Hylton sets sight on credit market
Published:Sunday | February 26, 2012 | 12:00 AM
National Commercial Bank (NCB) Jamaica will be targeting new business by going after the consumers of credit - whether through loans or credit card usage.
NCB group managing director Patrick Hylton said he would be putting the bank sales team to work harder at securing market share.
Jamaica's commercial banks have a combined loan portfolio of J$246 billion at the last release of industry data by the central bank at September 2011.
The NCB banking group has the second-largest loan portfolio at J$92 billion; rival Scotia Group Jamaica is just shy of J$100 billion.
Hylton said Jamaica's credit market offers opportunity for growth.
"In Jamaica, the penetration of loans and credit cards from traditional financial institutions is very low relative to what we see in countries across Latin America and the Caribbean," he said at the bank's annual general meeting in Kingston on Thursday.
"It is our goal to to reshape the nature of the credit market over the next few years to enhance the lives of ordinary Jamaicans," he told shareholders at the annual general meeting.
Hylton did not offer comparative data. Inside Jamaica, loans equate to 64 per cent of the seven banks' deposit base, and 42 per cent of their asset base.
most-profitable company
NCB is the most-profitable stock market company in Jamaica. It reported another year of record profit J$13 billion in 2011.
NCB is also the country's largest bank by assets, J$359 billion.
Shareholders, however, are not entirely satisfied with their returns from the bank.
"How come in a year where you made super profits the dividend we receive has declined," demanded Orette Staples.
Another shareholder called for the bank's dividend policy to be more predictable, and consistent, a matter Hylton said he would take into consideration.
NCB has a dividend payout rate of a maximum of 50 per cent of the ordinary realised profit earned each year which is applied after taking account of all transfers.
But in the event that the payout is less than 50 per cent in any one year, the board of directors reserves the right to increase future distributions proportionately.
For calendar 2011, payouts amounted to J$1.25 per share or J$3 billion; in calendar 2010 payouts totalled J$1.25 per share or J$3.6 billion.
The bank still plans to cross-list on the New York Stock Exchange and has already selected J.P. Morgan as the investment bank for the initial public offering of the company's shares.
Hylton said he was unable to give any update on the listing as they were still in the 'quiet period' under US law.
The NCB stock already trades on the Jamaica and Trinidad exchanges.