THE NCB Financial Group said it has no plans to expand in Trinidad and Tobago, preferring instead to remain a “niche player” in that country. The NCB Financial Group operates NCB Merchant Bank (TT) Limited, with a sole branch in Port-of-Spain.

“It is not our intention to become a First Citizens Bank or Republic Bank,” Steven Gooden, CEO of NCB Capital Markets, told reporters in a media session which followed NCB Financial Group’s quarterly investor briefing last Thursday.

Gooden’s reference to First Citizens and Republic banks — among the largest in Trinidad and Tobago — was in response to a query about whether NCB Merchant Bank is planning on expanding in the twin-island republic.

“In terms of the size of the banking sector, it is fairly small and we are basically a niche player in the market,” Gooden pointed out. NCB Merchant Bank “has less than one per cent of banking in Trinidad and Tobago”, according to data from that country’s Finance Minister Colm Imbert in a virtual press conference on August 9, 2023.

“We [are] keeping it very nimble, leveraging the capabilities and the infrastructure that we have, not only in Jamaica but throughout the Caribbean,” Gooden continued as he outlined how NCB Merchant Bank (TT) will operate instead of opening more locations in that country.

“So although we are small in size we are fairly impactful in terms of what we do in the space, and we expect that to continue.”

Gooden listed three areas of focus for NCB Merchant Bank — arranging financing transactions for the Government of Trinidad and Tobago and corporates; working with SME’s, from which he said a few transactions should come to market in the next few months; and focusing on synergies here in Jamaica and the Trinidad market.

No concern

Imbert was pointing out the size of NCB Merchant Bank (TT) to debunk what he called “arrant nonsense” from Kamla Persad-Bissessar, Opposition leader in Trinidad and Tobago, who claimed issues at NCB Financial Group could destabilise that country’s ecouomy.

“Clearly the very frightening news of Mr Lee-Chin’s recent financial manoeuvres are cause for concern. This seriously makes the public worried about the financial health of both NCB Global and Guardian Holdings Ltd,” said Persad-Bissessar recently.

She continued: “There can be a cascading failure within our financial system due to the numerous interconnecting linkages among NCB Financial Group, GHL [Guardidan Holdings Limited], local banks, and financial institutions within our country — resulting in a severe economic disaster for citizens.”

Persad-Bissessar claimed that issues at NCB Financial Group could spill over into Guardian Holdings Limited in which it is the majority shareholder, which could be a significant negative event for Trinidad and Tobago’s economy.

Those claims were already rubbished by Imbert during his virtual press briefing last Wednesday. On Thursday, Robert Almeida, chairman of Guardian Holdings Limited and interim CEO of NCB Financial Group, stressed the entities remain “liquid, profitable and well-capitalised”.

“Among the companies listed on the Jamaican and Trinidadian stock exchanges, NCB Financial Group and Guardian continue to be among the most profitable and well-capitalised groups,” Almeida continued.

He said NCB Financial Group, including its operating subsidiaries, operate in a highly regulated industry, stressing this fact should give people confidence.

“[They] are highly regulated [entities] with very competent regulators, and each entity meets or exceeds the regulatory requirements of those regulators,” he said.

Asked if the insurer is worried that Persad-Bissessar’s comments could have a negative impact on its operations, Ian Chinapoo, CEO of Guardian Holdings Limited, had this to say: “We have not experienced any concerns in this regards, we really don’t.”

The GHL CEO assured there is nothing to be feared because the entity is well-run.

“We have been prudent, and we are prudent risk managers. We will continue to engage with all of our stakeholders — including our regulators — confidently and transparently in the normal course of our business activities and full disclosure in our reporting so really, no concerns in that regard,” Chinapoo added.