NCBFG seeks greater share of wallet Caribbean-wide as Jamaica sees slower growth
The NCB Financial Group is seeking new ways to increase share of wallet across jurisdictions, even as it reports an uptick in several countries where it has established a masthead. Its primary market, Jamaica, has witnessed reduced growth over time.The company in it new electronic annual report states that it intends to grow share of wallet by improving a “needs-based sales process” across the group to ensure that a greater proportion of customers are reached.
Under the current geographical composition for the financial group, total revenue continues to be led by Jamaica which has 52 per cent share, followed by Trinidad and Tobago with 18 per cent revenue share, the Dutch Antilles with 10 per cent of revenues, Bermuda with 5 per cent and Other territories accounting for 15 per cent.
The NCB Financial Group Limited is a financial services conglomerate headquartered in Kingston Jamaica but operating Caribbean-wide. It is the parent company of the National Commercial Bank of Jamaica, the and a majority shareholder in Guardian Holdings Limited one of the biggest insurance providers in the Caribbean region. It is also a majority shareholder in Clarien Group Limited in Bermuda.
The new report indicates that Barbados, Bermuda, and the Cayman Islands reported improvements in real output based on the available data; however, Jamaica’s economy, though growing in the first half of the financial year (1.7 per cent in the December quarter and 1.4 per cent in the March quarter), saw its growth momentum slow markedly in the June quarter to 0.2 per cent as both service and goods-producing industries decelerated.
Overall, Jamaica’s economy grew by 1.7 per cent and Bermuda’s economy grew by 4.7 per cent in Q4 2023. The NCBFG closes its financial year on September 30 each year.
Q4 2024 figures are not available for other territories but for the entire year of 2023, Barbados grew 4.0 per cent while the Cayman islands grew 4.2 per cent.
Comparatively, for 2023, Jamaica and Bermuda also grew by 2.6 per cent and 4.0-4.5 per cent, respectively.
Growth projections
The report notes, “robust tourism activity continued to propel growth in Barbados, Bermuda, and the Cayman Islands and was a major growth driver for these economies for the rest of the financial year. Increased airlift capacity and marketing initiatives, which fueled tourist arrivals, along with business services, and construction added to Barbados’ 3.9 per cent growth for the first three quarters of 2024.”
For Bermuda, strong cruise and air arrivals, along with the effectiveness of supportive government policies and prevailing market conditions, NCBFG stated, supported the 7.1 per cent growth seen in Q1 2024.
Whilst data is limited for the Cayman Islands, it is estimated that the demand for the islands’ key services – finance and insurance, along with strong tourism activities (+6.5 per cent for the first half of 2024) have kept growth strong since 2024.
The report outlined that for energy-dependent Trinidad and Tobago (T&T), “its economy continues to be supported by non-energy sectors (Wholesale and Retail Trade, Construction and Manufacturing, etc.) as preliminary reports showed declines in crude oil and natural gas output, while it grapples with ongoing structural issues and a mature hydrocarbon sector.”
Management concluded, “ Looking ahead to the new financial year, the outlook for our operating economies is cautiously optimistic. The forecast is for growth to moderate across all our territories, with growth ranging from 1.8 per cent on the low end for Barbados to 2.8 per cent for the Cayman Islands on the higher end in 2025. “
The outlook is premised on modest growth in tourist arrivals as activity normalises, capacity constraints (Bermuda), ongoing fiscal consolidation measures (Barbados, Jamaica), and the fact that most territories have already returned to their pre-pandemic/historical growth levels.
Growth in manufacturing, construction and financial sectors, government efforts to enhance infrastructure and attract foreign investments, and falling interest rates and their impact on investment activity (Jamaica) also underpin the growth forecast across our territories for the rest of 2024 into 2025.
For Jamaica, government disbursements toward agriculture growth and investments in the construction sector, given efforts to rebuild damaged structures caused by Beryl, is expected to support growth through the rest of 2024 into 2025.
Outside of tourism, Barbados’ growth is expected be driven by investment in resilient infrastructure (e.g., Climate Resilient Water Infrastructure), and ongoing structural reforms). In Bermuda, it government policy will continue to attract new firms to the island. Public investments and renewable energy projects should also support economic activity. In 2025 in the Cayman Islands are expected to benefit from continued growth in tourism.
In the case of Trinidad and Tobago, management stated, “ robust household spending given higher wages will be the main growth driver for T&T as the country navigates a transition toward more sustainable energy and economic diversification. These factors should help to create a favourable backdrop throughout 2025.”
Risk factors include global uncertainties, including escalating geopolitical tensions in the Middle East and the region’s vulnerability to downturns in the performances of major trading partners, as well as delays in the execution of planned projects and natural disasters are all factors that could lead to slower-than-projected growth into 2025.
For the fiscal year 2023/243 (FY24), inflation moderated across all our operating environments. While Jamaica, Barbados, the Cayman and Bermuda have experienced differing paces of disinflation due to country-specific factors, all have benefited from global supply chain improvements and declining international energy prices.
Despite the continued decline in global food and shipping costs since early 2023, however, Jamaica’s headline inflation for the first two quarters of FY244 remained volatile due to domestic pressures, including the implementation of the first of a two-stage PPV fare hike5, wage pressures and high agricultural inflation.
The report notes, “robust tourism activity continued to propel growth in Barbados, Bermuda, and the Cayman Islands and was a major growth driver for these economies for the rest of the financial year. Increased airlift capacity and marketing initiatives, which fueled tourist arrivals, along with business services, and construction added to Barbados’ 3.9 per cent growth for the first three quarters of 2024.”
For Bermuda, strong cruise and air arrivals, along with the effectiveness of supportive government policies and prevailing market conditions, NCBFG stated, supported the 7.1 per cent growth seen in Q1 2024.
Whilst data is limited for the Cayman Islands, it is estimated that the demand for the islands’ key services – finance and insurance, along with strong tourism activities (+6.5 per cent for the first half of 2024) have kept growth strong since 2024.
The report outlined that for energy-dependent Trinidad and Tobago (T&T), “its economy continues to be supported by non-energy sectors (Wholesale and Retail Trade, Construction and Manufacturing, etc.) as preliminary reports showed declines in crude oil and natural gas output, while it grapples with ongoing structural issues and a mature hydrocarbon sector.”
Management concluded, “ Looking ahead to the new financial year, the outlook for our operating economies is cautiously optimistic. The forecast is for growth to moderate across all our territories, with growth ranging from 1.8 per cent on the low end for Barbados to 2.8 per cent for the Cayman Islands on the higher end in 2025. “
The outlook is premised on modest growth in tourist arrivals as activity normalises, capacity constraints (Bermuda), ongoing fiscal consolidation measures (Barbados, Jamaica), and the fact that most territories have already returned to their pre-pandemic/historical growth levels.
Growth in manufacturing, construction and financial sectors, government efforts to enhance infrastructure and attract foreign investments, and falling interest rates and their impact on investment activity (Jamaica) also underpin the growth forecast across our territories for the rest of 2024 into 2025.
For Jamaica, government disbursements toward agriculture growth and investments in the construction sector, given efforts to rebuild damaged structures caused by Beryl, is expected to support growth through the rest of 2024 into 2025.
Outside of tourism, Barbados’ growth is expected be driven by investment in resilient infrastructure (e.g., Climate Resilient Water Infrastructure), and ongoing structural reforms). In Bermuda, it government policy will continue to attract new firms to the island. Public investments and renewable energy projects should also support economic activity. In 2025 in the Cayman Islands are expected to benefit from continued growth in tourism.
In the case of Trinidad and Tobago, management stated, “ robust household spending given higher wages will be the main growth driver for T&T as the country navigates a transition toward more sustainable energy and economic diversification. These factors should help to create a favourable backdrop throughout 2025.”
Risk factors include global uncertainties, including escalating geopolitical tensions in the Middle East and the region’s vulnerability to downturns in the performances of major trading partners, as well as delays in the execution of planned projects and natural disasters are all factors that could lead to slower-than-projected growth into 2025.
For the fiscal year 2023/243 (FY24), inflation moderated across all our operating environments. While Jamaica, Barbados, the Cayman and Bermuda have experienced differing paces of disinflation due to country-specific factors, all have benefited from global supply chain improvements and declining international energy prices.
Despite the continued decline in global food and shipping costs since early 2023, however, Jamaica’s headline inflation for the first two quarters of FY244 remained volatile due to domestic pressures, including the implementation of the first of a two-stage PPV fare hike5, wage pressures and high agricultural inflation.
Group performance
NCB Financial Group Limited (NCBFG) for the year ended September 30, 2024, recorded a consolidated net profit increase of 174 per cent to $23.3 billion. Profit attributable to stockholders of the parent increased by 357 per cent to $15.0 billion.
Operating income rose by 4 per cent to $120 billion. Gains on foreign currency and investment activities rose by 10 per cent to $3 billion, while net interest income and net fee and commission income grew by 2 per cent and 7 per cent, respectively.
Efficiency measures, management outlines, contributed to an 11 per cent decline in operating expenses to $92.2 billion, supported by an 18 per cent per cent reduction in staff costs following the restructuring in the previous financial year.
The Group’s insurance segment posted a 27 per cent increase in its service results to $18.5 billion, despite approximately $400 million in claims related to Hurricane Beryl. Loans and advances grew by 2 per cent to $626.2 billion, driven by higher demand for loans during the year. Customer deposits rose 5 per cent to $784 billion. The company reports total group assets of J$2.3 trillion.
NCB Financial Group Limited (NCBFG) for the year ended September 30, 2024, recorded a consolidated net profit increase of 174 per cent to $23.3 billion. Profit attributable to stockholders of the parent increased by 357 per cent to $15.0 billion.
Operating income rose by 4 per cent to $120 billion. Gains on foreign currency and investment activities rose by 10 per cent to $3 billion, while net interest income and net fee and commission income grew by 2 per cent and 7 per cent, respectively.
Efficiency measures, management outlines, contributed to an 11 per cent decline in operating expenses to $92.2 billion, supported by an 18 per cent per cent reduction in staff costs following the restructuring in the previous financial year.
The Group’s insurance segment posted a 27 per cent increase in its service results to $18.5 billion, despite approximately $400 million in claims related to Hurricane Beryl. Loans and advances grew by 2 per cent to $626.2 billion, driven by higher demand for loans during the year. Customer deposits rose 5 per cent to $784 billion. The company reports total group assets of J$2.3 trillion.
Photo: Robert Almeida, Group CEO of NCBFG
Caribbean Money Daily
Caribbean Money Daily
Caribbeanmoney.blogspot.com
Follow us for breaking news
Email austanny@yahoo.com
.JPG)
Comments
Post a Comment