As NCB Financial Group Limited (NCBFG) concludes a challenging yet progressive 2024 financial year, the company’s leadership has their sights set on transformative goals for 2025. Michael Lee-Chin, chairman of NCBFG, has reaffirmed his commitment to reshaping the financial conglomerate, focusing on operational efficiency, shareholder value, and an enhanced customer experience.
Refocusing on Priorities
Speaking at an investor briefing following the release of NCBFG’s unaudited fourth-quarter results, Lee-Chin highlighted the strides made since launching the group’s Efficiency, Governance, and Customer Experience (EGC) initiative last year. This initiative has already reduced the cost-to-income ratio from 86.3% to 71.6%, and margins have risen from 13.7% to 28%. While return on equity improved to 9.47%, Lee-Chin remains unsatisfied, calling for cost-to-income ratios below 50% and shareholder returns closer to 20%.
“We’ve come a long way in improving customer experience, but there’s still much work ahead. It’s a journey, not a destination,” Lee-Chin remarked, emphasizing a need for continued progress.
Modernizing Services
National Commercial Bank Jamaica Limited (NCBJ), a key subsidiary of NCBFG, is ramping up efforts to modernize its offerings. Significant advancements are being made in preparation for the Bank of Jamaica’s new automated banking machine (ABM) standards. Additionally, the upcoming launch of a virtual Visa debit card via the Lynk mobile app is expected to bolster NCBFG’s position in the digital payments landscape.
Sheree Martin, NCBJ’s executive vice-president of retail banking, underlined the group’s focus on small and medium-sized enterprises (SMEs). “We’ve seen a 120% increase in SME business. However, we’re not satisfied with the time it takes to process loans, which is critical for SMEs operating under tight timelines,” she explained.
Financial Performance
Despite advancements, the fourth quarter posed challenges. Net operating income dipped by 7% to $25.83 billion due to a rise in unpaid loans and a $400-million claims impact from Hurricane Beryl. Nonetheless, the group’s 2024 fiscal year saw consolidated net profit soar by 174%, from $8.5 billion to $23.25 billion, following a restatement of prior-year figures under the new IFRS 17 accounting standard.
Total assets grew by 5% to $2.32 trillion, while equity attributable to shareholders rose 22% to $174.45 billion, bolstered by share issuances and an additional public offering (APO) in May.
Shareholder Movements and Market Performance
Shareholder dynamics shifted significantly in 2024. Former CEO Patrick Hylton reduced his stake in the group, while AIC (Barbados) Limited, the majority shareholder, decreased its holdings to a 47.49% stake. On the other hand, the National Insurance Fund (NIF) became the third-largest shareholder after aggressive share acquisitions during the fiscal year.
However, NCBFG’s stock performance lagged, closing at $50.51 on the Jamaica Stock Exchange — a 24% decline year-to-date. Similarly, its price-to-earnings ratio stood at 7.98 times, indicating potential investor caution.
Outlook for 2025
As NCBFG prepares for the next financial year, Lee-Chin and the executive team are doubling down on efficiency and innovation. The group is set to finalize divestments in its Cayman and Bermuda operations, strengthen digital offerings, and enhance customer satisfaction through tailored services.
While challenges remain, the vision for 2025 is clear: a leaner, more efficient NCB Financial Group delivering value for shareholders and customers alike. “We’re not where we need to be, but we’re making strides in the right direction,” Lee-Chin concluded.
With an ambitious roadmap and a renewed focus on operational excellence, NCBFG aims to solidify its position as a leader in the Caribbean’s financial landscape.
