefing hosted by Mayberry Investments Limited (MIL), Michael Lee-Chin, the chairman of NCB Financial Group (NCBFG), addressed concerns surrounding his significant share sales in the company. Lee-Chin, who controls a majority stake in NCBFG through his AIC (Barbados) Limited, clarified that the sale of 43.7 million shares, valued at approximately $2 billion, was purely driven by personal financial needs and should not be interpreted as a sign of impending instability within the company.
The sale, which occurred over the past year, included 34.6 million shares in the previous financial year and a further 9 million shares sold in October 2024. The move followed similar sales by former CEO Patrick Hylton, who offloaded 13.7 million shares between July and September 2024, stirring further concerns among investors.
During the briefing, Gary Peart, the newly appointed CEO of Mayberry Group, questioned Lee-Chin about the implications of such sales, given his dominant position in the company. He asked why key insiders, such as Lee-Chin and Hylton, would sell their shares if they had confidence in NCBFG’s future, especially when the stock is considered undervalued at around $50, down from its 2023 price of $75.
Lee-Chin swiftly countered these concerns, asserting that his decision to sell shares had no bearing on his faith in the company’s future performance. “Everyone has their own capital allocation decisions to make,” he explained. “Just because I sold shares doesn’t mean I lack confidence in the business. These are personal financial decisions, not reflections of the company’s potential.”
Despite the selling activity, Lee-Chin emphasized that the fundamentals of NCBFG remain strong, citing a difference between perception and reality, inefficiencies in the company’s operations, and a lack of capital as key drivers for wealth creation. He highlighted ongoing efforts to reduce the company’s high operating costs, which currently consume over 71% of its income. Lee-Chin’s goal is to bring this ratio down to under 50% to improve profitability and drive future growth.
While acknowledging the stock’s recent decline, Lee-Chin remained optimistic about NCBFG’s recovery, positioning the company as poised for long-term success. He asserted, “When you have the right framework—perception vs. reality, operational inefficiencies, and capital constraints—it’s a magical combination for wealth creation.”
Analysts at Mayberry Investments, including senior vice-president Dan Theoc, expressed similar confidence, predicting that the stock could rise to around $96 within the next 12 to 15 months, driven by NCBFG’s strong fundamentals and cost-cutting initiatives.
Despite recent setbacks, Lee-Chin’s commitment to improving NCBFG’s performance remains unwavering. His strategic vision is to elevate the company to world-class standards, underscoring his long-term confidence in its recovery. Investors, he argued, should see current stock prices as an opportunity to buy into a leading financial institution with substantial growth potential.
