National Commercial Bank Financial Group (NCBFG) records a 25% dip in net profits as the company’s financial year came to a close on September 30. This decrease in net profits could be caused by a myriad of factors: Covid-19, global forces, etc.
Covid-19 restrictions seem to be one of the main reasons for such a dip in its net profit. It was even stated in the company’s notes accompanying its financials that was released to the stock exchange. This goes to show that large multinational companies are not somehow immune to the impact of the pandemic.
Within NCBFG, there were fractions of the business that seems to drag down the overall performance of the organization. One of these is the insurance sector which saw a 29% decrease in contribution or a $9.5 billion decrease from the prior year. One of the main causes is the Covid-19 restrictions being imposed in Trinidad and Tobago during the financial year.
Another sector that never beat analyst estimates was the banking and investment segment. Even though it has seen an overall improvement, it’s still some way off their initial estimate. Its cost-to-income ratio increased to 76.19%, up from 68.48% from the prior year.
There was a 16% increase in operating expenses over the prior year which led to an overall total of $94.9 billion in operation cost. They made emphasis on the fact they are investing heavily in technology to improve their overall service.
It’s been a bumpy ride for NCBFG, since the start of the year the company has lost 16% of its value. Their overall market capitalization was valued at $296 billion. This is quite some distance from their prior high a year ago at $353 billion. Overall expect NCBFG to recover as the economy slowly improves over the upcoming years.
