NCB Financial Group Limited (NCBFG) earnings for its shareholders jumped nearly five-fold year-on-year to $15 billion but that’s still halfway away from record levels.
“I wish we could have made more progress because we are not where we need to be,” said CEO Robert Almeida at Friday’s investors briefing.
The company earned a consolidated profit of $23 billion, but this figure falls to $15 billion after deducting non-controlling interests. This adjustment accounts for the share of profits for its partially owned subsidiaries, such as Guardian Holding. In the previous year, it made a profit of $8.5 billion and $3.3 billion after removing non-controlling interest.
“We are progressing steadily for the long-term goal for NCB,” said Almeida, which is to return and surpass COVID-19 levels of profit.
The group made a record profit of $30 billion in 2019, both on a consolidated basis and after removing non-controlling interest. That’s because it happened prior to owning its large stake in Guardian.
“We are on the right track which gives opportunities for the future,” said Almeida.
He said management had successfully steered the group through high inflation and rising interest rates, positioning the bank for the next phase of stability and growth. He expects to get the group to record profit levels by "2026".
NCBFG's revenue increased by 4.0 per cent to $120 billion, even as the bank focused on business efficiency, cost management, and adoption of new accounting standards.
The loan portfolio remained strong, with loans and advances totalling $626 billion, or two per cent higher. NCBFG acknowledged customer service issues and its impact on revenue and profit.
“A year ago, it was very noisy in the marketplace. Customers were overtly not happy,” said Michael Lee-Chin chairman of NCBFG in his remarks at the Investors Briefing. “
“We are still not happy with what our customer service is. But directionally, the turnaround is obvious.”
Shareholders equity equated to $174.5 billion from US$143 billion a year earlier.
