07Jan 2019

Clarien Bank Limited (“Clarien”), a wholly-owned subsidiary of Clarien Group Limited (“CGL”) today announced a net profit for 9 months ended September 30, 2018 of $7.3 million – a 126% increase over the previous 12 months.

The continuing improvement in the Bank’s financial performance was driven by Clarien’s strategic partnership with majority shareholder NCB Financial Group (“NCBFG”). In December 2017, NCBFG acquired a 50.1% equity stake in CGL, while Edmund Gibbons Limited retains 31.98% and Portland Private Equity retained 17.92%.

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.

During the past year, Clarien has been focused on initiatives that draw on the best practices and processes of both organisations in order to meet changing customer expectations and enhance the customer experience.

Clarien continued to make significant investments in expanding its product offerings, technology, risk and operational infrastructures and achieved the following milestones:

  • The successful launch of iBank mobile and digital authenticator
  • The continued client growth of iTrade, the Clarien brokerage platform
  • Digitisation of client on-boarding workflow
  • The introduction of competitive interest rates for long-term savings products
  • Enhancements to the card fraud monitoring system, including 3D Secure, an added layer of protection for online transactions
  • Increased investment in employees through training and education

Clarien has changed its financial reporting date to September 30 to align with that of our majority shareholder, NCBFG. Last month NCBFG and its subsidiaries, including CGL, announced record net profits of J$28.6 billion (US$215 million*) for the financial year ended September 30, 2018, compared to J$19 billion (US$143 million*) recorded in 2016-17.

Clarien Bank financial highlights:

Nine months
ended Sept. 30, 2018
Twelve months
ended Dec. 31, 2017
Profitability
Return on equity (annualised) 8.27% 3.39%
Efficiency Ratio 77.87% 82.38%
Net Interest Margin 3.67% 3.68%
Return on Assets (annualised) 0.79% 0.32%
Earnings per share $1.47 $0.78
Capital
CET1 Capital Ratio 19.25% 18.05%
Total Capital Ratio 19.43% 19.06%
Leverage Ratio 9.06% 8.73%

Clarien continues to be encouraged by the reduction in Non-Performing Loans (NPLs) – being loans past due by 90 days or more, plus impaired loans – since 2015.

A copy of the Bank’s Consolidated Financial Statements for the 9 months ended September 30, 2018 can be downloaded from this link.

Ian Truran, Clarien Chief Executive Officer, commented: “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.”

Note: * – Converted at exchange rate of J$133 per US$ (as at September 30, 2018)