NCB shareholders pleased with Hylton
Published:Sunday | February 27, 2011 | 12:00 AM
Mark Titus, Business Writer
National Commercial Bank Jamaica (NCB) shareholders, at the company's annual general meeting on Thursday declared their satisfaction with Group Managing Director Patrick Hylton's stewardship and the bank's performance last year.
The company made net profit of J$11.1 billion for the period ending September 2010, then broke the J$3-billion barrier in one quarter for the first time in the bank's 173-year -old history during the first three months of the new financial year, October-December 2010.
"We almost achieved it last year, but this time we did it," said a victorious Hylton to rousing applause from shareholders.
But celebrations ceased, temporarily, during the question and answer section as meeting participants, while unanimously commending the directors, sought answers regarding areas that they argued could have produced more impressive results.
Dave Staple, a shareholder renowned for his deep scrutiny of the bank's financial statements, hurled a string of questions regarding increase in incremental operating expenses, and rate of growth in other areas that seemed to have waned.
"Although year over year, you are showing an increase in profitability, the incremental portion of it is on the decline," said Staple.
"What is the future plan of management to improve the continuous declines in net profits and assets, anything new?" he demanded.
"Mr Staple, as I listen to you, I am glad you are not my boss," said Hylton in riposte before repeating aspects of his address to the AGM, which covered plans to improve the company's performance.
He further explained that the bank's operation was significantly impacted by the state of the economy and the Jamaica Debt Exchange programme.
shareholders expressing gratitude
The meeting was otherwise taken up by shareholders expressing gratitude, including one identified as H. Henry, who called for chairman Michael Lee-Chin to be the next prime minister of Jamaica, while lamenting his experience investing in other public companies.
"All I get from one was a bag and a flashlight," he said, while lifting the gifts to show them.
He also asked the bank to adjust its dividend policy for more generous payouts.
"Mr chairman, you can't add a little something more to what we senior citizen get every three months?" Henry asked to laughter from the entire meeting room.
"I don't know about anybody else, but I could do with a little more."
NCB's earnings per share have moved from J$2.23 per share in 2006 to the current J$4.50.
The bank on Thursday, February 24, paid quarterly dividend of 45 cents per share, amounting to J$1.11 billion.
Last year, total dividend payment amounted to a combined J$1.46 per share,payouts for the calendar period at J$3.6 billion.