NCB Financial Group’s staff costs decreased significantly in the 2024 financial year, falling to $730.12 million from a restated $5.60 billion in 2022. This decline followed a reduction in the company’s executive roster.

The financial group’s total wages, salaries, allowances, and benefits for the latest financial year were $1.64 billion, including compensation for CEO Robert Almeida and CFO Malcolm Sadler. In comparison, the restated figure for 2022 was $5.32 billion, when Patrick Hylton was CEO and Dennis Cohen was CFO.

Separation and Termination Benefits

A $4.83-billion separation and termination benefit related to former CEO Patrick Hylton and former CFO Dennis Cohen was recorded as an expense in the 2023 financial year. This was followed by a $1.05-billion reversal in the 2024 financial year.

As part of their separation settlement, Hylton and Cohen received 51,333,333 and 25,666,667 new ordinary shares, respectively, in the 2024 financial year. The total value of these shares was $4.90 billion and was recorded in NCBFG’s shareholder equity.

Executive and other Key Management Compensation

Almeida and another executive, Bruce Bowen, received compensation packages that included newly issued shares during the year. Almeida was issued 884,934 new ordinary shares and Bowen received 196,850 new ordinary shares in the first quarter, valued at an estimated $33 million. Almeida also received 265,000 new ordinary shares on September 3, valued at an estimated $19 million.

Meanwhile, NCBFG’s key management compensation totalled $557.49 million, representing approximately a third of the holding company’s total wages. Executive directors received $206.52 million in salaries and benefits, plus $72.13 million in share benefits.

Financial Performance

NCBFG reported a standalone net profit of $11.66 billion in 2024, up 230 per cent from the prior year. The increase was largely due to the absence of one-time separation costs incurred in the previous year.

Interest expense rose 13 per cent to $9.11 billion from $8.09 billion, primarily due to higher costs associated with refinanced debt.

NCBFG’s total assets stood at $266.67 billion, with investments in subsidiaries amounting to $177.58 billion. Total liabilities decreased 12 per cent to $110.93 billion, while other borrowed funds or external debt fell 3 per cent to $90.72 billion.

Shareholders’ equity rose 10 per cent to $155.74 billion, following the injection of $2.41 billion in new capital from an additional public offering.

NCBFG reported a $1.68-billion difference in consolidated net profit between its unaudited and audited financial statements. The unaudited financials showed a consolidated net profit of $23.25 billion, while the audited figures totalled $21.57 billion.

NCBJ transferred $9.73 billion from its retained earnings reserve to its statutory/banking reserve fund, bringing the total to $17.51 billion. This exceeds NCBJ’s share capital of $16.24 billion.

As of June 30, NCBJ’s capital adequacy ratio (CAR) was 14.55 per cent, while NCBCM’s CAR was 18.37 per cent.