NCB Financial fails to offload two bank subsidiaries
Published:Wednesday | May 14, 2025 | 12:06 AM
NCB Financial Group Limited, NCBFG, has failed to finalise deals to sell two banking subsidiaries.
However, the group posted higher profit for its second-quarter ending March 2025, driven by the sale of a third business by its insurance subsidiary.
The share purchase agreement with Barbados-based Cornerstone Financial Holdings Limited, which aimed to sell NCBFG’s 30.2 per cent controlling stake in Bermuda-based Clarien Group, expired on May 8, 2025, without an extension.
“Clarien remains under NCBFG’s ownership, marking a setback in the group’s plans to streamline its operations,” NCB Financial said in its quarterly report.
Similarly, the sale of NCB Cayman Limited to London-based Berkeley Financial Holdings was cancelled in January 2025 after both parties failed to meet completion deadlines.
“The termination of the agreement between NCBJ and Berkeley arises from the agreement not reaching completion within the agreed time and in the specific manner contemplated by the parties. The intention is, therefore, to explore alternatives at this juncture,” said NCB Financial.
“NCB Cayman remains a wholly-owned subsidiary of NCBFG domiciled in The Cayman Islands,” it said.
NCBFG holds $2.3 trillion in assets. The failed deals would have provided additional liquidity and contribute to its 10 per cent capital buffer.
“Our regulated entities consistently exceed capital and liquidity regulatory benchmarks, underscoring our capability to foster growth, manage market volatility, and maintain financial resilience,” said CEO Robert Almeida.
Meanwhile, insurance subsidiary Guardian Holdings Limited completed the sale of Thoma Exploitatie BV, an insurance brokerage business based in the Netherlands.
“This divestment supports Guardian Group’s strategy to concentrate on core markets and business platforms with the highest potential for future growth,” Almeida said.
The sale contributed $15.1 billion to group profit for the March quarter, accounting for nearly 80 per cent of the reported $17 billion in earnings for the period. Group net profit rose 129 per cent year-on-year mainly due to the sale of Thoma Exploitatie. Net profit attributable to stockholders also doubled to $10.71 billion.
NCBFG’s net operating income for the quarter climbed to $42.2 billion, up from $30.7 billion a year earlier. The increase was driven by investment gains and core banking activities despite insurance expenses and credit-impairment losses.
Half-year group profit reached $22.2 billion, reflecting a 108 per cent increase compared to the previous year’s $10.69 billion. Profit for shareholders amounted to $13.3 billion and $6.9 billion, respectively.
Looking ahead, NCBFG is cautiously optimistic about business amid global economic challenges, including a declining United States economy and new trade tariffs, but sees opportunities for growth.
“NCBFG remains focused on enhancing revenue generation through strategic initiatives, including the expansion of our insurance portfolio, interest-earning assets, together with growth in card transaction volumes for increased interest, net fee, and commission income and insurance service revenues,” Almeida said.