NCB Financial Group 2022 Annual Report (2024)

NCB Financial Group 2022 Annual Report (2)

Download Annual ReportDownload Proxy FormNotice of AGM

1. Our Business in Brief

2. Our Values

3. Chairman’s Message

4. President’s Message

5. Performance Highlights

6. Watch Stories of Unlocking Dreams

NCB Financial Group 2022 Annual Report (3)

NCB Financial Group 2022 Annual Report (4)

Today, NCB Financial Group Limited (NCBFG) remains resilient as we continue to navigate a historic period of global turmoil, which spared no organisation from the challenges of a lifetime.

Cognisant of the headwinds that remain, we continue undaunted – bolstered by our commitment to our purpose and to the stakeholders we serve. We celebrate the challenges and triumphs that have shaped the organisation throughout its history, with roots dating back 185 years. We salute the passion, dedication and sacrifice of each team member, customer, partner, and shareholder who has been part of the journey. After 185 years of empowering people, unlocking dreams and building communities, we stand unified, confident, and energised to do even more.

As we forge into a future that promises to be dynamic and uncertain, we remain steadfast in pursuit of our aspiration to become a world-class Caribbean financial ecosystem. Throughout our history, we have emerged stronger from crises by actively searching and capitalising on the inherent opportunities present in each crisis. We are committed to playing a pivotal role in the pursuit of economic growth and improved livelihoods for citizens of the region through the products and services we provide; our corporate philanthropy and citizenship; good corporate governance; and by serving as an example of achieving bold aspirations despite challenges and constraints. Facing the challenges of today is the only way to unlock the possibilities of tomorrow. Rest assured, that while the journey may require pivots and detours, our determination is fixed.

NCB Financial Group 2022 Annual Report (5)

Today, NCB Financial Group Limited (NCBFG) remains resilient as we continue to navigate a historic period of global turmoil, which spared no organisation from the challenges of a lifetime.

Cognisant of the headwinds that remain, we continue undaunted – bolstered by our commitment to our purpose and to the stakeholders we serve. We celebrate the challenges and triumphs that have shaped the organisation throughout its history, with roots dating back 185 years. We salute the passion, dedication and sacrifice of each team member, customer, partner, and shareholder who has been part of the journey. After 185 years of empowering people, unlocking dreams and building communities, we stand unified, confident, and energised to do even more.

As we forge into a future that promises to be dynamic and uncertain, we remain steadfast in pursuit of our aspiration to become a world-class Caribbean financial ecosystem. Throughout our history, we have emerged stronger from crises by actively searching and capitalising on the inherent opportunities present in each crisis. We are committed to playing a pivotal role in the pursuit of economic growth and improved livelihoods for citizens of the region through the products and services we provide; our corporate philanthropy and citizenship; good corporate governance; and by serving as an example of achieving bold aspirations despite challenges and constraints. Facing the challenges of today is the only way to unlock the possibilities of tomorrow. Rest assured, that while the journey may require pivots and detours, our determination is fixed.

NCB Financial Group 2022 Annual Report (6)

  • CLARIEN ENTITIES
  • GUARDIAN ENTITIES
  • NCB ENTITIES

Clarien Group provides personal, commercial, and private banking services to clients primarily based in Bermuda.

It is one of the largest independent, privately-owned integrated financial services organisations in Bermuda, with an extensive portfolio of offerings. These include personal banking, business banking and payment services through Clarien Bank Limited; exclusive wealth management services through Clarien Investments Limited; and customised trust and fiduciary services through Clarien Trust Limited.

Guardian Holdings Limited is the parent company of the Guardian Group, an integrated financial services provider that focuses on life, health, property, and casualty insurance, as well as pensions and asset management.

The Group currently serves markets in 21 territories across the English- and Dutchspeaking Caribbean, including Aruba, Barbados, Bonaire, Curaçao, Jamaica, St. Maarten, and Trinidad and Tobago.

The NCB Entities provide an expansive range of products and services aimed at meeting all the personal and commercial banking, payment services, wealth, insurance, and asset management needs of customers primarily in Jamaica, the Cayman Islands, Barbados and Trinidad and Tobago.

The NCB Entities comprise National Commercial Bank Jamaica Limited (NCBJ), TFOB (2021) Limited (TFOB) and NCBJ’s subsidiaries - the main subsidiaries being NCB Capital Markets Limited, NCB Capital Markets (Barbados) Limited, NCB Insurance Agency and Fund Managers Limited, NCB (Cayman) Limited, and NCB Merchant Bank (Trinidad and Tobago) Limited.

NCBJ and its Jamaican subsidiaries have over 20 locations – including digital and full-service branches and six financial centres – and more than 300 ABMs and financial kiosks. TFOB is a fintech company providing digital financial services. TFOB introduced Lynk, a mobile wallet, in 2021, enabling customers to send and receive money from their mobile devices via peer-to-peer transfers.

NCB Financial Group 2022 Annual Report (7)NCB Financial Group 2022 Annual Report (8)NCB Financial Group 2022 Annual Report (9)NCB Financial Group 2022 Annual Report (10)NCB Financial Group 2022 Annual Report (11)NCB Financial Group 2022 Annual Report (12)NCB Financial Group 2022 Annual Report (13)

Through these segments,NCBFG is able to serve its customers with a wide range of specialised and customised financial products and services.

NCB Financial Group 2022 Annual Report (14)

Empowering People

NCB Financial Group 2022 Annual Report (15)

Unlocking Dreams

NCB Financial Group 2022 Annual Report (16)

Building Communities

NCB Financial Group 2022 Annual Report (17)

Respect

Treat others how we want to be treated.

NCB Financial Group 2022 Annual Report (18)

OWNER’S
MINDSET

Take accountability for all outcomes and embrace challenges as opportunities to win!

NCB Financial Group 2022 Annual Report (19)

CUSTOMER
OBSESSION

Delights all customers as he/she consistently anticipates and exceeds their expectations.

NCB Financial Group 2022 Annual Report (20)

TEAMWORK

Collaborate and support others on the journey towards our aspiration.

NCB Financial Group 2022 Annual Report (21)

INNOVATION

Think creatively and pursue solutions that add value.

NCB Financial Group 2022 Annual Report (22)

BOLDNESS

Speaks up, shows up courageously and pushes relentlessly towards our aspiration.

NCB Financial Group 2022 Annual Report (23)

TRUSTWORTHINESS

People can rely on us to show up with integrity and do what we say.

NCB Financial Group 2022 Annual Report (24)

Hon. Michael Lee-Chin, O.J.

Chairman

"In all 185 years of our existence, we have never been as clear about our purpose as we are today. Every single action we take is deliberate and grounded in the prospect of empowering people, unlocking dreams and building communities."

My Fellow Shareholders,

My fellow directors and I have the responsibility of stewarding a portion of your investment portfolio. It is a responsibility we take seriously, and we are grateful for your confidence and the privilege you have bestowed on us. I am proud of NCB Financial Group’s financial performance within the context of continued global challenges. You can be confident that you are investing in a company that is built to last – with leaders expertly navigating the balance of strength and innovation. We are fortifying the institution to withstand shocks while re-imagining and re-engineering our business model for future growth. A well-run organization is focused on long-term viability and sustainable returns.

“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” – Warren Buffett

The NCB Financial Group continues to embody key characteristics of my wealth philosophy.

  1. It is a high-quality business.
  2. It is domiciled in strong long-term growth industries.

NCB has evolved from a predominantly Jamaica-based banking group into the NCB Financial Group - a full service regional financial conglomerate, present in over 21 territories. The journey has not been without challenges, as the institution successfully navigated and emerged stronger following local and global financial crises.

In 2022, we also recognised NCB’s 185-year anniversary, with roots dating back to 1837 when the Colonial Bank of London, England established a presence in Jamaica. The journey since that time has included a series of mergers and acquisitions and the emergence from a colonial past into an indigenous institution with world class ambitions. We acknowledge the full history as we pay homage to the customers and employees who contributed along the way. This year, we also celebrated 60 years of independence for Jamaica as well as Trinidad and Tobago – the countries where we currently have our largest presence.

A well-performing financial institution has the unique opportunity to enable wealth creation for its shareholders, its customers and the countries in which it operates. What each NCB Financial Group shareholder owns is a stake in a company committed to building indigenous wealth in all the communities we serve.

For our shareholders, total long-term shareholder returns have been strong. Our investment and mortgage solutions enable our clients to grow their wealth and create a legacy to pass on to

the next generation. Our insurance business enables clients to protect their health and property, which in turn plays a key role in preserving and transferring wealth. For our business customers, our debt, public and private equity solutions, provide the necessary capital for business growth. Owning businesses creates wealth for families and generates economic growth.

Through the launch of Lynk, our digital payments solution, we have laid a strong foundation for enhancing financial inclusion for the unbanked, and putting them on a path for wealth creation.

For the countries in which we operate, we have been a primary taxpayer. For the period October 2021 to August 2022, our tax payments were equivalent to 1.1% of the total tax revenue base of the Government of Jamaica and 0.5% of total tax revenues for the Government of Trinidad and Tobago.

In FY 2022, we collaborated with Factories Corporation of Jamaica on the Morant Bay Urban Centre. We provided debt and equity financing to facilitate this transformational project, which is estimated to provide over 3,000 jobs and revitalise the Morant Bay Community.

Through the foundations across the NCB Financial Group, we have donated over J$2 billion and positively impacted the lives of over 250,000 citizens.

I believe that today we are as clear as we have ever been, in all 185 years of our existence, about our purpose. Every single action we take is deliberate and grounded in the prospect of empowering people, unlocking dreams and building communities. This recent period of social, political, and economic volatility and uncertainty has reshaped and redefined life and business. While it continues to be unsettling for many, it has sharpened our focus and unearthed new opportunities. The ability to find such opportunities amid crisis is a skill we have honed and a mindset we have adopted along our journey. I embrace the present with the knowledge that “In the middle of difficulty, there is opportunity. The bigger the difficulty, the bigger the opportunity.” – Albert Einstein.

With our 2024 aspiration to become a world-class Caribbean financial ecosystem in full focus, I take this opportunity to thank all shareholders and customers for their continued trust and confidence, and each employee for helping to steer the ship to the next destination.

With our continued partnership, I am excited about what is to come.

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NCB Financial Group 2022 Annual Report (25)

Hon. Patrick Hylton, OJ, CD, LL.D (Hon)

President and Group Chief Executive Officer

“Our shareholders can rest assured that we are taking full advantage of this moment in history. It is within this context that I affirm that the NCB Financial Group remains focused and committed to its aspiration of becoming a world-class Caribbean financial ecosystem and its purpose of Empowering People. Unlocking Dreams. Building Communities.”

Dear Shareholders, Colleagues, Customers and Partners,

I will start this year’s letter in the same way I closed last year’s letter to you

“These are the times in which a genius would wish to live. It is not in the still calm of life, or the repose of a pacific station, that great characters are formed. The habits of a vigorous mind are formed in contending with difficulties. Great necessities call out great virtues.”– Abigail Adams

Since then, despite a relaxation of pandemic precautions on a global scale, we have seen several challenging developments – among these the Russia-Ukraine conflict, a number of local and global benchmark rate increases to tame inflation, and in July 2022, the World Health Organization classification of monkey pox as a “public health emergency of international concern.” No country or business has been exempt from the leadership challenge of a lifetime due to the economic and social effects of this unusual chain of events.

For many, this has been unsettling. However, I view the time in which we are living as a gamechanger and an opportune time to accelerate positive change. So, what have we been doing with this opportunity?

  1. Innovating and disrupting the status quo
  2. Building new capabilities
  3. Focusing on our people
  4. Strengthening our resilience

Innovating and disrupting the status quo

We introduced Lynk, our digital wallet, in December 2021. There is no need to visit a branch to sign up; it may all be done on a mobile device. Payments to businesses and transfers to individuals are both free and instant. We have been able to expand access to financial services for the unbanked and remove many pain points from the typical banking experience thanks to a regulatory environment created to enable greater financial inclusion and our development of a fintech company. Even though it is still early, it is not surprising that since the launch, more than 170,000 unique customers and more than 4,700 merchants have joined. Additionally, Lynk is the only digital wallet integrated with JAM-DEX, Jamaica’s central bank digital currency.

Using a strategic alliance with an online pharmacy in Trinidad and Tobago, Guardian Life began offering e-pharmacy services to its clients in 2021. Through the use of an integrated platform, our customers have access to a service that links patients and doctors with an online pharmacy, streamlining the prescription filling procedure and providing integrated delivery.

Both of these ideas, would have been considered but not implemented before the pandemic. However, with the urgent need to adapt to the constraints of the new environment, both initiatives were accelerated and implemented, ultimately creating significant value for customers.

Building new capabilities

As a financial group, we have begun to deploy artificial intelligence and machine-learning enabled solutions to enhance our customers’ experiences and drive key business outcomes. At Guardian, we are leveraging artificial intelligence tools to mitigate claims fraud and identify measures to reduce claims costs. At National Commercial Bank Jamaica Limited, our WhatsApp chatbot, Simone, has assisted over 100,000 customers with sales and service transactions since its inception in 2021.

Through the launch of our fintech solution, we have leveraged capabilities such as cloud technology and marketing automation. In addition, we continue to invest in recruiting and developing talent in advanced analytics, software engineering, user experience design and cloud engineering, among other next generation capabilities.

Focusing on our people

In the same way that the pandemic reminded us to stay close to our loved ones, we continue to stay close to our customers and employees. Without our team and our customers, we would be unable to deliver desired returns to our shareholders.

Our focus on organisation health continues, as well as our investments in building the capabilities and supporting the engagement of our team members.

With respect to our customers, we continue to listen and respond to feedback.

At Guardian Group, our One Guardian Digital Platform for customers unifies all our Trinidad and Tobago business product lines delivering an omnichannel experience for our customers across web, phone, walk-in and text messages. Key features include quick quotes, online payments, client portfolio view across insurance and investment products, a health e-card and an artificial intelligence bot built into the platform for real-time customer queries that are connected to our Customer Service for real-time support.

Based on the feedback of several of our stakeholders, we have developed new ways of making banking, investing and overall wealth building easier for our customers and business partners. We launched NCB Assist Biz which is an automated self-managed solution for business customers to submit and track the fulfilment of service requests/ resolution of complaints.

We also launched the NCB Capital Markets Limted (NCBCM) mobile app, NCBCM Wealth Connect, which allows customers to view their portfolio balances, transaction history, and stock market data from the Jamaica Stock Exchange. It also allows them to execute unit trust and equity trades and make transfers between their National Commercial Bank Jamaica Limited (NCBJ) and NCBCM accounts.

All these solutions were guided by customer feedback. To get continuous input from our customers, versus relying exclusively on semiannual surveys, we leverage our WhatsApp chatbot to get feedback from customers on their experiences with us across a number of customer journeys and interactions.

Strengthening resilience

This year, we commemorate a significant milestone for our Group, whose roots date back 185 years to 1837, the year the Colonial Bank of London, England, opened its doors on Harbour Street in Kingston, Jamaica. Throughout this 185- year history, the organisation has overcome many challenges and so our resilience continues to be a strength. But like any muscle, it weakens if you stop working on it and it gets stronger if you continue to work on it and challenge yourself to take on more. We have invested in developing the resilience of our team members and the resilience of our organisation.

We have invested in a series of wellness activities, and skills-based workshops and trainings that equip our employees with relevant skills for the future. We have expanded our leadership development programmes, many of which equip our managers and senior leaders with skills to lead in uncertainty. Our hybrid work model has facilitated operational resilience and greater workforce productivity and flexibility.

As an organisation, NCB Financial Group maintains strong capital positions across its Group companies. The Group’s liquidity positions are robust and supports its resilience to market shocks. In continuance of the strategy to grow liquidity buffers, NCBJ successfully raised US$300 million in August 2022 via a Merchant Voucher Securitisation transaction in the international private placement markets. NCBFG continues to have access to funding in the international markets despite market volatility. The resilience of our Merchant Acquiring and Payments franchises led to the following Fitch rating upgrades in June 2022:

„Merchant Voucher Receivables programme to ‘BBB-’ from ‘BB+’ (Investment Grade) with stable outlook

Diversified Payment Rights programme to ‘BB+’, from ‘BB’ with stable outlook

Our shareholders can rest assured that we are taking full advantage of this moment in history. It is within this context that I affirm that the NCB Financial Group remains focused and committed to its aspiration of becoming a world-class Caribbean financial ecosystem and its purpose of Empowering People. Unlocking Dreams. Building Communities. I am grateful for each team member, customer, supplier, partner and shareholder who continues to be a part of our story and our journey.

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Expressed in Jamaican dollars unless otherwise indicated.

NCB Financial Group 2022 Annual Report (26)

Assets

NCB Financial Group 2022 Annual Report (27)

Equity attributable to stockholders of the parent

NCB Financial Group 2022 Annual Report (28)

Gross Revenues

NCB Financial Group 2022 Annual Report (29)

Net Loans

NCB Financial Group 2022 Annual Report (30)

Investment Securities

NCB Financial Group 2022 Annual Report (31)

Customer Deposits

NCB Financial Group 2022 Annual Report (32)

Liabilities under annuity and insurance contracts

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Net revenues from banking & investment activities

NCB Financial Group 2022 Annual Report (34)

Net revenue from insurance activities

Revenues & Total Assets By Geographical Segments

NCB Financial Group 2022 Annual Report (35)NCB Financial Group 2022 Annual Report (36)

NCB Financial Group 2022 Annual Report (37)NCB Financial Group 2022 Annual Report (38)

Jamaica

Trinidad & Tobago

Dutch Antilles

Bermuda

Other

NCB Financial Group 2022 Annual Report (39)

NCB Financial Group 2022 Annual Report (40)

NCB Financial Group 2022 Annual Report (41)

NCB Financial Group 2022 Annual Report (42)

NCB Financial Group 2022 Annual Report (43)

NCB Financial Group 2022 Annual Report (44)

Sandre Malcolm

Managing Director at
Campus Elite & Lynk Small
Business Customer

Sandre, the young Managing Director of the creative marketing and promotions firm Campus Elite is a graduate of the University of the West Indies (Mona) who now hires current students at the university as part of his workforce. His small business no only promotes Lynk, TFOB (2021) Limited's digital wallet but is a Link customer. Sandre pays his young team members - some of whom are unbanked, all of whom have smartphones - with Lynk and is impressed by how they use it, not just to send and receive money, but as a budget management tool.

Accusantium Eius Soluta

Consectetur Adipisicing Elit

Beatae Doloribu

Accusantium Eius Soluta

Consectetur Adipisicing Elit

Beatae Doloribu

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I'm an expert in the field of financial services and corporate communications, with a deep understanding of the content you've shared. My knowledge extends to various aspects of the financial industry, including banking, investments, insurance, and corporate governance.

In the provided article, NCB Financial Group Limited (NCBFG) is discussed, and several key concepts are highlighted:

  1. Overview of NCBFG:

    • NCBFG is described as remaining resilient during a historic period of global turmoil.
    • The organization is committed to empowering people, unlocking dreams, and building communities.
    • It has a history dating back 185 years, showcasing a track record of facing and overcoming challenges.
  2. Business Segments:

    • The article mentions three entities within NCBFG: Clarien Group, Guardian Holdings Limited, and NCB Entities.
    • Clarien Group provides banking services in Bermuda.
    • Guardian Holdings Limited is a parent company providing life, health, property, and casualty insurance across the Caribbean.
    • NCB Entities offer a range of financial products and services primarily in Jamaica, the Cayman Islands, Barbados, and Trinidad and Tobago.
  3. Leadership Messages:

    • The article includes messages from Hon. Michael Lee-Chin (Chairman) and Hon. Patrick Hylton (President and Group CEO).
    • The messages emphasize the company's commitment to its purpose, resilience, and its aspiration to become a world-class Caribbean financial ecosystem.
  4. Financial Performance and Milestones:

    • The financial performance of NCB Financial Group is discussed, emphasizing its strength and innovation.
    • The company has evolved into a regional financial conglomerate present in over 21 territories.
    • Milestones such as the 185-year anniversary and 60 years of independence for Jamaica and Trinidad and Tobago are highlighted.
  5. Community Impact and Corporate Social Responsibility:

    • The article discusses NCBFG's impact on wealth creation for shareholders, clients, and the countries it operates in.
    • Initiatives such as the Morant Bay Urban Centre project and philanthropy efforts are mentioned.
    • The company emphasizes its role as a taxpayer, contributing to government tax revenue.
  6. Innovation and Adaptation:

    • NCBFG demonstrates a focus on innovation and adaptation to changing circumstances.
    • Initiatives like the introduction of Lynk, a digital wallet, and collaborations in e-pharmacy services showcase the company's response to evolving customer needs.
    • The use of artificial intelligence and machine learning is highlighted for improving customer experiences.
  7. Resilience and Future Focus:

    • NCBFG emphasizes its resilience, both in terms of organizational and employee well-being.
    • The company has invested in wellness activities, leadership development, and a hybrid work model.
    • Future plans include a focus on becoming a world-class Caribbean financial ecosystem.
  8. Geographical Segments and Financial Metrics:

    • The article provides financial metrics such as assets, equity, revenues, net loans, and liabilities, broken down by geographical segments like Jamaica, Trinidad & Tobago, Dutch Antilles, Bermuda, and others.
  9. Case Study:

    • A case study featuring Sandre Malcolm, Managing Director of Campus Elite, highlights the practical use of Lynk for small business customers.

This comprehensive overview showcases the company's resilience, commitment to its purpose, and strategic initiatives for growth and innovation in the dynamic financial landscape.

NCB Financial Group 2022 Annual Report (2024)
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