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Patrick Hylton started the year with an announcement that NCB will be re-structuring its operations to more closely align certain aspects of its business. Effective March 18, 2008 NCB Insurance Company Limited (NCBIC), which manages the insurance and pension and investment management activities of the Group, became an arm of the wealth management segment.
In commenting on the wealth management re-alignment, Patrick Hylton said that NCB is seeking synergies in its operations to meet changing customer needs, “Omni, the NCBIC’s flagship brand, is aligned with our other wealth management products and we want to maximize that strategic fit. The pension and investment management businesses are important growth areas for the group and we intend to intensify our focus to maximize our business opportunities. By consolidating our wealth management activities, existing and emerging customer needs can be better served.”
The other area of re-structuring was in the International Business Unit. This division oversees the group’s remittance operations in Grand Cayman, the United Kingdom and Jamaica. The remittance activities in these territories remain unchanged and now report into the Retail Banking Division, which is headed by General Manager, Courtney Campbell. Hylton pointed to the benefits of having Retail Banking assume this role, “incorporating remittances under Retail Banking will bring about further advantages by allowing us to better leverage our existing operating framework for service delivery.”
The restructured business unit was apparently not attractive enough for Campbell, an acknowledged top performer in the group, as it was subsequently announced that NCB would be losing Courtney Campbell who left NCB after five years in charge of retail banking and 23 years with the bank. Campbell indicated at the time that he had received the chance at a new venture that was too good to pass up. It was eventually revealed that he was heading to First Global Financial Group.
The resignation took the Patrick Hylton-led NCB by surprise. Senior Assistant General Manager for Marketing and Communication, Sheree Martin, said at the time that the bank was not yet in a position to comment on a replacement for Campbell who continues to churn out multibillion-dollar earnings for the group.
The restructuring brought with it other changes at the senior management level. Ann Marie Hamilton, Vice President of Operations for NCBIC was appointed Acting General Manager reporting to Christopher Williams the Managing Director of NCB Capital Markets Ltd who assumed overall responsibility for the Wealth Management segment.
Casualties of the restructuring included Ingrid Chambers, Managing Director of NCBIC and Mr. Chris Stokes, General Manager for NCB International Business who both demitted office March 18 and 20 respectively. Mr. Dennis Cohen, Deputy Group Managing Director continues to have oversight of Wealth Management, Retail Banking, Corporate Banking, and Treasury segments of the group’s business.
Since Mr. Hylton joined the NCB family as Deputy Managing Director in 2002, moving to Group Managing Director in 2004, his focus has been on the reinforcement of its financial strength. Over this time, total operating income and net loans increased by approximately 230% and 270%, respectively, while the cost to income ratio fell from 77% to 57%.
NCBJ generated Operating Income of $24.7 billion at year end 30 Sept 2008 compared with $20.55 billion at the end of the 2007 financial year. Net Profit of $8.7 billion was 31.8% better than the $6.6 billion generated at the end of 2007. EPS for 2008 came out at $3.54 compared with $2.68 the previous year.
Shareholders’ Equity of $31.3 billion was 9.63% better than the $28.55 billion reported in 2007. A total dividend paid out in the 2008 financial year was $1.27 per share. NCBJ’s Total Assets for the 2008 financial year stood at $291.15 billion, a14.5% increase over 2007.
Patrick Hylton is quoted as saying “We believe that our success is being driven on three pillars – Innovation, Expertise and Strength. Creating innovative products, investing in employee expertise and having a sound financial management framework, are the hallmarks of distinction to which we adhere … We are constantly raising the bar of performance and seeking ways to improve, because our goal is to be a world class financial institution.”
Patrick Hylton, Group Managing Director of National Commercial Bank Jamaica said in his statement accompanying the 2008 financials: “In the past four years, our growth has consistently outpaced the industry and today our company stands as Jamaica’s largest and best capitalized bank, reflecting innovation, expertise and strength for the over one million Jamaican individuals and businesses that we serve both here and abroad.
We learnt more in the 2008 Financial Year in several respects. Our ability to anticipate and respond to changes that were evident in the wider operating environment was tested time and time again. We responded very well and were able to offset potential adversities that threatened our viability.
The result was continued profitability in all business lines, with the highest level of growth being recorded in our Retail Banking segment, which ended the year with an 80% increase in operating profits. The targets for key financial ratios in the 2008 Financial Year were all met.
The performance to date indicates that we are on the right track. Given the realities of the local and global economy, we know that the face of financial services has changed forever. While the year ahead will be uniquely challenging, our company’s future is sound and we are more than capable of recording continued success. We will continue to leverage our financial and operational strengths, pursue innovations that attract and retain customers and intensify our focus on employee expertise. Our goal is to be a world-class financial institution – we are undoubtedly on our way there.” BM