National Commercial Bank Jamaica Limited (NCB) posted a 24 per cent increase in net profit for its first quarter ended December 31, 2007, driven mainly by its retail banking division but with treasury a close second.

For the quarter, the bank recorded net profit of $1.86 billion or 76 cents per share culled from improved revenues of $5.6 billion; compared to $1.5 billion or 61 cents per share from revenues of $5.2 billion in the year prior period.

Operating revenue for the period was boosted by a 28 per cent increase in net fee and commission income, while total interest income increased by 11 per cent.

The bank is expected to pay a dividend of 15 cents per share on February 22 to shareholders on record at February 11.

NCB's loan portfolio also climbed by $4 billion in the quarter to $60 billion, but remained the second largest contributor to assets. Investment securities of $148 billion continued to claim the top spot among total revenues of $259 billion at December.

The banking group attributed the improved performance to continued focus on core business, which has resulted in higher earnings from the bank's main operating segment.

Retail banking earned $849 million on operations reflecting year-on-year growth of 115 per cent, treasury brought in $816 million and wealth management $563 million to round out the top three segments. The latter segments grew 11 per cent and 21 per cent respectively.

The bank's wealth management subsidiary, NCB Capital Markets Limited, itself reported a near $40 million decline in operating profit to $525 million - bedeviled by a $73 million decline in trading income - and flat first quarter net profit of $416.7 million compared to the $416.9 million it made at December 2006.

Main revenue earner

Corporate banking contributed another $342 million to NCB group profits, an increase of 0.9 per cent, while its insurance arm brought in $94 million, reflecting a 46 per cent decline and the only segment whose returns to the group fell in the quarter.

Retail banking continues to lead as the group's main revenue earner. The segment recorded $849 million in operating profit for the quarter under review, an increase of 115 per cent when compared to the similar period last year.

sabrina.gordon@gleanerjm.com

NCB

First quarter - Dec. 31 2007

Operating
Revenue	$5.60 billion
Net Profit	$1.86 billion
Capital base	$30.2 billion
Total Assets	$259.3 billion
Share Price	$23.30 (Feb. 5)
Market
Capitalisation	$57.5 billion