By Dennise Williams, Staff ReporterNET PROFITS for the year ending September 2003 at the National Commercial Bank (NCB) have leaped 658.12 per cent since 2001 from J$369 million to an impressive $2.8 billion according to its recently published annual report.
From 2002 to 2003, profits jumped 89.69 per cent from $1.5 billion to $2.8 billion, which is a very impressive performance. "This is the best profit that has ever been made in NCB's history," stated managing director, Aubyn Hill.
In the company's annual report, chairman Michael Lee-Chin stated that, "We are relentless in our focus on increasing the revenues of our businesses." And NCB has fully embraced the idea that you have to spend money to make money.
The group, has upgraded several floors of its head office at the Atrium to accommodate subsidiaries, NCB Capital Markets and NCB Insurance Company and refurbished six of their branches. According to the annual report and confirmed by Mr. Hill, staff members have fully participated in the improved earnings position.
The annual report reveals that the staff received $221 million or six per cent of net income before profit share. Additionally, $118 million was paid out as a performance bonus. Explains Mr. Hill, "The idea of compensating and rewarding staff is to have an understanding that they are here to serve the customer in whatever capacity. If you come into my office, I would gladly serve you a cup of tea. That doesn't take away from me being the managing director."
From a nationalist point of view, Mr. Lee-Chin states again in the annual report, "For NCB to prosper, Jamaica must be prosperous; it must be wealthy." To that end, NCB has done the following to contribute to the future wealth of the country. The bank has given:
$150 million towards education through the Jamaican Education Initiative $15 million to the Kingston City Centre Improvement Company
$3.5 million to the University Hospital of the West Indies
NCB has found a way to harmonise social charity, corporate responsibility and profitable innovation. Consider some of the new products that have come on stream from the retail division of the bank.
e-Financial Services that allow 24-hour on line banking enabling bill payment and overall account management.
Payroll Plus, a salary backed loan facility that Mr. Hill describes with a smile in his voice as, 'doing very well.'
The annual report reveals that the consumer loan portfolio has increased by a staggering 129 per cent.
Senvia Money Services, their remittance arm based in the Caribbean had US$1 million sent to Jamaica from Cayman in 2003. The corporate division of NCB hasn't been doing too bad either. The annual report makes mention of US$90.5 million of noteworthy transactions.
NCB's hard work has been fully demonstrated in its financial statements.
Total operating income has increased by 66.3 per cent from $6.6 billion in 2002 to $11 billion in 2003.
Net loans has increased by 72.75 percent from $15,282,721 in 2002 to $26,4000,147 in 2003.
Customer deposits went up by 9.98 per cent or $6.3 billion from $66.4 billion in 2002 to $49.7 billion in 2003.
Commenting on this growth, Mr. Hill said, "Serious work has been done here, although I am not happy with the levels of deposits at NCB. Happiness is elusive and I never want to be happy."
Non performing loans dropped substantially by 40.50 per cent (this is one area that bankers like to see decreases occur) from 5.26 per cent to 8.84 per cent.
And while Mr. Hill is coy in his predictions for 2004, "I rather leave the future where it is," he gives Wednesday Business an outline of the banks' operating philosophy.
"We want to see the deposit base deepen outside of the fixed deposit arena. We will add services such as loans, credit cards, fee waivers to customers in exchange for our savings products which are less costly in terms of interest."
Mr. Hill also hinted at future loan products aimed at the productive sector of the economy.
"One of the many areas that we are looking at is the offering of lower cost loans to the members of the manufacturing and agricultural sectors. With guarantees from the USAID and low cost funds from regional banks, we will find ways to assist those two sectors to either grow existing or establish new businesses."
For the corporate side of NCB, Mr. Hill informed Wednesday Business that, "We will be looking at the tourism, mining and oil sectors for growth."
