Table of Contents
Key Points
- NCB Financial aims to double annual profits to $50 billion.
- Cost-to-income ratio reduction from 70 percent to 50 percent is a priority.
- Michael Lee-Chin’s 65 percent stake underpins the group’s growth.
Michael Lee-Chin’s vision for NCB Financial's growth
Michael Lee-Chin, chairman of NCB Financial Group Limited and a renowned Jamaican-Canadian billionaire, is pushing an ambitious plan to double the group’s annual profits to $50 billion. Lee-Chin, who holds a controlling stake of about 48.54 percent in the company, has emphasized enhancing workforce skills as a cornerstone of this growth strategy. His stake has decreased from about 60 percent following recent share issuances and sales, including a significant transaction involving Jamaica's National Insurance Fund. Despite this, he remains a major shareholder and a driving force behind the company's continued expansion.
Speaking at the Mayberry Investor Forum hosted by Mayberry Group, Lee-Chin highlighted the need for the company’s 5,560 employees to achieve global employability standards. “If they emigrate, when they land in Timbuktu, they are employable,” he stated, referencing the workforce’s readiness to compete internationally. His remarks spoke more of his broader investment philosophy of integrating labor and capital to foster development.
Founded in 1977, NCB Financial has evolved into Jamaica’s largest financial conglomerate, managing a diverse portfolio that includes National Commercial Bank Jamaica and Guardian Holdings Limited. With a net worth estimated at over $1.2 billion, according to Forbes, Lee-Chin’s vision continues to shape the group’s growth trajectory.
Cost reduction to boost global competitiveness
Robert Almeida, NCB Financial’s CEO, outlined a critical part of the group’s plan to achieve its ambitious profit target: reducing its cost-to-income ratio from the current 70 percent to 50 percent. “We have to do it because that’s what makes us competitive with global peers,” Almeida stated. He described the task as challenging but essential for delivering stellar financial results. Reducing expenses will also drive the group’s return on capital toward 20 percent. According to Almeida, achieving this target would restore NCB Financial’s profitability to 2019 levels, when it posted $30 billion in net profit for shareholders.
For the financial year ending September 2024, the group reported a consolidated net profit of $23.3 billion, significantly below its record performance. Dan Theoc, head of investment banking at Mayberry, noted that these measures could triple NCB Financial’s share price to $150. “We’re just returning to where the institution was several years ago,” Almeida commented, reinforcing the group’s commitment to revitalizing its financial standing.
Lee-Chin’s leadership, coupled with a disciplined cost-management strategy, positions NCB Financial to achieve its profit goals while solidifying its status as a regional financial powerhouse.
