Local Business

Clarien profits surge to $7.3m

  • Clarien Bank: profits soared in the first nine months of last year (File photograph)

Clarien Bank Ltd announced a net profit of $7.3 million for the first nine months of last year.

In a statement the bank said the profit was 126 per cent up on the previous 12 months.

Clarien has changed its financial reporting date to September 30 to align with that of its majority shareholder, NCB Financial Group, so the nine-month figures for 2018 are compared with the calendar year 2017.

Earnings per share for the nine months were $1.47, up from 78 cents in 2017, while Clarien’s efficiency ratio, its overhead expressed as a percentage of revenue, improved to 77.9 per cent from 82.4 per cent.

In December 2017, NCBFG acquired a 50.1 per cent equity stake in Clarien Group Ltd, the bank’s parent company, while Edmund Gibbons Ltd retains 31.98 per cent and Portland Private Equity retained 17.92 per cent. Both NCBFG and Portland are controlled by Jamaican-born billionaire Michael Lee-Chin.

Clarien stated: “The integration and consolidation process with National Commercial Bank Jamaica, a wholly owned subsidiary of NCBFG, which started in the early part of 2018, has already achieved improved cost and operational efficiencies.

“This process will continue throughout 2019 and will further strengthen the bank’s core infrastructure and operations to support growth and long-term sustainability.”

Clarien added that it was encouraged by the reduction in non-performing loans — being loans past due by 90 days or more, plus impaired loans — since 2015.

Ian Truran, the bank’s chief executive officer, said: “The outlook for Clarien Bank is extremely positive. The consolidation of our partnership with NCB continues to present opportunities for revenue growth and optimised performance as we pursue our vision of building a world-class digital client experience, accelerating regional expansion and reinventing our core business.

“Our partnership is focused on adding deeper value in wealth and asset management, corporate banking, treasury and back office integration to drive growth, efficiency and greater customer satisfaction that will strengthen the reputation of both companies as world-class financial institutions.”

Last month NCBFG and its subsidiaries, including Clarien Group, announced record net profits of $28.6 billion Jamaican ($215 million) for the financial year ended September 30, 2018, compared to $19 billion Jamaican ($143 million) recorded in 2016-17.