Amid evolving market conditions, NCB Financial Group Limited (NCBFG) has outlined an ambitious agenda for the 2025 fiscal year. At a recent investor briefing, Chairman Michael Lee-Chin and senior executives addressed critical challenges and underscored their resolve to achieve transformative goals centered on efficiency, governance, and customer satisfaction.
This follows a year of leadership changes and renewed focus, as Lee-Chin’s hands-on approach has driven significant strides across the group. The efficiency, governance, and customer experience (EGC) initiative, launched in 2024, has already reduced NCBFG’s cost-to-income ratio from 86.3% to 71.6% while increasing margins to 28%—a notable improvement from 13.7% previously. Despite this progress, Lee-Chin has set a bold benchmark of achieving a 50% cost-to-income ratio and a return on equity closer to 20%.
“We’ve come a long way, but we have a long way to go,” Lee-Chin acknowledged, pointing to the group’s continuous journey toward excellence in service delivery and operational transparency.
Customer Experience in the Spotlight
One of NCBFG’s primary objectives for 2025 is to revolutionize its customer service. After facing heightened criticism a year ago, Lee-Chin emphasized a shift toward a more proactive engagement model, involving on-the-ground interactions with clients. “We’re addressing concerns directly, whether at homes or businesses, and seeing positive change. However, we’re not yet satisfied,” he stated.
The group is also preparing for the rollout of advanced features such as virtual Visa debit cards on the Lynk platform, a move anticipated to redefine contactless payment convenience for customers. Additionally, the bank is enhancing its automated banking machine (ABM) network to align with updated standards from the Bank of Jamaica.
Support for Small Businesses
NCBFG is focusing heavily on streamlining financial processes for small and medium enterprises (SMEs). Sheree Martin, executive vice-president of NCB Jamaica’s Retail Banking Division, highlighted plans to expedite loan approvals and make financing more accessible for SMEs, acknowledging the time-sensitive nature of their needs.
This approach seems to be paying off, as the SME segment saw a remarkable 120% growth in 2024. Additionally, the retail banking segment recorded an operating profit of $1.81 billion, a significant turnaround from a $720-million loss the prior year.
Financial Performance and Adjustments
The group’s financial health also saw a lift, with consolidated net profit surging 174% year-over-year to $23.25 billion. Total assets grew 5% to $2.32 trillion, while shareholder equity rose 22% to $174.45 billion, driven in part by share issuances and a successful additional public offering (APO). However, challenges remain, as NCBFG reported an increase in unpaid corporate and commercial loans and continued efforts to finalize asset sales in international markets.
In compliance with the new IFRS 17 accounting standards, NCBFG restated its 2023 financials, reflecting a more standardized approach to insurance operations. While this reduced previously reported earnings for 2023, it provided clearer insights into 2024’s 4% rise in operating income to $120.01 billion.
Future Prospects
Despite a 24% decline in its share price on the Jamaica Stock Exchange year-to-date, NCBFG remains focused on delivering shareholder value through dividends and strategic growth. The upcoming fiscal year promises further innovations as the group seeks to optimize internal operations, enhance customer experience, and navigate evolving market demands.
“Our mission is clear: to position NCB Financial Group as the benchmark for financial excellence in the region,” Lee-Chin concluded.
