When it comes to finance and transformational business strategies, there are few stories as captivating as the one of National Commercial Bank (NCB) Financial Group under the tutelage of Michael Lee-Chin. Over time, has risen from a modest financial institution to become Jamaica’s largest bank, a success that is largely accredited to Lee-Chin’s vision and leadership.
In its latest financial year, NCB Financial had significant one-time expenses amounting to around $12 billion. Interim CEO Robert Almedia reported that these were due to severance packages, retrenchments, and other non-recurring costs. Nonetheless, despite these costs, NCB Financial still managed to record a profit of $7.6 billion for shareholders during the year ended September 2023. This figure is down from last year’s $24 billion however it demonstrates the bank’s resilience in relation to budgetary strains.
Lee-Chin has been prominent in the story of NCB Financial Group as its Chairman and controlling owner with his 51-percent stake through AIC Barbados. Lee-Chin’s relationship with NCB started when he acquired 75 percent of the shares in the late 1990s-early 2000s. Thus, under his management, the bank’s net income increased from a mere US$6 million to a notable US$100 million.
This was a game-changing year for NCB and Lee-Chin. The company experienced a massive exit of senior executive officers and some other long-serving managers which led to Michael Lee-Chin becoming more involved in the running of affairs within the organization. This was one part of a broader plan that would see it reduce expenditure while also making new plans for its future direction.
In such important corporate activities, Lee Chin had an interesting stock market move. The financial sectors were buzzing about Lee-Chin who sold over 22 million shares of NCBFG. But this sale did not mean much because it was only less than one percent of the total number of shares held by NCBFG and was something he had planned so as to fit well into his diversified investment objectives. It is worth noting that selling his shares did not change his commitment to NCB where he still is among major shareholders there.
Lee-Chin’s choices have a wider outcome than simply reflecting in the financials. It has been an indication of strategic imagination and good financial administration at NCB under his watch. The approach he took to address the challenges of the year and the strategic equity placement demonstrates a clear understanding of the banking sector and commitment to NCB being a leading financial institution in Jamaica, the region, and beyond.
Coming into this new fiscal year, NCB is on a firm footing with prospects of lower operating costs and better operational efficiencies. These developments are vital for the bank’s long term strategy especially due to its existing presence in Jamaica, Caymans, and UK.
