RATING ACTION:
On December 5, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to National Commercial Bank Jamaica Limited (NCBJ or the Bank) at CariA (Foreign Currency Rating) and CariA+ (Local Currency Rating) on the regional rating scale, and jmAA+ (Local Currency Rating) on the Jamaica national scale. A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the Ratings and/ or Outlook include:
- Improvement in the Government of Jamaica’s credit rating, leading to an improved credit risk profile of NCBJ
- Retail deposits ≥ 40% of funding base
- Return on Equity (ROE) > 20% sustained for 2 consecutive financial years
- Cost to income ≤ 50% for 2 consecutive financial years
Factors that could, individually or collectively, lead to a lowering of the Ratings and/ or Outlook include:
- The occurrence of any factors that may contribute to the deterioration of the Capital Adequacy Ratio (CAR) below the 12.5% minimum requirement for the Bank
- Deterioration in gross Non-Performing Loans (NPLs) to gross loans to 7.5% or more, leading to reduced earnings and increased provisioning, thereby affecting profitability
- Loans to Deposits ratio ≥ 90% for 2 consecutive financial years
- ROE < 8% over the next 12 months
- Cost to income ≥ 70% over the next 12 months
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Megan Dass
Mobile: 1-868-713-6863
[email protected]
www.caricris.com
[email protected]
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.