NCB goes for more market share

Group managing director of National Commercial Bank Jamaica, Patrick Hylton, said the organization would continue to build on strengthening efficiency and productivity, growth enhancement and people development which resulted in its outstanding performance during the last financial year.



By leveraging its sales team, the bank would continue to deepen customer relationship in an effort to increase its share of the market, Hylton told shareholders at the company's annual general meeting at the Wyndham Hotel, New Kingston on Thursday.



At the end of the last financial year ended September 2011, the bank hit a new record of J$13 billion in net profit, a performance attributed to growth in its core business as well as gains on foreign currency trading and investment activities.



Hylton also announced that the bank was in the process of enhancing its capability to expand the credit market in Jamaica.



"In Jamaica, the penetration of loans and credit cards from traditional financial institutions is very low relative to what we see in countries across Latin America and the Caribbean," he said.



"It is our goal to reshape the nature of the credit market over the next few years to enhance the lives of ordinary Jamaicans," he added.



Hylton said the company has already embarked on a refresh of its technology platform to allow for better service by investing in non-branch channels such as ABMs and internet banking.



"We are seeking to serve customers in more cost effective ways," said the managing director.



But even as Hylton announced his intention to increase market share and improve services, some shareholders expressed dissatisfaction with the amount of amount of money the bank paid to individual shareholders in dividends.



"How come in a year where you made super profits the dividend we receive has declined?" asked one shareholder, Orette Staples.



Another shareholder called for the bank's dividend policy to be more predictable and consistent as in other entities.



Hylton promised to take those issues into consideration.



NCB pays a maximum of 50 per cent of the realised profit earned each year in dividends, and is applied after taking account of all expenses.



However, in the event that the payout is less than 50 per cent of profits in any one year, the board reserves the right to increase future distributions proportionately.



During its last financial year, NCB periodically paid dividends ranging from J$0.18 to J$0.45 per ordinary stock unit.



NCB earlier today traded at $25.05 on the Jamaica Stock Exchange. Its more than two billion ordinary shares are valued at $61.7 billion on the market.



The bank plans to cross-list on the New York Stock Exchange and has already selected J.P. Morgan as the investment bank for the initial public offering of the company's shares.



But, observing what he says was a ‘quiet period’ under United States law, Hylton said he was unable to give an update in relation to the planned listing.



NCB also trades on the Trinidad & Tobago Stock Exchange.



sabrina.gordon@gleanerjm.com