NCB posts $405m net profit

NCB GROUP yesterday posted a net profit of $405 million in the year to the end of September 1999, which comes after posting a $1 billion loss last year.

The profit included a $200 million gain from the sale of Jamaica Orange Company, which it sold to the Agricultural Credit Bank during the year.

Revenue in the year rose from $14.5 billion to $15 billion, while expenses dropped from $14.97 billion to $14.69 billion. The banking arm of the financial services group contributed $221 million to group profit, according to NCB Group managing director Dunbar McFarlane.

NCB said 54 per cent of its income earning assets related to $36.1 billion of FINSAC bonds. Some 50 per cent of its income from loans and securities came from $6.6 billion of FINSAC interest.

At the end of 1997, NCB struck a deal which saw FINSAC agree to provide $19.5 billion in financial support, which includes money invested in NCB Jamaica. FINSAC assumed $13.5 billion in non-performing debt and provided a financial assistance package of $4.67 billion as part of the$19.5 billion deal.

 December  3, 1999

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