NCB Financial Group Overview and Business Operations

NCB Financial Group is a leading financial institution in Jamaica, with a rich history dating back to 1977. The group was established by the government to provide financial services to the Jamaican people.

NCB Financial Group operates through a network of branches and ATMs across the island, making it easily accessible to customers. Its headquarters is located in Kingston, Jamaica.

The group's business operations are diverse, encompassing banking, insurance, and other financial services. This allows it to cater to a wide range of customers and provide a one-stop-shop for their financial needs.

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NCB Financial Group is a major player in the Caribbean financial market, offering a range of banking products and services across several countries, including Jamaica, Trinidad and Tobago, Dutch Antilles, and Bermuda.

Their services are not limited to these regions, as they also operate internationally.

The company's stock, NCBFG, has a Price-To-Earnings ratio of 9x, which is significantly lower than the Jamaican market average of 17.8x.

This suggests that the stock may be undervalued, making it an attractive option for investors looking for a potential bargain.

Their international presence and diverse range of services make them a significant force in the global financial landscape.

NCB Financial Group's financial performance is a mixed bag. The group's operating income of $59.8 billion represented a nine percent increase over the prior year, primarily driven by improved gains from investment activities.

Despite this, operating expenses increased by 13 percent, offsetting the improved revenue. Banking and investment activities accounted for $46.6 billion of the group's revenue, a 17 percent increase from the prior year.

Here's a breakdown of the group's sales by activity:

The group's credit impairment provisions also benefited from an improved economic outlook and prudent delinquency management strategies, resulting in a 21 percent reduction in expected credit losses.

The price history of NCB Financial Group is a story of ups and downs. The current share price is JA$49.92.

In the past year, the company's share price has taken a significant hit, decreasing by 28.43%. Over the past five years, the decline has been even more pronounced, with a staggering 73.28% drop.

Here's a breakdown of the company's share price changes over different time periods:

However, it's worth noting that the company's share price has still managed to increase by 375.43% since its IPO.

NCB Financial Group has shown commendable performance in its core business activities, despite reduced profitability. The group's operating income of $59.8 billion represented a nine percent increase over the prior year.

This improvement in revenue was driven by gains from investment activities, which rebounded to $8.4 billion for the current six-month period. This was due to more favorable market conditions and improving securities prices.

The group's banking and investment activities also saw significant growth, with a 17 percent increase in revenue compared to the prior year. This was primarily driven by increased gains from investment activities and improved credit impairment provisions.

Here's a breakdown of the group's banking and investment activities revenue:

These results demonstrate the group's ability to adapt to changing market conditions and drive growth in its core business activities.

NCB Financial Group's business operations are quite diverse, with various activities generating revenue. Insurance activities, specifically life and health insurance, are a significant contributor to the group's sales.

The group's insurance activities have seen a fluctuation in sales over the years, with a high of $56.87 billion in 2022 and a low of $34.68 billion in 2024.

NCB Financial Group's banking and investment activities are also substantial, with consumer & SME banking sales reaching $33.27 billion in 2024.

The group's sales from banking and investment activities have been steadily increasing, with a notable growth in treasury & correspondent banking, reaching $16.2 billion in 2024.

Here's a breakdown of the group's sales from various banking and investment activities:

A company's structure is the foundation of its operations. It determines how tasks are divided, who is responsible for what, and how decisions are made.

The company has a flat organizational structure, with only three levels of management. This allows for quick decision-making and efficient communication.

Each department has a clear set of goals and objectives, which are aligned with the company's overall mission. This ensures everyone is working towards the same outcome.

The marketing team is responsible for promoting the company's products and services, while the sales team focuses on generating revenue.

For another approach, see: Structure Financial

Banks are a crucial part of the financial sector, and their operations can be complex. NCB Financial Group Limited, for instance, has reported its earnings results for the first quarter ended December 31, 2024.

NCB Financial Group Limited has a diverse range of banking and investment activities, including consumer & SME banking, corporate & commercial banking, and treasury & correspondent banking. The company's banking and investment activities generated $22.7 billion in revenue for the fiscal period of 2020.

The company's revenue from banking and investment activities has been steadily increasing over the years, reaching $33.27 billion in 2024. This represents a significant growth from $22.7 billion in 2020.

Here's a breakdown of NCB Financial Group Limited's banking and investment activities revenue for the fiscal period of 2020-2024:

The company's net result from banking and investment activities has also been increasing, reaching $47.1 billion in 2024. This represents a significant growth from the previous year.

Loans and advances play a crucial role in the financial health of a company. The Group's loans and advances, net of credit impairment losses totalled $477.1 billion.

This is an increase of $46.2 billion or 11 per cent over the prior year. Non-performing loans, which are a concern for any financial institution, amounted to $30.5 billion as at March 31, 2021.

This represents 6.2 per cent of gross loans, up from 5.6 per cent in the prior year. The increase in non-performing loans is a significant concern for the company.

Despite this, the company's deposit, which is the largest source of funding, totalled $603.3 billion. This is an increase of $83.8 billion or 16 per cent over the prior year.

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As we dive into the geographical sales breakdown of NCB Financial Group Limited, it's clear that Jamaica is the leading market, with sales reaching a staggering $168B in 2024.

The company's sales in Jamaica have been steadily increasing over the years, with a growth rate of over 70% from 2020 to 2024.

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In contrast, Trinidad & Tobago has seen a decline in sales, dropping from $85.49B in 2023 to $56.82B in 2024.

Here's a breakdown of the company's sales by region:

The company's sales in the Dutch Antilles have also seen a significant decline, dropping from $50.58B in 2023 to $33.17B in 2024.

On the other hand, Bermuda has seen a steady increase in sales, rising from $14.9B in 2023 to $15.71B in 2024.

NCB Financial Group made significant improvements in its business operations, particularly in its core activities. The group's banking, investment, and insurance activities showed commendable performance, despite reduced profitability.

Operating income increased by nine percent to $59.8 billion, a $5.0 billion improvement over the prior year. This growth was driven by improved gains from investment activities, which rebounded to $8.4 billion, thanks to more favorable market conditions and improving securities prices.

Banking and investment activities accounted for $46.6 billion, a 17 percent increase from the prior year. This was primarily due to improved gains from investment activities and a reduction in credit impairment provisions.

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Credit impairment provisions decreased by $684 million, or 21 percent, due to an improved economic outlook and prudent delinquency management strategies. This reduction reflects the adequacy of the banking group's earlier provisions.

However, the group's fee income was significantly impacted by reduced retail and corporate activity, particularly in card issuing and acquiring. The decision to waive fees at electronic channels also affected this revenue source.

Here's a breakdown of the group's sales by activity for the fiscal period of September:

The group's performance was mixed, with some areas showing significant improvement, while others were impacted by external factors. Despite this, NCB Financial Group remains committed to delivering value to its stakeholders.

NCB Financial Group has a concerning earnings trend, with a decline of 17.1% per year over the past 5 years.

This significant drop in earnings raises questions about the company's financial stability and potential for future growth.

Earnings have declined by 17.1% per year over past 5 years, which is a clear warning sign for investors.

The company's dividend track record is also unstable, making it harder to rely on regular income from investments in NCB Financial Group.

Investors should carefully weigh the risks and potential rewards before making a decision about investing in NCB Financial Group.

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NCB Financial Group has a significant presence in various countries, including Jamaica, Trinidad and Tobago, Dutch Antilles, Bermuda, and internationally.

Their stock price is relatively low, with a Price-To-Earnings ratio of 9x, which is below the Jamaican market average of 17.8x.

NCB Financial Group Limited holds a substantial amount of shares in other companies, including NCB FINANCIAL GROUP LIMITED, SCOTIA GROUP JAMAICA LIMITED, JAMAICA BROILERS GROUP LIMITED, and PAN JAMAICA GROUP.

Here's a breakdown of their holdings:

When evaluating the performance of a company, one crucial aspect to consider is shareholder returns. NCBFG underperformed the JM Banks industry which returned -1.2% over the past year.

NCBFG's seven-day returns were 0.8%, a stark contrast to JM Market's -1.1% returns during the same period.

The one-year returns for NCBFG paint a concerning picture, with a -28.4% decline, while JM Market saw a 0.7% increase.

Here's a quick summary of the shareholder returns for NCBFG and its industry peers:

Let's take a look at the holdings of some companies. NCB Financial Group Limited has a significant stake in Scotia Group Jamaica Limited, holding 24,291,176 shares, which represents 0.78% of the company.

NCB Financial Group Limited also has a substantial stake in Jamaica Broilers Group Limited, holding 28,987,667 shares, which is equivalent to 2.42% of the company.

In terms of valuation, NCB Financial Group Limited's holding in Scotia Group Jamaica Limited is worth $9,245,464, while its holding in Jamaica Broilers Group Limited is worth $6,987,767.

Here's a breakdown of NCB Financial Group Limited's holdings:

NCBFG Stock Overview provides various banking products and services in Jamaica, Trinidad and Tobago, Dutch Antilles, Bermuda, and internationally.

The company's Price-To-Earnings ratio is a notable 9x, which is significantly lower than the JM market average of 17.8x.

This lower P/E ratio could be an attractive factor for investors looking for undervalued stocks, especially considering the company's international presence.

NCB Financial Group is making significant strides in restoring its management with the best professionals in the industry. Michael Lee Chin, the Majority shareholder and Chairman of NCB Financial Group, is leading this effort.

Attracting world-class professionals is a key part of this restoration process, as declared by Lee Chin at the recent AGM. This move is expected to have a positive impact on the Group's future.

The Group is fortunate to have Lee Chin at the helm, guiding the process of bringing in top talent to lead the company forward.

The Leadership team at NCB Financial Group Limited is made up of experienced professionals who have been in their roles for various lengths of time.

Robert Almeida has been the CEO since the data was last updated, bringing over 62 years of experience to the role.

Malcolm Sadler has been the Director of Finance/CFO for an unknown amount of time, but his experience is undoubtedly valuable to the company.

The Compliance Officer, Misheca Seymour-Senior, has also been in her role for an unknown amount of time, ensuring that the company operates within the law.

Richard Look Kin has been the Corporate Officer/Principal since December 3rd, 2024, a relatively new addition to the team.

Here is a brief overview of the Leadership team:

The board members of NCB Financial Group Limited are responsible for overseeing the company's strategic direction and ensuring its continued success. One of the longest-serving board members is Michael Lee-Chin, who has been a Chairman since 2001.

The board is composed of experienced professionals with diverse backgrounds, including Robert Almeida, Sanya Melina Goffe, Thalia G. Lyn, and Gary Wayne Brown. Each member brings their unique perspective to the table.

Here are the board members with their titles and ages:

NCB is being restored with world class professionals – Lee Chin. This is according to Michael Lee Chin, Majority shareholder and Chairman of NCB Financial Group.

Michael Lee Chin declared at today's AGM that the Group is attracting the best in class. This is a significant development for the company's future.

The Group is attracting top talent, which bodes well for its future. This is a testament to the company's ability to attract and retain world-class professionals.