MICHAEL Lee-Chin has dismissed calls for him to temporarily step aside as chairman of NCB Financial Group (NCBFG), pushing back against concerns that debt repayment issues at his private holding companies are negatively impacting the bank’s share price even as the institution posts strong operational performance.

The billionaire contends NCBFG’s 57 per cent stock decline over the last two years since he returned a month early from his leave of absence in July 2023 stems from market manipulation rather than fundamentals. The share price at $28.63 last Thursday was trading at 38 per cent of the June 30, 2025 book value per share of $73.43. It was the lowest price NCBFG has traded since the financial holding company replaced National Commercial Bank Jamaica Limited as the listed entity on the Jamaica Stock Exchange on March 22, 2017. Since Friday, however, the price has recovered 37.5 per cent, closing on Tuesday at $39.36.

Yet, the price recovery in the last few days is not the end of issues facing Lee-Chin and especially his holding companies AIC (Barbados), AIC (Global), Portland Holdings and Specialty Coffee.

In a wide-ranging Jamaica Observer interview, the NCBFG chairman addressed the challenges facing his personal holding companies. He discussed whether these issues are negatively impacting NCBFG itself and shared his perspective on the risk of the bank being taken over by bondholders. Some analysts and investors point to the fact that Lee-Chin has pledged most of his NCBFG shares as collateral for bonds issued by his private holding companies as a significant contagion risk. This linkage is widely seen as the primary factor driving market anxiety and demands for his temporary departure as chairman.

The Business Observer also inquired if these circumstances might lead him to step aside temporarily — as he did for 54 days between May 24, 2023, and July 17, 2023 — until the issues facing his holding companies are resolved. The aim would be to prevent any contagion risk, where problems from unrelated companies sharing a common majority shareholder could cast a shadow over the bank.

“I don’t know if me stepping aside would change anything. It would be exactly what the manipulators would want. I would be playing right into their hands,” Lee-Chin replied.

Rumours emerged recently that the Bank of Jamaica (BOJ) was concerned about the development and the likely impact it could have on the systematically important financial institution, and whether it has used moral suasion to request Lee-Chin to step down as chairman of NCBFG to minimise contagion risk.

The BOJ, Jamaica’s financial regulator, issued a statement addressing the specific question of its own regulatory stance:

“Bank of Jamaica acknowledges your query about purported developments in the leadership of a licensee of the Bank. Bank of Jamaica at this time has not nor is requesting any leadership change at any licensee of the central bank.”

It added that as a central principle and global best practice governing its regulatory and supervisory responsibilities, it does not normally comment on matters concerning its supervisory functions in relation to specific licensees.

“Should there be significant regulatory action or the need to communicate major management change in relation to any of its licensees, Bank of Jamaica, through its normal information channels, issues appropriate and timely public advisories to consumers, investors and other stakeholders in the financial system,” the statement concluded.

Lee-Chin himself however pointed to the conglomerate’s recently published financial statements to strengthen his argument about stock price manipulation. These showed a 68 per cent year-over-year surge in net profit to $30.5 billion for the nine months ending June 2025, though this included a one-off gain of $15.1 billion from the sale of a subsidiary in January. The statements also reported record stockholder equity of $240 billion. Lee-Chin questioned the divergence between this performance and the company’s stock price. NCBFG’s financial year ends on September 30 and the new financial year starts on October 1.

“If your net worth, your equity, your book value, has increased by 21 per cent, how is it possible for the stock price to go down from $90 to $28? That’s down about 69 per cent…The stock is selling at 38 per cent of book value. You can buy a dollar for 38 cents. Does that make sense?” he asked. The stock was last at $90 in early October 2022.

Lee-Chin in NCBFG’s investor briefing on Friday said the situation was due to the market inefficiencies.

“The unfortunate thing about the Jamaica Stock Exchange is that it is an illiquid market, and people can play games with the stock, which is exactly what is happening. To what end, I can only speculate….but we will see eventually.” He added that those manipulating NCBFG shares “obviously has a longer-term play in mind”, though he stopped short of expounding, electing instead to saying that if Jamaica intends to be a major hub for financial services, the country has to ensure that the stock market is fair to buyers and sellers.

And though he stayed away from identifying who he thinks is manipulating the stock price, he said there are certain articles in the media that he said showed “a consistency of behaviour” in how they report on the entities he is associated with.

“I would like to say that there is a lot of sensationalism swirling around in the marketplace, primarily caused by mischievous, mysterious, and irresponsible journalism,” he added.

“That is not what journalism should be. It should be devoid of editorial opinions; it should just report the facts as they are.”

“When there is a consistency of behaviour, and every article that is written about AIC, NCB, and Portland… all have a certain resemblance, it is to destabilise those entities. That is not responsible. I just want to point that out, I don’t want to call any names. But, there has been a historical ‘hate on’,” he said, without substantiating the claim.

Still, Lee-Chin’s grip on NCBFG faces a decisive test this week, with bondholders voting on Monday whether to defer US$364 million in debt repayments until 2027. Failure to secure approval risks triggering enforcement of pledged collateral: 1.06 billion NCBFG shares or about 41 per cent of total equity, now valued at US$164 million less than the debt they secure. NCBFG acknowledges in bond documents that such a scenario could see its chairman lose control.

Lee-Chin holds about 52.15 per cent of NCBFG shares, mainly through AIC (Barbados) and the 1.06 billion shares pledged as security for the bonds in his holding companies, represent approximately 97 per cent of his holdings, equivalent to 50.5 per cent of NCBFG shares pledged as security.

“As of the date of this offering memorandum, certain of these bonds are delinquent with respect to principal and interest payments,” NCBFG pointed out in filings accompanying its own bond issue recently.

It also noted that “in the event the enforcement of the pledge of the shares results in an agreement for any person or group to acquire beneficial ownership of 20 per cent or more of our outstanding shares, such agreement would be subject to central bank approval,” but stressed that “a new substantial or controlling shareholder may also have different strategic priorities or operational approaches that could adversely affect our business, results of operations, and financial condition.”

One bondholder told Business Observer he is hoping the majority of creditors would vote for the resolution to bring some “stability to situation and remove the risk of default and a takeover of the company by creditors.

Asked initially if he is worried he could lose control of NCBFG, Lee-Chin was defiant.

“So? What does that have to do with NCB? They would just have a different owner, simple.”

“If the bank is doing well, it doesn’t matter who owns it, does it?” he continued rhetorically before hinting at a preference that such a scenario does not play out.

“Every company needs an owner, someone who has an ownership attitude and who is going to make sure they do everything possible to make the company safe, sound, and profitable. This is different from when a company is run by people who really don’t own it.”

To avoid that scenario, Lee-Chin is hoping bondholders agree to extend the maturities until December 2027 with a debt restructuring proposal relying partly on rising NCBFG dividend flows, with projections indicating annual increases: $2.52 billion (US$15.65 million) in 2025, $4.48 billion (US$27.83 million) in 2026, and $6 billion (US$37.27 million) in 2027. The company declared a 50 cents dividend last week which will see it paying out a total of $1.3 billion with just over half that should be going to Lee-Chin himself, instead going to the noteholders. NCBFG has also indicated that it is pushing to get to a 50 per cent dividend payout ratio by 2027 up from projected 31.5 per cent in 2025 to make the proposed repayments. This implies that within a year and a half it will be paying $6 per share for the year up from $2.52 cents in 2025. Bondholders told Business Observer that while they acknowledge the proposal, “it doesn’t address the repayment of principals” and is only geared to meeting outstanding and future coupons.

The Business Observer also asked Lee-Chin if he is worried about talks that he is broke, pointing to various social media content depicting that case.

“I’ve seen all of that foolishness, but what can I say,” he replied. “Remember, Michael Lee-Chin came to Canada as an immigrant with nothing. I built the most successful mutual fund management company in Canada, taking it from CAD$800,000 in assets under management to CAD$15 billion in 12 years. That gave me the opportunity to buy the National Commercial Bank. Where did I get US$120 million from to buy the bank? Obviously, I must have been very successful. I’ve lived my life in a way that if you were to Google me, you’d see only positive things. I’ve been benevolent and philanthropic.”

He indicated that he has never had any problems with owning or operating any entity and doesn’t anticipate any issues now.

For shareholders who are worried about the price of the stock, he had these words: “There’s a saying, the Chinese definition of the word crisis is two characters: danger plus opportunity. Everybody’s looking at the danger, but the opportunity is to buy NCB shares cheap. If you can buy a dollar for 38 cents, why wouldn’t you be lined up around the block to buy it every day? Especially when you know the bank is doing well. So the stock is cheap, what do you do? Go buy it.”

He continued his invite to shareholders to buy into NCBFG, calling on the words of billionaire philantropist Warren Buffett: “Be fearful when others are greedy, and greedy when others are fearful.”

LEE-CHIN…I don’t know if me stepping aside would change anything. It would be exactly what the manipulators would want. I would be playing right into their hands.

NCB Financial Group headquarters in Kingston, Jamaica.