The National Commercial Bank Jamaica Limited (NCBJ) has reported an 11 percent increase in net profit for the six month period ending in March, compared to the same period last year.

According to the company’s financials, the six month period saw net profit increase by $594 million to the $6 billion mark.

Meanwhile for the three month period ended March 31, net profit was $3.6 billion, an increase of 10.2 per cent, or $332 million.

The Treasury & Correspondent Banking segment was the largest contributor to operating profit, contributing 28.4 per cent.

Net loans of $172.7 billion, grew by $14.8 billion, or 9.4 per cent while customer deposits of $251.0 billion, increased by $41.0 billion, or 19.5 per cent.

For the six month period net interest income increasing by 9.4 per cent or $1.2 billion, due to growth in the net loans and investment securities portfolios and a reduction in interest expenses driven by the decline in the repurchase agreements portfolio.

Premium income grew by $687 million, or 18.5 per cent with higher levels of life insurance (individual and group) and annuity contracts.

Net fee and commission income increased by 7.9 per cent, or $384 million,.
For the group, operating expenses increased by 10.8 per cent, or $1.8 billion, over the six months.

Overall, loans and advances, which totalled $172.7 billion (net of provision for credit losses) as at March 31, 2016, grew by 9.4 per cent, or $14.8 billion, compared to the loan portfolio as at March 31, 2015.

Non-performing loans for the group totalled $8.5 billion as at March 31 compared to $8.8 billion the year before and represented 4.8 per cent of the gross.

Customer deposits were $251.0 billion, up 19.5 per cent or $41.0 billion over the prior year driven, the group said, by growth in savings, current accounts and fixed deposit portfolios, which increased by 20.5 per cent, 25.5 per cent and 11.8 per cent respectively, over the prior year.

Earnings per stock unit for the period was $2.44, increased by $0.25 cents for the group and its subsidiaries.

Total assets of $555.6 billion, grew by 13.7 per cent, or $67.0 billion for the group.