From left, Michael Lee Chin, NCB's chairman, and Aubyn Hill, NCB's managing director.
Al Edwards, Financial Editor
NCB'S REHABILITATION continues apace with the Group reporting net profits for the nine-month period ended June 30, 2004 of $2.87 billion compared to $1.56 billion for the corresponding period in the previous year. This represents an increase of $1.31 billion or 85 per cent.
This positive net profit performance was mainly attributable to the continued growth in NCB's core revenues, resulting in a net interest income of $7.47 billion, an increase of $4.25 billion or 133 per cent when compared to the $3.22 billion for the same period in the previous year.
TOTAL REVENUES
Total revenues for the Group increased by $4.9 billion or 34 per cent compared to the corresponding nine months of the previous year. The increase in revenues is attributable to the following:
Growth in income from loans of $1.7 billion or 84 per cent
Growth in income from securities of $4.7 billion or 57 per cent
Operating income (net interest income and non interest income) of $10 billion exceeded the amount for the corresponding period of the previous year of $7.2 billion by $2.8 billion or 39 per cent.
One of the major revenue drivers for the Group is loans and advances which increased by $6.7 billion or 25 per cent during the nine months ended June 30, 2004. The quality of the loan portfolio has improved despite the significant increase in loans and advances.
INCREASE IN ASSETS
The Group's total assets as at the end of the period under review was $167.7 billion, $22 billion or 15 per cent in excess of the balance as at September 30,2003. This increase in assets is attributable to growth in the following earning assets:
Loans and advances $6.7 billion or 25 per cent
Reverse repurchase agreements $14.2 billion or 243 per cent
The asset growth was funded mainly by increases in customers' deposits and repurchase agreements
For the period under review total stockholders equity was $15.9 billion, an increase of $4.3 billion or 38 per cent when compared to June 2003.
At the Board of Directors meeting held last Thursday an interim dividend of nine cents per share (total cost $222,008,654) was approved for the quarter. The dividend is payable on 17 August 2004 for shareholders on record as at 9 August 2004.
Earnings per stock unit stood at $1.16 coming from $0.63 for the corresponding quarter in 2003.
AFTER TAX PROFIT
Speaking with the Sunday Business NCB's Managing Director Aubyn Hill said: "We are pleased to record an 84 per cent increase year on year in net profit after tax in spite of our tax position increasing by over $700 million year on year. The bank and its subsidiaries continue to do well in their core businesses and in spite of tough competition and changing interest rates.
"We expect to continue to grow our net income through serving more and more customers by offering special products such as those we launched earlier last week to small and medium size firms.
"NCB Capital Markets has become a major subsidiary of the bank and is serious about wealth and is securing more and more customers with its innovative product packages. A similar strategy is being followed by NCB Insurance Company."
