RATING DRIVERS
Supporting Factors
- Dominant regional financial services player, with strong presence in the Jamaica banking and securities industry and regional insurance industry
- Comfortable capitalization reflected in good coverage of total assets
- Sustained financial performance underpinned by diverse and resilient income streams
- Growing assets base, though challenged by some deterioration in asset quality
- Robust risk infrastructure and focus on technology supports strategic planning and the achievement of business objectives
Constraining Factors
- Deteriorating economic conditions in operating territories could constrain growth
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
- Improvement in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to an improved sovereign risk profile
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- Deterioration of any of the subsidiaries’ CAR below the country specific regulatory requirements
- Deterioration in the credit ratings of the Government of Jamaica (GoJ) and/or the Government of the Republic of Trinidad and Tobago (GoRTT) leading to a worsened sovereign risk profile
COMPANY BACKGROUND
NCB Financial Group Limited (NCBFG or the Group), was incorporated in April 2016 and is a financial holding company for National Commercial Bank Jamaica Limited (NCBJ or the Bank) and to facilitate the Group’s regional expansion initiatives. NCBFG currently comprises NCBJ and NCB Global Holdings (NCBGH) Limited as two wholly owned subsidiaries, as well as Clarien Group, a Bermuda-based banking, investment, and trust services financial group. NCBFG acquired 50.1% of Clarien in December 2017[1] and its subsidiary, NCBGH, acquired the majority shareholding (61.77%) of Guardian Holdings Limited (GHL or the Guardian Group) and its subsidiaries.
NCBFG is listed on the Jamaica and Trinidad and Tobago stock exchanges and its top 3 shareholders as at August 31, 2021 are AIC (Barbados) Limited (52.11%), MF&G Asset Management (5.05%) and Sagicor PIF Equity Fund (3.21%). The remaining 41.9% of the shares are distributed amongst other individual and institutional shareholders. NCBJ, the main operating subsidiary, currently has 8 subsidiaries that operate in the commercial banking and securities industries. The Bank offers an extensive range of products and services including commercial banking, stock brokerage, wealth and asset management, and pension fund management and administration.
[1] The other shareholders of Clarien include Edmund Gibbons Limited and Portland Private Equity Limited (PPE)
Analytical Contacts:
Khadine Tavares
Tel: 1-876-618-8800 Ext. 9813
E-mail: [email protected]
Keith Hamlet
Tel: 1-868-627-8879 Ext. 229
E-mail: [email protected]
Website: www.caricris.com
Email: [email protected]
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