There are very few CEOs that we can pencil into this list on a year to year basis. Such is the level of consistency of the NCB boss that he has become something of a fixture on this list and we assume will be for years to come, as long as he remains at the helm of the banking giant. Hylton is the only CEO to maintain a presence on the list every year since 2005. He peaked at #4 on the 2006 list and placed sixth last year.

Patrick Hylton first received local and international acclaim when he was appointed a leading role by the Government in the rehabilitation of the Jamaican financial sector during the mid 1990s. The wealth of his experience in all facets of the financial services industry led to him being named the Managing Director of FINSAC for five (5) years, where he had responsibility for the re-structuring and divestment of intervened financial institutions and the acquired assets. His successful completion of that undertaking culminated in the national award of the Order of Distinction, Commander Class, being bestowed on him by the Prime Minister and Governor General of Jamaica in 2002.

In 2002 he joined the island’s largest commercial bank, National Commercial Bank Jamaica Limited (NCB), as the Deputy Group Managing Director, where his responsibilities included the Bank’s investment and insurance subsidiaries. On December 1, 2004 Mr. Hylton was appointed the Group Managing Director of NCB and since then he has led the organization to achieve record growth in profitability.

Complementing his strategic business acumen and an empathetic but firm leadership style, are his academic achievements as an Honours Graduate in Business Administration and as an Associate of the Chartered Institute of Bankers (ACIB) London. He is a Past President of the Jamaica Bankers Association and in addition to being a Director of NCB, Mr. Hylton is the Chairman of Harmonisation Limited and sits on several boards including the Caribbean Information and Credit Rating Services (CariCRIS).

The National Commercial Bank, under the direction of Managing Director, Patrick Hylton, stands heads and shoulders above local banks. Chairman Michael Lee-Chin gushed about the track record that his company had established in the banking sector over the years, in his mess
age to shareholder in the last annual report he said. “I invite you to join me in celebrating the fact that during the past year NCB continued to lead the local financial services sector by recording world-class performances in key areas of its operations. We welcomed the accolades that came from prestigious organizations such as “The Banker” magazine which recognized us not only in respect of our outstanding performance regionally, but internationally as well. Being named as one of the top performing banks in the world is a highly commendable achievement!” Lee-Chin beamed.

Here is how the different segments of their business operations performed over the year starting with the Consumer and SME segment which includes the Retail Banking and SME and Payment Services operations of their business. This incorporates the provision of banking services to individual and small and medium business clients, money remittance services and card related services. Operating profit reported for the segment was $3.22 billion which increased by $589 million or 22%. Our external operating revenue increased by 13% or $1.73 billion over the 2010 financial year. Net interest income for the segment grew by $801 million or 8% to $10.24 billion mainly due to reduced interest costs. Interest income experienced an overall decline of 4% as a result of reduction in loan yields; this was however partially off-set by the 35% and 9% growth in the Retail Banking loan and credit card receivables portfolios, respectively. Total operating expenses of $7.86 billion increased by $500 million or 7%, and this increase in operating expenses was primarily as a result of increased technical consultancy costs associated with sales related initiatives undertaken during the year.

Their Corporate Banking segment, which offers banking services mainly to large corporate clients, generated operating profits of $2.10 billion for the 2011 financial year, representing a decline of $826 million or 28% from the 2010 financial year. The decrease is attributed to a reduction in net interest income due to lower loan balances, as well as a reduction in interest earning loans due to a large loan being classified as non-performing during the year. External revenue decreased by $1.26 billion or 24%, and accounted for the $990 million reduction in net interest income. Net fee and commission income grew by $151 million or 46% mainly due to increased credit related fees. Total operating expenses increased by $45 million or 16%.

Their Treasury and Correspondent Banking segment incorporates the Bank’s liquidity and investment management function, management of correspondent bank relationships and relationships with other financial institutions as well as foreign currency dealing activities. This segment experienced growth in operating profits of $1.01 billion or 30%, mainly as a result of increased gains on foreign currency and investment activities. Net interest income grew by $316 million or 12% primarily due to reduced interest costs. Total operating expenses increased by $354 million primarily due to the impairmen losses on securities booked for $264 million.

Their wealth management segment recorded operating profits of $4.67 billion for the 2011 financial year, an increase of $1.12 billion over the previous financial year. Included in this segment are stock brokerage services, securities trading, investment management and other financial services provided by overseas subsidiaries. This improved performance was driven by increased net interest income and gains on investment activities.

For the 2011 financial year, their insurance and pension fund management segment achieved operating profits of $2.39 billion, an increase of 20% or $406 million. This segment incorporates the results of the life insurance, pension and investment management services of the Group. Total operating income grew by $2.64 billion or 87%. The main contributor to this improved performance was premium income which grew by $2.46 billion over the prior year primarily due to increased income from annuity premiums. Total operating expenses went up by $2.23 billion which was mainly attributable to the large annuity contracts entered into in the 2011 financial year.

Of the 2010/2011 financial year, Hylton said: “The growth in revenues and profitability of the organization has remained strong. We have maintained or achieved leading market share in key areas such as loans and deposits, while maintaining a strong capital base and strong liquidity. NCB was recognized by The Banker Magazine as Bank of the Year – Jamaica and as one of the top performing banks in the world. Our organization ranked 3rd and 14th, respectively, in the world among the contenders on returns on capital and return on assets and number one for both metrics among Central American banks.”

Among the highlights for the financial empire, Hylton identified:

• Leading the market in reducing interest rates in select product areas such as auto loans

• Reducing commitment fees, offering principal payment moratoriums and providing up to 100% financing to make vehicle purchases more affordable for customers

• Educating customers about the opportunity to reduce or eliminate banking fees by utilising Automated Banking Machines (ABMs), Customer Care Centre, Internet Banking site or their web-enabled mobile phones to conduct certain transactions.

• Suspending dormant charges on local and foreign currency accounts

• Collaborating with ActionCOACH to provide training to over 40 small and medium enterprises island-wide to help them build stronger businesses

• Partnering with Women Business Owners of Jamaica Limited and the IDB to develop women owned businesses nationwide

In his closing message in the 2011 Annual Report, Hylton promised that “while we are proud of our successes, our focus remains on reaching higher heights. In this way, each of you can be confident that your financial fortunes will grow as NCB grows.” With that in view we can be sure Mr. Hylton will again feature on next year’s list. BM