Patrick Hylton, NCB Group managing director. - file Ashford W Meikle, Business Reporter
The National Commercial Bank Group is reporting a 32 per cent year over year increase in its net profit for its second quarter mainly as result of the growth in the bank's income from its non-core operations.
For the quarter ending March 31, NCB's net profit surged to $1.6 billion, compared to the $1.2 billion earned in the matching period for the previous year.
But, the group, in fact, posted single digit growth in its core operations during the quarter: net interest income from loans and securities rose by just eight per cent, to $3.1 billion.
Earning assets
The bank has said in the past that it intends to grow its loan portfolio; in fact, in the statement accompanying the results, management said the group continues to focus "more on growing earning assets quarter over quarter."
But, during the current quarter, its interest income from loans only increased by five per cent, to $1.9 billion, leaving its asset mix at almost the same level.
The group's $49 billion loan portfolio represents just 20 per cent of its $234 billion asset base, compared to the almost 60 per cent of its assets is concentrated in investment securities.
In fact, percentage wise, the most impressive growth in the bank's income came from its fee and commission income, net trading income and dividend income.
Net fee and commission income, for example, climbed by 23 per cent, to $873 million for the second quarter. During the same period there was a 78 per cent increase in net trading income, which jumped by to $870 million.
There was also a significant jump in other income, from $30 million to $356 million, however, the bank did not provide an explanation for what appears to be an anomaly.
With expenses rising by 24 per cent, to $3.2 billion, NCB's operating profit rose by 29 per cent to just over $2 billion for the quarter.
ashford.meikle@gleanerjm.com
National Commercial Bank Six-Month RESULTS
| Stock symbol | NCBJ |
| Total Revenue | $16.55billion |
| Operating income | $10.1 billion |
| Net Profit | $3.1 billion |
| Assets | $233.8 billion |
| ROAA | 2.73% |
| Cost/Income Ratio | 59.16% |
| Loans | $48.6 billion |
| Equity | $27.5 billion |
| EPS | $1.27 |
| Net Asset Value/Share | $11.16 |
| Market Cap | $52.5 billion
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