NCBFG Annual Report 2020 Web 1

Annual Report 2020
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We live in a society where
change is constant and
rapid. To succeed, we must
be willing to push the limits
and grow our business at a
rate which not only drives
high performance, but also
builds long-term endurance.
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AC C E LE R AT E
Contents
1 Vision Governance
3 Core Values
5 Brand Pillars
7 Notice of Annual General Meeting 21 Chairman’s Message

23 Board of Directors
27 Corporate Governance Statement
41 Our Policies and Practicies
Our Group at a Glance
9 Our Business in Brief

11 Our Awards and Honours
13 Performance Highlights 47 President’s Message
15 Business Highlights 50 Performance Highlights by Geographical Segments
17 10 Year Financial Statistical Review 51 Management Team
NCBFG ANNUAL REPORT 2020

For more information, visit www.myncb.com
147 Financial Statements
150 Directors’ Report

151 Independent Auditor’s Report to the Members
163 Consolidated Income Statement
164 Consolidated Statement of Comprehensive Income
165 Consolidated Statement of Financial Position
167 Consolidated Statement of Changes in Equity
168 Consolidated Statement of Cash flows
169 Statement of Comprehensive Income
170 Statement of Financial Position
171 Statement of Changes in Equity
172 Statement of Cash Flows
173 Notes to the Financial Statements
53 Management Discussion 367 Shareholdings

& Analysis
57 Executive Summary 10 Largest Shareholders

61 Financial Snapshot Stock Units by NCBFG Executives/Senior Managers
65 Operating Environment Shareholder Profile
73 Financial Performance Stock Units by Directors
91 CEO’s Message - NCBJ Stock Units by Other Executives/Senior Managers
93 CEO’s Message - Clarien
95 CEO’s Message - GHL
99 Our Business Operations 369 Corporate Directory
115 Our Business Enablers 371 Glossary
125 Risk Management and Governance Notes
131 Strategic Outlook
135 Corporate Social Responsibility Proxy Form
AC C EL ER ATE
Vision
To be the premier Caribbean financial services group

delivering superior products and services to satisfy
the needs of our customers, while developing our
employees and building the communities we serve.
1 NCBFG ANNUAL REPORT 2020

The focus is never just on the

finish-line. Victory is about designing
a journey that enables winning for
everyone who is in the race.
AC C EL ER ATE 2
Core Values
Stakeholder Value Customer Experience

We hold a deep and abiding We commit to finding new, practical
respect for each customer, every and innovative ways to make the term
colleague in our companies, and “excellent service” more relevant to
all our shareholders. each customer – every day.

The race is not just for the swift…it is

for those who take the time to build a
solid foundation, motivate employees,
delight customers as well as design
and develop the capabilities to create
winning outcomes.
People Reward & Fair Competition

Development Recognition We treat all competitors as
We commit to the relentless In our merit-based culture, noble, but we will compete
renewal of our enterprise individual reward and fairly and vigorously to win.
through the constant training recognition will be a result
of our people at all levels. of measured performance.
AC C EL ER ATE 4
Brand Pillars
Innovation Expertise
We are constantly striving to improve the Professionals within the Group possess expert
financial solutions we offer in order to meet knowledge in their respective areas of our
the changing needs of our customers. We business. Equally important, we foster superior
also drive innovation in our operations by customer relationship management skills that
using technology as a key enabler of greater engender trust and loyalty with those we serve.
efficiency and better service delivery.

The engine is a core element for participating

in any race but the drivers are responsible for
crossing the finish line. In our organisation,
innovation is the fuel that powers our engine.
We’ve spent years building on our strengths,
improving our agility and honing our skills and
expertise. We’re built to win.
Strength
Sound and prudent management are
hallmarks of sustainability for the Group. We
carry out our business within a framework
that observes proper ethical, regulatory and
financial practices, while embracing our role
as a responsible corporate citizen.
AC C EL ER ATE 6
Notice of Annual
General Meeting
NOTICE is hereby given that the Annual General Meeting
of NCB FINANCIAL GROUP LIMITED will be held at The
Atrium, 32 Trafalgar Road, Kingston 10, in the parish
of Saint Andrew, Jamaica on February 5, 2021, and
online through access information to be made available
through www.myncb.com, to start at 3:00 p.m., to
consider and if thought fit pass the following resolutions:
ORDINARY BUSINESS 3. Election of Directors
a) Article 94 of the Company’s Articles

Ordinary Resolutions of Incorporation provides that one-third
of the Board other than the Managing
Director (that is, our President and Group
1. Audited Accounts Chief Executive Officer) and Deputy
Managing Director (that is, our Group
“THAT the Audited Accounts for the year Chief Financial Officer and Deputy Chief
ended September 30, 2020 and the Executive Officer) or, if the number of
Reports of the Directors and Auditors, members of the board is not three or
circulated with the Notice convening the a multiple of three, then the number
Meeting, be and are hereby adopted.” nearest to one-third shall retire from
office at each Annual General Meeting.
The Directors retiring under this Article
2. Declaration of Dividend are Prof. Alvin Wint, CD and Mr Robert
Almeida who, being eligible, offer
“THAT the interim dividends per stock themselves for re-election.
unit of $1.00 paid in December 2019 and The proposed resolutions are therefore
$0.90 paid in March 2020 be treated on as follows:
the recommendation of the Directors as the
final dividend for the financial year ended “THAT Director PROF. ALVIN WINT,
September 30, 2020.” CD, retiring pursuant to Article 94 of the
Articles of Incorporation be and is hereby
re-elected.”
“THAT Director MR ROBERT ALMEIDA,
retiring pursuant to Article 94 of the
Articles of Incorporation be and is hereby
re-elected.”

b) Mr Adrian Lee-Chin was appointed 6. Resolutions in respect of any other business

Director of the Company on July which can be transacted at an Annual
29, 2020. Under Article 103 of the General Meeting.
Company’s Articles of Incorporation
his appointment expires on the date of
A Member of the Company, entitled to attend and
this Meeting and being eligible he offers
vote, is entitled to appoint a Proxy to attend and
himself for re-election.
vote in his/her stead, and a Proxy need not be a
The proposed resolution is therefore as member.
follows:
If you are unable to attend the Meeting, a Form
“THAT Director, MR ADRIAN LEE-
of Proxy is enclosed for your convenience. When
CHIN, retiring pursuant to Article 103 of
completed, this Form should be deposited with
the Articles of Incorporation be and is
the Secretary, at the Registered Office of the
hereby re-elected.”
Company, “The Atrium”, 32 Trafalgar Road,
Kingston 10, Jamaica, not less than 48 hours
before the time appointed for the Meeting. The
4. Directors’ Remuneration Proxy Form should bear stamp duty of $100.00,
before being signed. The stamp duty may be
a) “THAT the Directors be and are hereby paid by adhesive stamps, which are to be
empowered to fix the remuneration of the cancelled by the person signing the Proxy.
Executive Directors.”
b) “THAT the total remuneration of all of

the Directors combined, other than the
Executive Directors, for the financial
year of the Company ending September
30, 2021, BE AND IS HEREBY fixed at DATED THE 4TH DAY OF JANUARY 2021
$27,000,000, which remuneration may
include such share incentive scheme for
directors as may be determined by the BY ORDER OF THE BOARD
Board.”
5. Appointment of Auditors and their

Remuneration
DAVE L. GARCIA
“THAT PricewaterhouseCoopers, having CORPORATE SECRETARY
signified their willingness to serve, be
appointed as Auditors of the Company until
the conclusion of the next Annual General
Meeting, at a remuneration to be agreed with
the Directors.”
AC C EL ER ATE 8
Our Business
in Brief
Over 180 years after its formation, excellence remains the unequivocal
standard for the NCB Financial Group. Given that the nature of the
universe is defined by constant change and elevation of the bar for
excellence, meeting this standard requires being on a continuous
journey of discovery, improvement and bold aspirations. The routes
may have changed over time and the milestones have evolved based
on a multitude of variables. Still, the NCB Financial Group continues
to boldly accelerate the pursuit of its goals, even in times of global
economic uncertainty and unpredictable outcomes.
Leaning on its brand pillars Buoyed by a venerable

of strength, innovation and foundation built on years of
expertise, the Group has service and strong financial
reaffirmed its commitment to performance, the Group moves
achieving its 2024 aspiration forward boldly to a new frontier
of becoming a world- of excellence – one that is
class Caribbean financial characterised by customer
ecosystem. Through consistent obsession, an unfaltering
demonstration of agility, commitment to accelerating
resilience and determination digital advancement and
to overcome challenges, the financial inclusion. Today, NCB
Group assures its customers, Financial Group is an award-
employees, shareholders winning landmark institution and
and society at large that it is one of the Caribbean’s leading
committed to protecting and financial conglomerates—
preserving their interests, no enabling and empowering
matter what. people, building businesses and
communities, and playing its
part as a transformative leader
in the industry.

NCB Financial Group Limited (“NCBFG”) is the financial holding company of

the Group, incorporated in April 2016. NCBFG has roots that trace as far back
as 1837 and remains the largest and most profitable financial services provider
in Jamaica. The Group comprises of National Commercial Bank Jamaica
Limited (NCBJ) and its subsidiaries, Clarien Group Limited (Clarien) and its
subsidiaries and NCB Global Holdings Limited- majority owner of Guardian
Holdings Limited (GHL) and its subsidiaries. NCBFG is proud to be a regional
entity with presence in 21 territories in the English and Dutch Caribbean as
well as in the United Kingdom.
NCBJ and its subsidiaries provide GHL is the parent company

an expansive range of products for an integrated financial
and services aimed at meeting services group known as the
all the commercial banking, Guardian Group, with a focus
wealth and asset management on life, health, property and
needs of customers primarily in Clarien Bank Limited and its casualty insurance, pensions
Jamaica, the Cayman Islands, subsidiaries provide personal, and asset management. The
Barbados and Trinidad & Tobago. commercial and private banking Group has grown steadily and
Products and services offered services as well as investment, currently serves markets in 21
include deposits, loans, credit wealth management and trust countries across the English
cards, overdraft lines, foreign services to our clients primarily and Dutch Caribbean, including
exchange, personal & private based in Bermuda. It is proudly Trinidad & Tobago, Barbados,
banking services, stock brokerage one of the largest independent, Jamaica, Curacao, Aruba, St.
services, investment management, privately-owned integrated Maarten and Bonaire. Guardian
individual and group pensions. financial services organisations Group’s products and services
The main subsidiaries are NCB in Bermuda. Clarien also are marketed throughout
Capital Markets Limited and offers a full range of wealth the Eastern Caribbean, the
NCB Insurance Agency and Fund management services centred Bahamas, Cayman Islands, the
Managers Limited*. NCBJ boasts on wealth creation, preservation US Virgin Islands and Belize.
over 35 locations, more than and income generating needs
300 ABMs and financial kiosks delivered in a personalised
and in excess of 8,000 merchant and bespoke manner through
locations. NCBJ’s upgraded online Clarien Investments Limited and
banking platform is available at customised trust and fiduciary
www.jncb.com. services through Clarien Trust
Limited.
*Formerly NCB Insurance Company Limited. Name changed effective October 1, 2020 when the entity completed its registration as an insurance agent under the Insurance
Act. This was subsequent to the sale of its insurance and annuity portfolio to fellow subsidiary Guardian Life Limited.
AC C EL ER ATE 10
AC C E LE R AT E
Our Awards
and Honours
In spite of the challenges and uncertainties that this year has

brought, NCB Financial Group (NCBFG) remained resolute in its
pursuit of new opportunities to grow, innovate, delight customers
and accelerate its goals. This persistence and focus garnered
recognition from several local and international bodies, as well as
customers, employees and industry peers - earning the Group
several awards and honours during the financial year.

GLOBAL BANKING AND

GLOBAL FINANCE FINANCE REVIEW
Awarded to NCB Financial Group Limited
DISTINGUISHED CRISIS THE NEXT 100 GLOBAL AWARDS

LEADERSHIP 2020 2020 BANKING GROUP
(The only Caribbean entity to earn this distinction)
JAMAICA STOCK EXCHANGE

(JSE) BEST PRACTICES
AWARDS 2019
THE GOVERNOR-GENERAL’S
AWARD FOR EXCELLENCE (MAIN
MARKET CATEGORY)
Winner
THE PSOJ/JSE CORPORATE

GOVERNANCE AWARD (MAIN MARKET)
Winner
BEST ANNUAL REPORT AWARD

(MAIN MARKET CATEGORY)
Winner
BEST WEBSITE AWARD

(MAIN MARKET CATEGORY)
Winner
CORPORATE DISCLOSURE AND

INVESTOR RELATIONS AWARD
1st runner up
NCBFG is grateful for having a team whose commitment to excellence is unwavering;

for stakeholders who continuously push the boundaries to drive innovation and growth
in all areas of the business; and for customers, whose loyalty and firm faith in the Group
continues to be a tremendous source of inspiration and constant motivation.
AC C EL ER ATE 12
$1.8T $19B $156B
ASSETS NET PROFIT* STOCKHOLDERS’
($’Trillions) ($’Billions) EQUITY*
($’Billions)
ACCEL ERATE
Performance
Highlights
ANCE
FO RM
E PER
E N U
D REV
OR
REC
>>>
E V ER
T
HES
HIG
* Attributable to stockholders of the parent.

$453B $574B $405B

NET LOANS CUSTOMER LIABILITIES UNDER
($’Billions) DEPOSITS ANNUITY & INSURANCE
($’Billions) CONTRACTS
($’Billions)
2019 2020 2019 2020
78.92% $14B $32B $77B $76B

NET LOANS TO NET RESULT FROM NET RESULT FROM BANKING
CUSTOMER DEPOSIT INSURANCE ACTIVITIES & INVESTMENT ACTIVITIES
RATIO ($’Billions) ($’Billions)
AC C EL ER ATE 14
Our Business
Highlights
1 2
4 5
1. A Clarien Bank team member shows an elderly customer how to use one of the Bank’s new Automated Banking Machines (ABMs). 2. Michael DeCouto (2nd right), Executive Vice President
and Chief Digital and Marketing Officer of Clarien Bank, participates in a panel discussion at the 2019 MasterCard LAC Innovation Forum in Miami – alongside Juan Carlos Guillermety (Nubank’s
Head of Business Development) and Mauricio Araya (BCI Chile’s Card Centre Manager). 3. Toni-Ann Singh, Miss World 2019, meets with President and Group CEO of the NCB Financial Group,
Patrick Hylton (centre) and Chairperson of N.C.B. Foundation, Thalia Lyn (left). 4. Dr. Guyan Arscott is the centre of attention for Najah Peterkin (left), Manager of Regional Customer Experience
and Channels, NCBCM, Audrey McIntosh (2nd right), Head of Private Banking, NCBJ, and Bob Blake (right), CEO of NCBJ, at the Brunch with Bob event held in January 2020. 5. President and
Group CEO of the NCB Financial Group, Patrick Hylton, during his presentation at NCBJ’s EGM 2020, held in February 2020. 6. Olympian and NCBJ brand ambassador, Elaine Thompson-Herah,
gets in the dance with Jamaican entertainers – Ding Dong and the Ravers—at the NCBJ EGM 2020 held in February 2020. 7. As part of the Private Sector Organisations of Jamaica’s response

9
8
initiative to the COVID-19 pandemic, Guardian Life Limited donated a 29-seater 2020 Toyota Coaster bus to the South East Regional Health Authority. The bus will be used by frontline health
workers at the Kingston Public and Victoria Jubilee hospitals. 8. The Guardian Group Foundation and Guardian Life Limited awarded $10M in scholarships, grants, bursaries, book vouchers
and book supplies to students who will be attending secondary and tertiary institutions for the 2021 academic year. Pictured here are this year’s National top-performing boy and girl in the
Primary Exit Profile (PEP), Chad Wright and Abbi-Gail McKenzie, who will receive $1M each, in disbursements of $200,000 per annum over five years, for the life of the scholarship. 9. Members
of the NCBJ team celebrate with the Bank’s million-dollar winner, who was surprised with the news at the Cross Roads branch in Kingston, Jamaica.
AC C EL ER ATE 16
10 Year Financial
Statistical Review RES TATED
2020 2019 2018 2017
Consolidated Income
Statement Summary (J$’000)
Net profit 26,883,412 31,164,938 28,580,966 19,107,818
Net profit attributable to the stockholders of the parent 19,090,378 29,869,398 27,958,752 19,107,818
Gross operating income 256,816,559 171,252,858 98,779,947 76,213,792
Operating income 108,826,889 91,180,975 69,614,802 54,336,912
Net interest income 52,489,709 44,595,084 35,144,184 29,759,669
Non-interest income 66,622,174 51,410,625 36,431,256 25,306,477
Credit impairment losses 10,284,994 4,824,734 1,960,638 729,234
Net result from banking & investment activities 76,370,898 76,749,460 65,817,511 51,096,962
Net result from insurance activities 32,455,991 14,431,515 3,797,291 3,239,950
Operating expenses 81,565,804 64,736,903 43,428,745 33,178,281
Staff costs 40,526,668 32,120,544 23,776,353 16,461,158
Depreciation, amortisation and lease finance cost 9,941,198 6,941,434 3,472,372 2,359,274
Taxation expenses 690,064 6,423,458 5,407,952 4,901,510
Consolidated Statement of Financial

Position Summary (J$’000)
Total assets 1,800,260,275 1,616,299,602 978,584,626 693,724,191
Loans and advances, net of provision for credit losses 452,954,936 423,102,600 372,634,701 218,615,226
Investment securities 853,085,972 759,496,006 389,490,044 299,177,288
Statutory reserves with Central Banks 35,552,128 37,316,963 43,575,130 39,022,524
Customer deposits 573,968,886 504,678,536 484,847,790 288,464,013
Liabilities under annuity and insurance contracts 405,014,541 394,615,307 38,093,007 36,185,320
Repurchase agreements 211,436,379 174,619,976 152,884,626 115,586,590
Other borrowed funds 125,066,336 124,953,101 65,558,639 38,649,556
Obligations under securitisation arrangements 71,083,957 48,305,823 58,992,666 66,743,350
Stockholders' equity 200,204,923 183,870,618 139,584,328 115,993,769
Stockholders' equity attributable to the stockholders of the parent 156,114,678 147,590,179 130,040,568 115,993,769
Profitability Ratios (%)

Return on average stockholders' equity (1)
12.57% 21.52% 22.73% 17.44%
Return on average total assets (2)
1.57% 2.40% 3.42% 2.94%
Net result from banking & investment to operating income 70.18% 84.17% 94.55% 94.04%
Net result from insurance activities to operating income 29.82% 15.83% 5.45% 5.96%
Effective tax rate (3)
1.87% 17.37% 15.91% 20.42%
Cost to income ratio (4)
68.48% 67.43% 60.68% 60.25%
1. Return on average stockholders' equity is calculated as net profit attributable to stockholders' of the parent divided by average stockholders'
equity attributable to stockholders' of the parent (stockholders' attributable to stockholders' of the parent equity at the end of the financial year
plus stockholders' equity attributable to stockholders' of the parent at the end of the prior financial year, divided by two).
2. Return on average total assets is calculated as net profit divided by average total assets (total assets at the end of the financial year plus total
assets at the end of the prior financial year, divided by two).
3. Effective tax rate is calculated as taxation expenses divided by profit before taxation.
4. Cost to income ratio is calculated as staff costs, depreciation and other operating expenses divided by total operating income excluding credit
impairment loses.

* The comparative information for previous periods was reclassified, where required, to
conform to the 2020 financial statements presentation format to enhance comparability.
2016 2015 2014 2013 2012 2011
14,448,560 12,301,790 12,327,120 8,578,858 10,045,862 13,885,301
14,448,560 12,301,790 12,327,120 8,578,858 10,045,862 13,885,301

65,747,306 61,158,813 58,067,343 48,999,634 44,413,755 44,772,383
46,936,071 41,495,517 36,794,886 32,027,321 30,140,837 31,141,273
28,123,770 25,964,030 24,660,667 23,558,986 21,784,090 21,150,860
19,424,656 17,410,410 14,561,253 10,621,731 11,287,336 11,021,297
612,355 1,878,923 2,427,034 2,153,396 2,930,589 1,030,884
43,423,353 37,854,769 34,418,353 30,975,528 29,887,501 30,650,555
3,512,718 3,640,748 2,376,533 1,051,793 253,336 490,718
28,839,998 25,494,334 22,912,745 27,775,657 17,958,962 15,653,535
13,809,023 11,942,482 11,523,930 11,226,597 9,755,916 9,240,116
1,899,414 1,563,551 1,247,403 1,209,971 812,512 580,132
4,479,992 4,082,309 3,142,766 2,472,246 3,070,027 3,704,793
607,669,433 523,815,161 499,345,092 446,575,055 379,435,519 359,618,113

189,055,786 165,404,606 157,630,000 141,150,312 111,904,854 91,728,138
275,669,541 275,987,700 264,170,757 234,437,453 210,653,557 204,748,127
29,832,265 23,247,218 22,833,217 20,392,153 17,727,899 16,068,630
273,965,888 227,850,985 202,162,392 178,411,021 162,930,350 155,800,401
35,282,653 34,689,274 34,230,910 33,914,506 25,194,324 23,564,275
105,974,938 100,004,008 134,690,626 117,377,395 101,890,449 84,075,103
12,061,154 8,595,313 11,992,819 4,900,592 3,620,012 5,693,957
47,899,756 44,292,064 13,885,577 10,101,032 2,593,201 14,378,119
103,105,310 88,394,211 81,846,383 72,516,720 65,895,952 61,977,264
103,105,310 88,394,211 81,846,383 72,516,720 65,895,952 61,977,264
15.09% 14.45% 15.97% 12.40% 15.71% 25.07%

2.55% 2.40% 2.61% 2.08% 2.72% 4.00%
92.52% 91.23% 93.54% 96.72% 99.16% 98.42%
7.48% 8.77% 6.46% 3.28% 0.84% 1.58%
23.67% 24.92% 20.32% 22.37% 23.41% 21.06%
60.65% 58.78% 58.42% 81.26% 54.30% 48.66%
AC C EL ER ATE 18
10 Year Financial
Statistical Review CONTINUED
RES TATED
2020 2019 2018 2017
Stock Unit Information (J$, unless otherwise stated)

Earnings per stock unit(5) $8.01 $12.30 $11.39 $7.76
Dividends paid per stock unit $1.90 $3.40 $2.70 $2.70
Book value per stock unit $65.48 $60.76 $53.00 $47.12
Closing share price at September 30 - Jamaica Stock Exchange
$130.90 $208.79 $124.52 $87.02
(JSE) (*)
Closing share price at September 30 - Trinidad & Tobago Stock
TT$7.75 TT$10.44 TT$5.73 TT$5.10
Exchange (TTSE) (**)
Price earnings ratio 16.34 16.97 10.93 11.21
Dividends paid [J$'000] 4,680,465 8,368,730 6,660,260 6,660,260
Dividend yield (payment date) [%] 1.45% 1.63% 2.17% 3.10%
Dividend payout ratio (payment date) [%] 23.72% 27.64% 23.71% 34.79%
Total annual shareholder return [%] (36.40%) 70.41% 46.20% 115.93%
Asset Quality Ratios (%)

Non-performing loans as a percentage of gross loans and
5.29% 5.28% 4.84% 2.45%
advances (6)
Non-performing loans as a percentage of total assets 1.37% 1.41% 1.86% 0.78%
Non-performing loans as a percentage of equity attributable to
15.85% 15.47% 14.01% 4.67%
stockholders' of the parent
Total provision for credit losses as a percentage of gross loans
3.98% 3.04% 2.17% 1.66%
and advances
Consolidated Statement of
Financial Position Ratios (%)
Loans and advances, net of provision for credit losses, as a
25.16% 26.18% 38.08% 31.51%
percentage of total assets
Investment securities as a percentage of total assets 47.39% 46.99% 39.80% 43.13%
Fixed and intangible assets as a percentage of total assets 4.47% 4.69% 2.62% 2.21%
Loans and advances, net of provision for credit losses, as a
78.92% 83.84% 76.86% 75.79%
percentage of customer deposits
Equity attributable to stockholders' of the parent to total assets 8.67% 9.13% 13.29% 16.72%
Other Statistics
JSE Index at September 30 (**) 380,425.98 516,042.91 358,320.11 262,729.14
JSE Index annual movement (Twelve months ended September
(26.28%) 44.02% 36.38% 59.73%
30) [%] (***)
Inflation Rate (Twelve months ended September 30) [%] 4.84% 3.36% 4.33% 4.61%
USD foreign exchange rate at September 30 141.57 134.14 134.06 129.20
5. Earnings per stock unit is calculated as net profit attributable to stockholders' of the parent divided by weighted average
ordinary stock units for the relevant financial year.
6. Non-performing loans are loans as to which there have been no payments of principal or interest for 90 days or more.

2016 2015 2014 2013 2012 2011
$5.87 $5.00 $5.01 $3.49 $4.08 $5.64

$2.35 $2.31 $1.18 $1.11 $1.10 $1.36
$41.89 $35.91 $33.25 $29.46 $26.77 $25.18
$41.55 $27.72 $17.93 $18.80 $21.83 $27.30
TT$2.60 TT$1.63 TT$1.00 TT$1.13 TT$1.60 TT$2.09
7.08 5.54 3.58 5.39 5.35 4.84

5,796,893 5,698,222 2,910,780 2,738,107 2,713,439 3,354,797
5.66% 8.33% 6.58% 5.90% 5.04% 4.98%
40.03% 46.20% 23.55% 31.81% 26.96% 24.11%
58.37% 67.48% 1.65% (8.80%) (16.01%) 63.68%
3.14% 5.05% 5.37% 4.84% 7.14% 7.16%
0.99% 1.63% 1.74% 1.56% 2.18% 1.87%
5.86% 9.66% 10.62% 9.60% 12.55% 10.87%
1.97% 2.62% 3.03% 2.25% 4.12% 3.06%
31.11% 31.58% 31.57% 31.61% 29.49% 25.51%
45.37% 52.69% 52.90% 52.50% 55.52% 56.93%

1.96% 2.07% 1.96% 1.85% 1.68% 1.45%
69.01% 72.59% 77.97% 79.12% 68.68% 58.88%
16.97% 16.88% 16.39% 16.24% 17.37% 17.23%
164,482.25 96,324.59 72,238.36 84,500.20 87,188.38 91,731.84
70.76% 33.34% (14.51%) (3.08%) (4.95%) 9.71%
1.83% 1.81% 9.03% 10.45% 6.65% 8.05%

127.93 118.70 112.53 103.23 89.72 86.12
* The comparative information for previous periods was reclassified, where required, to conform to the 2020 financial statements presentation format to enhance comparability.

** Source: Jamaica Stock Exchange Monthly Statistics Report.

*** Source: Trinidad & Tobago Stock Exchange Monthly Equity Summary Report.
AC C EL ER ATE 20
Chairman’s Message
We are accelerating our

transformation to ensure we
are well positioned for the future...”

My Fellow Shareholders, • The acceleration of remote work produced a global

marketplace for talent, allowing citizens in the
countries that we serve to access jobs around the
This financial year, we, along globe
with the rest of the world, were • Streaming platforms presented an opportunity to
expand our creative industry by allowing those with
forced to contend with the limited resources to produce content for global
COVID-19 pandemic, which distribution.
continues to be unprecedented • An increase in the volume of retailers establishing
in its global reach and impact. their presence online to be able to expand their
reach to local and overseas-based customers.
We have also seen local entrepreneurs pivoting their

I am extremely proud of the commendable financial business models. Local companies have started to
performance recorded by the Group, and how as produce masks and personal protective equipment,
an organisation we have demonstrated resilience, and offer sanitisation and delivery services. Each of
particularly with the acceleration of digital initiatives and these shifts creates an opportunity for us to serve our
delivery of new solutions to meet the changing needs clients by providing the financial solutions that will
of our customers. I remain extremely optimistic about enable them to capitalise on opportunities and pursue
the future of the NCB Financial Group. their dreams. Our role of being in the lives of our
customers every step of the way remains unaltered.
Optimism is a deliberate choice and mindset, and a
fundamental source of fuel for anyone navigating a I remain optimistic, and encourage you to do the
personal or professional challenge. Helen Keller also same. This is the first step in building the resilience
noted the importance of optimism, saying, “optimism to withstand the ongoing uncertainty and disruption
is the faith that leads to achievement. Nothing can be worldwide. We are accelerating our transformation to
done without hope and confidence.” ensure we are well positioned for the future to meet the
shifting and growing needs of our customers.
The COVID-19 pandemic underscores the importance
of adaptation, innovation, change and transformation. We remain committed to becoming a world-class
These principles have always been a part of our Caribbean financial ecosystem by 2024, and will
organisation as we evolved into a leading financial continue to focus on adding value in all that we do.
services Group in the Caribbean. As I contemplate the We are deeply grateful for the opportunity to continue
challenges that we face in the region, I am reminded to serve each stakeholder, and we look forward to
that life is not linear; you have ups and downs. It’s how rising together above the challenges that are masking
you deal with the troughs that defines you. That said, incredible opportunities.
there is not a period in history in which I would prefer
to be alive. Like Albert Einstein, I embrace the present On behalf of the Board, we thank our dedicated team,
with the knowledge that, “in the middle of difficulty, customers, partners and shareholders for your loyalty
there is opportunity. The bigger the difficulty, the bigger and support, which has contributed to the continued
the opportunity.” Opportunities allow us to overcome success of the Group.
challenges, resulting in growth, resilience and strength.
I am encouraged by the opportunities that have been Sincerely,

unearthed so far, some of which include:
• Young entrepreneurs have been taking advantage

Michael Lee-Chin
of digital technology to conduct e-commerce using
Chairman
mobile devices
AC C EL ER ATE 22
Patrick Hylton Dennis Cohen
Board of
Directors
Michael Lee-Chin
Thalia Lyn Robert Almeida
+ 9
Mute Stop Video Invite Participants

Alvin Wint Sandra Glassgow
You are viewing Michael Lee-Chin’s screen View Options
Our Board of Directors, in executing its

role, applies sound corporate governance
which is vital to the activities of NCB
Financial Group Limited (NCBFG) and its
subsidiaries (the Group).
Sanya Goffe Adrian Lee-Chin
... +
Share Screen Chat Record Reactions Leave Meeting
AC C EL ER ATE 24
AC C E LE R AT E
Board of Directors CONTINUED
HON. MICHAEL LEE-CHIN HON. PATRICK HYLTON DENNIS COHEN PROFESSOR ALVIN G. WINT
OJ, HON. LL.D., B.ENG OJ. CD, HON. LL.D., A.C.I.B., BBA FCA, FCCA, B.SC. CD, D.B.A, M.B.A., B.SC
Chairman President & Group Chief Group Chief Financial Officer &
Executive Officer Deputy Chief Executive Officer
Although his humble roots were Patrick was born and raised Dennis provides leadership Alvin is an Emeritus Professor
planted in Port Antonio, Jamaica in rural Clarendon, Jamaica. and oversight for the Group’s of International Business at
in 1951, Michael has since With more than three decades financial planning and reporting, the University of the West
flourished into a world-renowned of experience in Banking investor relations and several Indies. He holds a Doctorate of
entrepreneur, businessman and Finance, Patrick’s bold key business segments. He Business Administration in the
and philanthropist. Formally and fearless leadership and started his professional career at field of International Business
educated in Civil Engineering at achievements have earned him PriceWaterhouseCoopers before from Harvard University and
McMaster University in Canada, international prominence as joining Citibank, where he served has published extensively and
his professional career is a study an expert in the field. He is an in a number of roles including advised national governments and
in diversity, with interests and avid reader with an affinity for Country Treasurer. multilateral institutions in the area
achievements that span various aphorisms, and finds it nearly of international investment policy.
industries, sectors and countries. impossible to pick just one He joined NCB in 2004, and has
favourite book, or quote. served in several key roles within Alvin chairs the Audit & Group
He is known to be bold and the Group, including CEO of NCB Risk Committees of NCBFG.
visionary in his entrepreneurial Today, Patrick is chairman of Capital Markets Limited. He is Alvin serves on the Boards of the
pursuits, and credits his NCBJ, NCB Capital Markets the Chairman of NCB Insurance several of NCBFG’s subsidiaries
successful ‘Buy, Hold and Limited, Guardian Holdings Agency and Fund Managers including National Commercial
Prosper’ philosophy to a couple Limited and Clarien Bank Limited, Limited, NCB (Cayman) Limited, Bank Jamaica Limited, NCB
of the greats – Warren Buffett and also sits on the board of NCB Capital Markets (Cayman) (Cayman) Limited, NCB Capital
and Benjamin Graham. Michael’s directors for Clarien Group Limited, and NCB Trust Company Markets Limited, NCB Capital
most noteworthy achievements Limited, and several of NCBFG’s (Cayman). He also serves as Markets (Cayman) Limited,
include being a father of five, subsidiaries including NCB director of NCB Capital Markets NCB Insurance Agency & Fund
being bestowed with the Order of (Cayman) Limited, NCB Insurance Limited, Guardian Holdings Managers Limited and NCB Trust
Jamaica, and being appointed to Agency & Fund Managers Limited, Guardian Life of the Company (Cayman) Limited. He
the Order of Ontario. Limited and NCB Capital Markets Caribbean, Guardian General also serves on Jamaica’s National
(Cayman) Limited as well as Insurance Limited (Trinidad), Partnership Council and Jamaica’s
Michael sits on various boards Massy Holdings (Trinidad). In the Clarien Bank Limited (Bermuda) National Competitiveness
in Canada and throughout the mid-1990s, he was appointed and West Indies Trust Company Council and as a Director of
Caribbean and serves on the by the Government of Jamaica Limited. Jamaica Producers Group and
Boards of NCBJ and GHL. He is to lead the restructuring of the the Caribbean Policy Research
also the President and Chairman Jamaican financial sector – a He is a member at the Institute of Institute.
of Portland Holdings, a privately- project that earned him the Chartered Accountants of Jamaica
held investment company in national award of the Order of (ICAJ), and a fellow of the
Canada and chairs Jamaica’s Distinction (Commander Class) in Association of Chartered Certified
Economic Growth Council. 2002. In October 2020, he was Accountants (ACCA).
also conferred with the Order
of Jamaica for distinguished
contribution to the Financial
Sector and Philanthropy.
Chairman of the Board Executive Director Executive Director Lead Independent Director
Non-Executive Director Appointment Date - NCBFG: Appointment Date - NCBFG: Non-Executive Director
April 26, 2016 April 26, 2016
Appointment Date - NCBFG: Appointment Date - NCBFG:
February 23, 2017 Length of Directorship - NCBJ: Length of Directorship - NCBJ: February 23, 2017
17 years 14 years
Length of Directorship - NCBJ: Length of Directorship - NCBJ:
18 years 18 years

SANDRA GLASGOW THALIA LYN ROBERT ALMEIDA

MBA, B.SC. OD, J.P., LL.D., B.A. (Hons.) B.COMM., CPA, CA
Sandra is the Founder & Managing Director Thalia is one of Jamaica’s top Robert is a Founding Partner of Portland
of BizTactics Limited and a Co-Founder of entrepreneurs, sitting at the helm of Island Private Equity, and Managing Partner of the
Jamaica’s first Angel Investor Network - Grill - a leading multibillion-dollar fast food AIC Caribbean Fund and Portland Caribbean
First AngelsJA. An astute businesswoman, chain with outlets right across Jamaica Fund II. He is a Director, Senior Vice
she holds a Master’s Degree in Business and Barbados. She is also a philanthropist, President and Portfolio Manager at Portland
Administration and a B.Sc. in Marine Biology and one of Jamaica’s most passionate Investment Counsel Inc. (Canada) and
and was Jamaica’s Eisenhower Fellow in advocates for gender equality and persons serves on the boards of several Portland
2000. In January 2020 she was appointed a with disabilities. group portfolio companies.
Senator representing Jamaica in the World
Business Angels Investment Forum. She is Chairman of the N.C.B. Foundation; Robert has over 30 years experience as an
a Trustee of the NCB Pension Funds; CEO Investor & Business Executive. In addition to
Sandra also serves as a director of of Island Catering and Island Grill Holdings; his CA designation, Robert holds a Bachelor
NCBJ and chairs the NCBFG Corporate Patron of UWI/CB 5K Fundraiser; Director of Commerce Degree with High Distinction
Governance & Nomination Committee. She of the Mustard Seed Communities, Port from the University of Toronto. He currently
serves as a director of Medical Disposables Royal Patties (UK), Oracabessa Foundation serves on the Boards of NCBJ, GHL, Clarien
and Supplies Limited, Multicare Youth and Devon House Development. She is also Group Limited, Clarien Bank Limited and
Foundation Limited, DRT Communications the Honorary Consul General of Thailand, Clarien Investments Limited.
Limited, SiFi Studios Jamaica Limited and the second woman inducted into the PSOJ
Stanley Motta Limited. She also chairs the Hall of Fame, and was conferred with an
Board of the National Crime Prevention Honorary Doctor of Laws degree (LL. D) by
Fund (Crime Stop) and is Chairman and the University of the West Indies. She has
Trustee of the SMART Retirement Plan as also been conferred with national honours
well a Trustee of the NCB Pension Funds. by Jamaica and the Kingdom of Thailand.
Non-Executive Independent Director Non-Executive Independent Director Non-Executive Non-Independent Director
Appointment Date - NCBFG: Appointment Date - NCBFG: Appointment Date - NCBFG:

April 26, 2016 February 23, 2017 February 23, 2017
Length of Directorship - NCBJ: Length of Directorship - NCBJ: Length of Directorship - NCBJ:

18 years 18 years 12 years
SANYA M. GOFFE ADRIAN LEE-CHIN

LL.B (Hons.) CFA, B.A. (ECON.)
Sanya is a mother, wife, partner of the Adrian has garnered over two decades
law firm Hart Muirhead Fatta, and was of diversified experience in business,
most recently named a 2020 Eisenhower ranging from marketing fulfilment and
Fellow. She serves as a director of customer support, to investment analysis
Jamaica Producers Group Limited, and business management. An alumnus
Chairperson of Stratus Alternative Funds of Harvard Business School’s Program for
SCC, and President of the Pension Leadership Development, Adrian also holds
Industry Association of Jamaica. She also a Bachelor of Arts degree with a Major in
serves as a member of the Jamaican Bar Economics from the University of Western
Association’s Commercial Law, Intellectual Ontario, and holds the Chartered Financial
Property Law and Publications Committees, Analyst designation. A firm believer in
is a member of the UK Association of continuous learning, Adrian is currently
Pension Lawyers, and the International teaching himself how to code.
Pension and Employee Benefits Lawyers
Association. She is also co-founder of the
Adult Learning Centres of Jamaica.
Non-Executive Independent Director Non-Executive Non-Independent Director
Appointment Date - NCBFG: Appointment Date - NCBFG:

April 26, 2016 July 29, 2020
Length of Directorship - NCBJ: Length of Directorship - NCBJ:

9 years 2 months (as at September 30, 2020)
See the complete profiles for the Directors at www.myncb.com
AC C EL ER ATE 26
FY ending September 30, 2020
Corporate
Governance Statement
Corporate governance standards are continually abreast of the risk-mitigation plans

and protocols as well as adjustments
evolving with the rapidly changing business that became necessary to address
changing local developments. The
landscape in order to remain aligned with the Board was clear in its instructions to
shift in the priorities of many stakeholders, Management as to its expectations
regarding Management’s responsibility
including shareholders, customers, employees, to keep the Board informed about
the infection rate amongst employees
regulators and the wider society. and the efficacy of the protocols
put in place to protect employees,
customers and service providers
against the virus and the impact of
government-imposed restrictions on
the business.
The Board of NCB Financial Group
Limited (“NCBFG” or “the Company”) During the financial year, the Board’s
continues to be committed to Group Risk Committee also reviewed
maintaining and promoting high the updated Business Continuity
standards of corporate governance, Plans and recommended it for Board
as we believe this is critical to the approval. The overall plan and sub-
resilience and sustainability of plans were updated to address
the Group thereby contributing to
the long-term value creation for
IMPACT OF COVID-19 pandemic situations, including
matters such as employee availability,
shareholders and other stakeholders. functionality of IT systems, cyber
In this regard, our corporate security, communication protocols
governance framework is designed and legal/regulatory compliance.
to ensure the appropriate oversight Due to the unique nature of
and monitoring required in order The onset of the COVID-19, the Board, as part of its
to maintain the trust of customers,
shareholders and employees. COVID-19 pandemic ongoing monitoring and oversight
responsibilities, discussed with
presented unique and Management the efficacy of the overall
During this past year, we set an plan to deal with new issues as they
aspiration to become a world-class profound challenges, arise.
Caribbean financial ecosystem by
the year 2024. In pursuit of this,
which required that as a
COVID-19 also brought into
as a Board, we improved on our Board we operate with sharp focus the likely longer-term
governance processes. We have
placed a focus on collaboration across a higher degree of focus implications for our corporate
strategies. In response to the
NCBFG and its subsidiaries (“the
Group) and strengthening governance
and agility in providing changing environment, the Board
enhanced its discussion of strategies
in our subsidiary companies. A Group oversight of the short to ensure the long-term viability
reporting framework was reviewed by
the Corporate Governance Committee and long term prospects of our business and considered
the development and use of more
and Nomination Committees of of the business. innovation and technology to
NCBFG and its major subsidiaries and enhance the delivery of our services
recommended for Board approval. With this new paradigm, the Board to our customers and new ways
The Framework is available on our ensured that directors had regular and of working, e.g. remote working.
website, www.myncb.com under sustained dialogue with Management We also focusswwed on improved
“Corporate Governance”. on both the business risks and the organisational health, growth through
workplace health and safety issues acquisitions and/or disposal of non-
posed by COVID-19. Through regular core assets or businesses, explored
written updates, Management kept lower cost financing structures, and
NCBFG Board Framework
the NCBFG and subsidiary Boards began evaluating the use of our real
www.myncb.com/NCBFinancialGroup/media/
NCB-Financial-Group/Main-Librarie/NCB- estate assets.
Group-Reporting-Framework-Boards-and-
Committees-approved-by-BoD-12Nov2020.pdf

OWNERSHIP
SHAREHOLDERS
AIC Others
52.1% 47.9%
Approving revisions to the

CORPORATE GOVERNANCE Corporate Social Responsibility
FRAMEWORK Policy.
Reviewing requests for approval

in respect of Executives and/
BOARD OF DIRECTORS or Senior Managers within the
Group acquiring or participating in
business interests outside of the
KEY ACTIVITIES Group, accepting appointments
OF THE BOARD to the Boards of corporations,
Government agencies, schools
COMMITTEES and political committees or
councils or the holding of elected
political office.
During the 2020 Reviewing the results of Board

Evaluations conducted, and
AUDIT GROUP
COMPENSATION
Financial Year (“FY”) agreeing resulting actions.
& HR
some of the key Further details are provided in
Board Performance Evaluations.
activities undertaken to
Reviewing results of
CORPORATE GROUP enhance our corporate Organisational Health Index
GOVERNANCE RISK
& NOMINATION governance and Survey administered by a leading
global consulting firm and action
leadership practices plans from Management to
improve those results.
MANAGEMENT TEAM included:
Receiving reports, and engaging
Receiving presentations from Management, on the impact
the Heads of Guardian Holdings of COVID-19 on the Group as
Limited and Clarien Bank Limited a whole. A COVID-19 Task
on the operations of their Force was operationalised in
companies and subsidiaries. March 2020 arising out of a
recommendation of the Crisis
LEGAL & REGULATORY FRAMEWORK
MONITORING & INTERNAL CONTROL
Reviewing the structure of Management Committee formed

TRANSPARENCY ACCOUNTABILITY
Internal Audit | Board Committees

External Auditor | Shareholders
Policies | Governing Standards
boards and leadership teams in accordance with the NCBFG

POLICIES & PROCEDURES
within the context of becoming a Business Continuity Policy.

Regulators | Laws
multinational group following the Additionally, special meetings

acquisition of a majority interest in were convened across the
Guardian Holdings Limited in May Group to review the impact of
2019. COVID-19.
Approving a stand-alone Anti- Activities undertaken to leverage

Bribery & Corruption Policy synergies and connections
(“ABC”) for adoption by all the between businesses; one such
entities in the NCB Financial activity being the streamlining
Group to the extent that those of the insurance business
subsidiaries do not have their offered between subsidiaries,
own ABC Policies. The policy is NCB Insurance Agency & Fund
CHAIRMAN
applicable to all persons working Managers (formerly known as
NON-EXECUTIVE EXECUTIVE for NCBFG or on behalf of NCBFG NCB Insurance Company Limited)
DIRECTOR DIRECTOR in any capacity. Further details and Guardian Life Limited.
LEAD INDEPENDENT appear in the section “Other Key
INDEPENDENT
DIRECTOR DIRECTOR Governance Policies”.
AC C EL ER ATE 28
Corporate
Governance Statement CONTINUED
COMPOSITION OF Independent Director -

A director who:
THE BOARD a) is free of any interest,
position, association or
The Board’s composition is guided relationship that might
by the Articles of Incorporation influence or reasonably be
of NCBFG and reflects a mix of perceived to influence, in
ROLE, STRUCTURE diversity, independence, skills and a material respect his or
expertise, to facilitate objectivity in her capacity to bring an
AND COMPOSITION decision making, with high levels of independent judgment to
OF THE BOARD professional skills and appropriate bear on issues before the
personal qualities being prerequisites board and to act in the best
for directorships. As at September interest of the entity and its
30, 2020, the Board comprised nine shareholders generally;
directors. This includes seven non-
The principal role of executive directors (four of whom b) does not represent a
substantial shareholding of
are considered to be independent)
the Board is to oversee and two executive directors, being NCBFG;
the President and Group CEO and
the implementation of the Group CFO and Deputy CEO.
c) is not a close relative of a
significant shareholder of
the Group’s strategic The roles of the Chairman and Chief NCBFG; and
Executive Officer are carried out by
initiatives and its separate individuals. d) does not have an
employment relationship
functioning within the Changes during the year included the with NCBFG or its parent
agreed framework, in retirement of Oliver Mitchell Jr. at the companies.
last Annual General Meeting (“AGM”)
accordance with relevant held on January 31, 2020, and the
These definitions are generally
statutory and regulatory appointment of Adrian Lee-Chin
consistent with those outlined in The
effective July 29, 2020.
PSOJ’s Corporate Governance Code.
structures.
‘Executive directors’, ‘non-executive
directors’ and ‘independent directors’
The Board ensures the adequacy of
have been defined as (save where
financial and operational systems Role of the Chairman
otherwise defined from time to time by
and internal control, as well as the
the Group’s regulators):
implementation of corporate ethics Our Chairman, Hon. Michael Lee-
and the code of conduct. The Board Chin, O.J., is responsible for the
Charter is available on the NCBFG Executive Director – leadership and effectiveness of the
website at www.myncb.com. employed to the company Board. He has the requisite skills and
and is normally responsible for experience in a broad portfolio of
aspects of the entity’s day-to-day industries and organisations, including
operations. financial services, hospitality, real
estate, and health care to lead this
Non-Executive Director – expanding Group. The Chairman also
A director who is not an executive represents NCBFG to shareholders
director. and the wider community and
although, as the controlling
shareholder of NCBFG, he is not an
independent director in accordance
with our defined criteria, the Board
believes that neither his significant
interest in NCBFG nor his positions
NCBFG Board Charter held outside NCBFG impair his ability
www.myncb.com/NCBFinancialGroup/media/NCB-
to fulfil his duties to the Board and
Financial-Group/Policies/NCBFG-Board-Charter- Group.
Revised-November-2018.pdf

Financial expertise
Global perspective
and compensation
Financial services
Risk management
Human resources
Financial literacy
BOARD SKILLS
& EXPERIENCE
cybersecurity
Legal skills &
engagement
Stakeholder
technology/
governance
Information
Leadership
experience
Corporate
expertise
company
Strategy
Listed
Robert Almeida
Dennis Cohen
Sandra Glasgow
Patrick Hylton
Michael Lee-Chin
Sanya Goffe
Thalia Lyn
Alvin Wint
Adrian Lee-Chin
Total 9 8 6 3 6 9 8 8 1 9 7 6 8
%GE 100% 89% 67% 33% 67% 100% 89% 89% 11% 100% 78% 67% 89%
// Strategy: Demonstrated experience in developing, implementing and delivering strategic objectives. // Global Perspective: Having a global perspective
through exposure or responsibility for international operations. // Information Technology/Cybersecurity: Experience in IT Governance/technology strategies
and innovation &/or cybersecurity. // Financial Expertise: Experience in financial accounting and reporting, capital management and/or actuarial expertise.
// Financial literacy: Ability to analyse and interpret financial statements. // Listed Company Experience: Minimum of 1 year’s experience as a non-
executive director with a listed company. // Legal Skills & Expertise: Proven ability and understanding in the application of legal principles. // Stakeholder
Engagement: Demonstrated ability to build and maintain key relationships with industry, government and regulators. // Leadership: C-level experience (with
large company). // Financial Services: Local or international experience in banking, insurance and/or securities industries. // Risk Management: Proven
ability in identifying, assessing and managing macro, strategic, operational and financial risks.
Role of the President and The Board requires that the Corporate The PSOJ’s Corporate Governance
Group Chief Executive Secretary is suitably qualified and Code & The Trinidad & Tobago
capable of performing the duties of Corporate Governance Code
Officer the position. The Corporate Secretary recommend that where a Chairman
ensures that appropriate and timely is not an Independent Non-Executive
The President and Group Chief information is provided to the Board Director, the Board should appoint a
Executive Officer, Hon. Patrick Hylton, and its committees and is responsible Lead Independent Director.
O.J., C.D., has responsibility for for advising and supporting the
overall management of the Group. Chairman and Board on all governance Prof. Alvin Wint, C.D., an independent
Mr Hylton also chairs the Boards of matters. All Directors have access to non-executive director, was appointed
National Commercial Bank Jamaica the Corporate Secretary. as the Lead Independent Director by
Limited, NCB Capital Markets Limited, the Board in 2017. The responsibilities
Guardian Holdings Limited and Clarien of the Lead Independent Director
Bank Limited. include the following:
INDEPENDENCE
Role of the Corporate Chairing meetings of the Board
One of the responsibilities of the Board where the Board Chairman is
Secretary absent;
is to identify which directors meet
the criteria for independence on an
The Board has appointed Mr Dave Chairing meetings of the
annual basis. The activities in relation
Garcia as the Group Corporate Independent Directors, guided
to the annual review of independence
Secretary. The appointment and by the framework set out in the
have been delegated to the Corporate
removal of a Corporate Secretary is Board Charter (the Board Charter
Governance and Nomination
subject to the approval of the Board. may be viewed on our website
Committee.
under Corporate Governance);
AC C EL ER ATE 30
Corporate
Executive
Directors
COMPOSITION Domiciled
OF THE BOARD in Jamaica
Independent
Non-Executive
Directors
Domiciled
Non-Executive Overseas
Directors
33% 67%
Being available, as needed, for once so notified, the Board will give To assess the quality, quantity
consultation with shareholders consideration to how this may affect and timeliness of the flow
and other stakeholders; and its functioning. of information between the
Company’s management and
Serving as a liaison between the the Board that is necessary for
independent directors and the the Board to effectively and
Chairman, and the independent Meetings of reasonably perform its duties.
directors and the executive Independent Directors
directors, as needed. To carry out such other purposes
To facilitate free and open as may from time to time be
communication among independent agreed.
The directors deemed by the Board to
directors, meetings may be held at
be independent are:
which only independent directors are
Professor Alvin Wint, C.D. (Lead The Corporate Secretary (as a
present, except as may otherwise
member of Management) does not
Independent Director) be determined by the independent
attend the meeting, nor does any
directors themselves. These meetings
Sandra A. C. Glasgow other employee of the Company. The
are chaired by the Lead Independent
Lead Independent Director reports on
Director or, in his absence, another
Thalia Lyn, O.D, J.P. the outcome of each meeting at the
independent director elected by the
next regular Board meeting, orally or
Sanya M. Goffe others present.
in writing. If an oral report is given, any
material feedback is captured in the
The objectives of these meetings are:
These Directors continue to make minutes. Action items are identified
independent contributions and and carried out accordingly.
effectively challenge management. To assess the extent to which
The details of their qualifications and directors are able to provide Meetings of the Independent Directors
tenure are provided on pages 30 an independent perspective on should occur at least twice per
and 33. Board deliberations; year. Meetings were held during the
financial year.
To assess the extent of their
Directors are required to notify the
independence from the
Board of any changes in status which
controlling shareholder and from
will affect their independence, and
Management;

Access to Independent Executive Directors include:

BOARD
Professional Assistance Setting appropriate amounts that
do not interfere with judgment APPOINTMENT AND
Directors are entitled to obtain
independent professional advice
and independence RENEWAL PROCESS
relating to the affairs of the Group or Size, risks and complexity of
The Board recognises that it derives
to their individual responsibilities as operations of the Group
its strength from the diversity,
Directors, subject to approval of the
Time commitment required independence, skills and expertise
fee by the Board if the Group is to
of its members. It has delegated the
pay it.
External market factors. screening and selection of candidates
to the Corporate Governance &
Nomination Committee, which
There is no direct link between
consists exclusively of independent
Independent Non-Executive Directors’
directors.
remuneration and the annual
financial results of the Group and/
The Committee’s screening and
or its subsidiaries; and there is no
selection process includes:
requirement for share qualification.
Remuneration includes a retainer for Recruiting to the candidate

the year and a fee for each Board and profile, determining where the
BOARD
Committee meeting attended. The priorities lie.
REMUNERATION fee structure payable during the FY
consists of the following: Making initial contact with
potential candidates to confirm
their interest and suitability.
A retainer for the Chairman of
$2,666,667 per annum (not Reviewing the final slate of
The remuneration of actually paid) and a retainer candidates in order to prioritise
NCBFG’s Executives for other Board members of the choices and referring to
$1,125,005 per annum; the Board for discussion after
and Board Members is consultation on the prioritised
Directors who chair the Audit,
based on the premise Corporate Governance and
list with the Board Chair and
the President and Group Chief
that it should be Nomination and the Group Risk
Committees receive instead
Executive Officer.
sufficient to attract, a retainer of $1,968,760 per Making contact with the preferred
annum. The Lead Independent candidate(s) to confirm his/her/
retain and motivate Director, however, receives their willingness, and to outline
suitably qualified and a retainer of $2,000,000 per to him/her/them the remaining
annum; process (in particular, regulatory
experienced persons approval process in and outside
A fee payable to directors of
required to drive the $83,333 per Board meeting and
Jamaica), and to arrange
interviews based on the agreed
business in achieving its $66,667 for each Committee
meeting attended.
framework.
strategic objectives.
Executive Directors and Non-
Independent Directors do not receive
remuneration for directorships held
in NCB Financial Group Limited or its FEES PAID FOR THE FINANCIAL YEAR 2020
subsidiaries whilst remuneration for
(after any withholding taxes) are set out below:
Independent Non-Executive Directors
is approved by shareholders at Annual
General Meetings. Q/E Q/E Q/E Q/E
Director DEC 2019 MAR 2020 JUN 2020 SEP 2020 Total
There is a Non-Executive Directors’
Sandra Glasgow 681,624.26 694,142.00 494,142.00 494,142.00 2,364,050.26
Remuneration Committee comprising
those Directors who do not receive Sanya Goffe 473,438.26 435,938.00 335,938.00 335,938.00 1,581,252.26
fees as Non-Executive Directors
Thalia Lyn 273,438.25 385,938.00 385,938.00 385,938.00 1,431,252.25
and chaired by the Board Chairman.
That Committee meets as needed to Alvin Wint 687,499.76 699,999.50 499,999.50 499,999.50 2,387,498.26
review fees payable to Independent Oliver Mitchell Jr 364,584.33 93,750.44 - - 458,334.77
Non-Executive Directors. Factors that
are considered when determining
remuneration for Independent Non-
AC C EL ER ATE 32
Corporate
BOARD MEMBER TENURE Tenures as at September 30, 2020
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Hon. Michael Lee-Chin 18 YEARS

Patrick Hylton 17 YEARS
Dennis Cohen 14 YEARS
Prof. Alvin G. Wint 18 YEARS
Sandra Glasgow 18 YEARS
Thalia Lyn 18 YEARS
Robert Almeida 12 YEARS
Sanya M. Goffe 9 YEARS
Adrian Lee-Chin* 0.17 YEARS
*Adrian Lee-Chin joined the Board on July 29, 2020.

Tenures take into account the directorship of NCBJ prior to the Group’s reorganisation.
Conducting comprehensive
background checks on the
BOARD Group Compensation
identified candidate. Law COMMITTEES & HR Committee
enforcement clearance reports
will be obtained at this stage. To assist in exercising its The purpose of the Compensation
responsibilities, the Board has and Human Resource Committee is to
Presenting a draft report by the established four committees, three
Chair of the interview panel to support Board oversight of:
of which are chaired by Independent
the Committee for discussion Non-Executive Directors: The Group’s compensation
and modification, before it is principles and practices.
presented to the Board. The draft
report takes into account the Audit Committee (chaired by Prof. The review of the relationship
candidate’s resume, background Alvin Wint, C.D.) among risk, risk management,
check findings and results of the and compensation in the light of
Group Compensation & HR the Group’s objectives, including
interview process, as well as any
Committee (chaired by Hon. its safety and soundness and
other factors.
Michael Lee-Chin, O.J.) the avoidance of practices that
The Board considering and, would encourage excessive or
Corporate Governance &
if thought fit, approving the unnecessary risk-taking.
Nominations Committee (chaired
appointment subject to regulatory
by Mrs Sandra Glasgow) Succession management for the
approval/non-objection.
senior officers in the Group and
Group Risk Committee (chaired
general human resource issues.
Pursuant to the Articles of by Prof. Alvin Wint, C.D.)
Incorporation of NCBFG, all Non- Recruitment and retention of
Executive Directors must retire at Each committee has a board- talent.
least once every three years but approved charter, which sets out the
shall be eligible for re-election, if purpose, authority and responsibilities
recommended by the Board, for a The main activities undertaken by
of the committee. Each charter is the Committee during FY2020:
further three-year period. available on the NCBFG website
under https://www.myncb.com/
corporategovernance. Reviewed the Compensation and
Human Resource Committee
Charter

BOARD COMMITTEE MEMBERSHIP
Committee Members
Group Compensation Hon. Michael Lee-Chin, OJ (Chair), Hon. Patrick Hylton, OJ, CD, Sandra Glasgow and Alvin
& HR Committee Wint, CD
Corporate Governance
Sandra Glasgow (Chair), Alvin Wint, CD, Sanya Goffe and Thalia Lyn, OD
& Nomination Committee
Alvin Wint, CD (Chair), Sandra Glasgow, Sanya Goffe, Robert Almeida, Hon. Patrick Hylton,
Group Risk Committee
OJ, CD and Dennis Cohen
Audit Committee Alvin Wint, CD (Chair), Sandra Glasgow and Sanya Goffe
Reviewed the Group’s Corporate Governance & Reviewed Candidates for

organisational restructuring the Board and discussed the
Nominations Committee candidate identification process
Reviewed the succession
management strategy and Reviewed the results of the
recommended Board approval The purpose of the Corporate externally facilitated Board
Governance & Nominations Committee Effectiveness Survey and
Reviewed salary increases for is to assist the Board of NCBFG discussed actions to improve the
Executives, Senior Managers & in ensuring that its composition, effectiveness of the Board
Executive Secretaries structure, policies and processes
meet all relevant legal and regulatory Reviewed the Proposed Board
Reviewed recommendation for requirements, to strive to achieve and Committee Evaluation
Incentive Payments global corporate governance best framework for subsidiaries
practice standards and to facilitate the
Reviewed recommendations for Board and management’s objective of Reviewed the independence
promotions among the Executive increasing the long-term value of the status of existing Directors
Management Group Group.
Reviewed a gap analysis relating
Reviewed Human Resources to the Jamaica Stock Exchange
The main activities undertaken by
policies namely: Staff Loan Corporate Governance Index
the Committee during FY2020:
Policy, Paternity Leave Policy and considered an action plan to
and Remote Work Policy. The address gaps
Paternity Leave Policy is still Reviewed the policy and
undergoing the approval process procedure framework of NCBFG Reviewed the Board Committee
and its major subsidiaries in order & Peer Evaluation Process for
Discussed and approved the to ensure that policies remain up- NCBFG and its subsidiaries
Group Human Resources & to-date
Facilities Division’s proposed Reviewed and recommended the
approach to negotiating annual Reviewed the Corporate NCB Group Reporting Framework
increases to NCBJ and its Governance & Nomination for Board approval. This
subsidiaries’ salaries and Committee Charter and Group framework supports the objective
allowances for the two-year Reporting Framework for Boards for integrating the governance,
period, October 1, 2020 - and Committees as well as and in particular the reporting
September 30, 2022. the NCBFG Corporate Social relationships at the Board and
Responsibility Policy Committee levels within the
Group.
AC C EL ER ATE 34
Corporate
Focussed on the possible

impact of COVID-19 on the
Group, including reviewing
a comprehensive Enterprise
Scenario Analysis and Risk
Mitigation presentation
Reviewed a report on the post-

implementation of the upgraded
core banking software used by
NCBJ.
Exposure to
Environmental, Social
and Governance Risks
NCB is committed to conducting
and systems failures, which could business in an environmentally and
Group Risk Committee give rise to losses and impact the socially responsible manner. This
organisation’s reputational risk is consistent with the NCB Group’s
The purpose of the Group Risk good corporate governance and
Reviewed the Anti-Bribery & good citizenship principles aimed
Committee is to assist the Board in
Corruption Policy, which was at assisting in the achievement
fulfilling its responsibility with respect
recommended for Board approval of prosperous economies in the
to oversight of the Group’s risk
management framework including countries in which the Group
Reviewed the Business Continuity operates. Accordingly, when financing
the risk appetite, and the policies Policy, which saw the inclusion of
and major procedures related to development projects, assessment
a scenario for a pandemic is conducted around environmental,
managing credit, market, liquidity,
capital, operational and certain other social and governance risk issues.
Reviewed credit, market
risks as determined from time to NCB’s Credit Risk Policy Manual sets
and liquidity risks, which are
time. The Committee also plays a out how these issues are considered
associated with and/or emanate
role in the decision-making process in financing decision-making.
from the Group’s loan and
around significant risks that are to be investment portfolios
undertaken by the Group.
Examined the risk governance Audit Committee
During the year, the responsibility to framework and reviewed a
obtain updates regarding fraud, legal number of risk related policies,
and compliance matters, except those including the Outsourcing The purpose of the Audit
affecting financial statements, shifted Policy. The proposed revisions Committee is to assist the Board
from the Audit Committee to the to the Outsourcing Policy were of Directors in fulfilling its oversight
Risk Committee and the Committee recommended for approval by the responsibilities for the financial and
Charters were updated accordingly. Board of Directors operational reporting processes, risk
management, the system of internal
The main activities undertaken by Focussed on IT Security Risks, controls, the audit process, and the
the Committee during FY2020: including cybersecurity, cyber- Group’s processes for monitoring
security attacks, data safety and compliance with laws and regulations
security given the need to ensure and the code of conduct.
Reviewed the revised Group Risk
the Group is well placed to meet
Committee Charter Meetings are generally held a week
the risks and external threats
in this area. The Committee prior to Board meetings and meeting
Received reports on the Group’s
reviewed and recommended packs are circulated in advance of the
operational risk profile to include
the revised Information Security meetings. Meeting packs also include
an examination of the Group’s
Policy for approval by the Board minutes of Audit Committee meetings
information security posture and
of Directors held for the larger subsidiaries within
potential events such as fraud

the Group. Representatives of the in respect of investigations External Auditor provides an

External Auditors, Pricewaterhouse undertaken (reporting shifted to independent opinion on whether,
Coopers, are invitees for all Audit the Group Risk Committee during among other things, the Group’s
Committee meetings within the Group. the course of the FY) financial report provides a true and
fair view of its financial position and
During the FY 2020, the responsibility Reviewed reports from the Group performance.
for obtaining updates on fraud, legal Legal and Compliance Division
and compliance matters, except those on regulatory compliance, During the course of the FY, there
affecting financial statements, was breaches and remediation and was a rotation in the lead audit
shifted from the Audit Committee the management of legal risk partner, resulting in Mr Paul Williams
to the Risk Committee and the (reporting shifted to the Group assuming the role from Mr Garfield
Committee Charters were updated Risk Committee during the course Reece. The lead audit partner and
accordingly. of the FY) his team attended meetings of the
Committee and met with members
The main activities undertaken by Reviewed all relevant related party of the Committee in the absence
the Committee during FY2020: transactions to ensure they were of management to discuss the
in compliance with the policy on audit process, any internal control
Related Party Transactions weaknesses, risk matters and
Reviewed quarterly unaudited
whether there were any significant
financial statements and Stock Submitted a quarterly report to the
disagreements with management
Exchange releases with the Board, in writing, from the Audit
regarding the financial statements.
Group CFO and Deputy CEO, Committee Chairman on matters
the Group Chief Audit Executive reviewed and discussed by the
PwC is required to confirm, at
and the External Auditor and Committee
least annually in writing, that the
recommended approval of their
Participated in annual training firm complies with relevant ethical
release by the Board, giving due
session arranged for Audit requirements regarding independence,
consideration to whether they
Committee members within the meaning of the Ethical
were complete and consistent
Standards promulgated by the
with the information known to
Held separate private sessions Auditing Practices Committee of the
Committee members
with the External Auditor (without Institute of Chartered Accountants of
Reviewed changes in International the Group Chief Financial Officer, Jamaica. Those standards align with
Financial Reporting Standards Group Chief Audit Executive the Code of Ethics for Professional
in order to develop a full and Corporate Secretary Accountants promulgated by
understanding of their likely being present) and the Group the International Federation of
impact on the financial statements Chief Audit Executive (without Accountants. ISA 260 Communication
management being present) with Those Charged with Governance
Reviewed the External Auditor’s requires communications in relation
proposed audit strategy, scope Reviewed Statements of to any matters or relationships which
and fees for the audit of the year- Confirmation of execution the external auditors believe may have
end financial statements of charter responsibilities to a bearing on the firm’s independence
Subsidiary Audit Committees or the objectivity of the audit
Pre-approved all non-audit related engagement team.
services provided by the External Reviewed and recommended
Auditor to companies within the revisions to the Audit Committee The Audit Committee believes that
Group Charter and reviewed and the continued retention of PwC
approved revisions to the Internal as our external auditor is in the
Reviewed reports from the Group Audit Charter. best interest of the Group and our
Internal Audit Division on the shareholders, and will recommend
Group’s risk management and to our shareholders the approval of
internal control environment, the selection of PwC as our external
noting significant audit findings External Auditor
auditor for the 2020/2021 financial
and management’s action plans year at our next Annual General
for resolution PricewaterhouseCoopers (PwC) is
the Group’s External Auditor, whose Meeting scheduled in 2021.
Reviewed reports from the re-appointment was affirmed at the
Fraud Prevention Unit on frauds, Group’s Annual General Meeting
forgeries and other irregularities (AGM) held in January 2020. The
AC C EL ER ATE 36
Corporate
Corporate
MEETING
MEETINGS AND ATTENDANCE
Governance
and Compensation
ATTENDANCE Board Audit
Nomination
Committee
and HR
Committee
Group Risk
Committee
AT BOARD AND Robert Almeida 7/7 N/A N/A N/A 4/4
COMMITTEE Dennis Cohen 7/7 N/A N/A N/A 4/4
MEETINGS Sandra Glasgow 7/7 7/7 2/2 3/3 4/4

Patrick Hylton 7/7 N/A N/A 3/3 4/4
During the year, with the exception
Michael Lee-Chin 7/7 N/A N/A 3/3 N/A
of an overseas-based Director who
retired in January 2020, there was Sanya Goffe 7/7 7/7 2/2 N/A 4/4
a 100% attendance at Board and Thalia Lyn 7/7 N/A 2/2 N/A N/A
Committee meetings. The frequency
of meetings held and activities Alvin Wint 7/7 7/7 2/2 3/3 4/4
undertaken were in accordance with *Oliver Mitchell Jr 1/2 N/A nil N/A N/A
the respective Charters. Following
**Adrian Lee-Chin 2/2 N/A N/A N/A N/A
the onset of COVID-19 pandemic in
March 2020, all meetings were held
virtually and a protocol established *Oliver Mitchell retired from the Board on January 31, 2020. He **Adrian Lee-Chin joined the Board on July 29, 2020
did not attend any Corporate Governance & Nomination Committee
for holding virtual meetings. meetings since they were held in February and July 2020.
The Board Effectiveness Survey

BOARD & was facilitated by a leading global
COMMITTEE consulting firm. The survey was
complemented by interviews with
EVALUATION five of the nine Directors (three
independent Directors and two
The Board evaluation process Executive Directors). The Survey was
comprises two major activities: based on a three-pronged framework:
Director Self/Peer Evaluation Board Platform – Foundation of a
BOARD in which Directors evaluate forward-looking board
PERFORMANCE themselves and each other.
Board Activities – Putting the
Board effectiveness surveys Board’s best foot forward
administered by external parties.
Board Performance – Measuring
the Board’s impact on value
The Board The Director Self/Peer Evaluations creation.
entails assessing contribution to
recognises that it interaction, quality of input and
Representatives from the consulting
needs to continually understanding of the role. Each
director is provided with a report firm presented the results at a Board
monitor and improve on the feedback received on him/ meeting held in January 2020; the
report included results compared to
her, all directors receive comments
its performance. on overall observations, and the previous years as well as benchmarks
Chairman receives details of each the firm was able to establish globally.
This is achieved through the director’s evaluation so he may The key areas agreed for attention
annual performance evaluation, determine whether any further steps were:
full induction of new Board - in particular, conversations with organisational health, which
members and ongoing Board specific directors would be warranted has been receiving particular
development. or helpful. focus under the NCB Accelerate

programme with regular reporting will affect the Group’s business Where do the Obligations Start
to the Board; and operations. Consequently, the and Stop and How to Handle
Group has a continuing awareness the Interconnectedness”. This
ensuring that presentations programme in place for its Directors, session included emerging
being made to the Board and which may take many different forms, trends in corporate governance,
Committee meetings were at through distribution of publications, components of a subsidiary
the right level and capturing workshops, presentations at governance framework, and
the key elements to facilitate Board meetings and attendance at laws pertaining to subsidiary
optimal discussion. Directors conferences encompassing topics governance within the main
were encouraged to give focus on areas including, directorship, jurisdictions in which the Group
to exploring areas of risk and corporate governance, business, operates.
concern. The Group Reporting industry and regulatory developments.
Framework is expected to achieve
Additionally, Members of Audit
significant progress in this area. During FY2020, Board members Committees within the Group receive
received publications and training on an annual basis. This
presentations on various topics, year’s topic was “IFRS 17 - Insurance
including “Considerations for an Contracts”, which was delivered by
DIRECTOR Evolving Board: A Case Study”.
Additionally, the continuing
representatives of Pricewaterhouse
Coopers.
INDUCTION AND development calendar includes annual
training for the Directors within the
CONTINUING Group. For FY2020, we recorded
DEVELOPMENT 100% attendance by Directors of
NCBFG at the following interactive
training sessions held:
Induction Anti-Money
Laundering Training
We have a comprehensive induction
programme in place for our newly Roger Hernandez, Financial
appointed Directors. This involves Advisor - Caribbean Financial STAKEHOLDER
meetings with other members of Action Task Force Secretariat,
delivered training on the topic
ENGAGEMENT
the Board, Committee Chairs,
some members of the Executive “Anti-Corruption and the Role of
Management Team, and Heads of the Board and Compliance”. This
Subsidiaries. During the induction, covered topics such as Corporate
each Director is encouraged to Governance and the Role of
identify areas on which they would the Board, Risk Assessments, Disclosure and
like additional information, or further Definition of Corruption Risk Transparency
meetings, which are then arranged by and Corruption Risk Factors for
the Corporate Secretary. financial institutions.
The Group is committed to promoting
investor confidence in the markets in
On completion of the induction which it operates by at a minimum
programme, all new Directors Information
Technology Training complying with its disclosure
have sufficient knowledge and obligations in a way that provides
understanding of the business to investors with equal access to timely,
enable them to effectively contribute to Mr Andrew Nook of Symptai
Consulting Limited delivered balanced and effective disclosures.
strategic discussions and oversight of All market sensitive information
the Group. training on “Data Privacy &
Protection”. This was very is released to the Jamaica Stock
comprehensive, covering topics Exchange (JSE) and the Trinidad
On joining the Board at the end of July and Tobago Stock Exchange (TTSE)
2020, Adrian Lee-Chin participated such as Work From Home Risks
and Tips, Cyber Threat Trends in compliance with our disclosure
fully in the induction programme and obligations under the Exchanges’
opted for further meetings, which were in 2020, the importance of Data
Privacy and the Jamaica Data Listing Rules. Additionally, the Group
arranged for him by the Corporate facilitates Quarterly Investor Briefings
Secretary. Protection Act.
using digital platforms that allow
shareholders, journalists and other
Corporate stakeholders to participate.
Governance Training
Continuing Development The Board and employees receive
Mrs Suzanne Ffolkes-Goldson, copies of all market announcements
The Board is required to be up Attorney-at-Law and Lecturer led after release. In addition, the Group
to date with current business, training on “The Roles of Directors posts all information released to the
industry, regulatory and legislative of Entities within a Conglomerate JSE and TTSE on our website.
developments and trends that – Parent and Subsidiary Boards:
AC C EL ER ATE 38
Corporate
The Company believes in Relations and Financial Advisory the communities in which they
communication with its stakeholders Unit of NCB and JCSD (Registrar) operate. Additional information on
and engages them in a variety of ways. under the Investor Relations tab of activities relating to corporate social
the NCBFG website. Shareholders’ responsibility can be found on page
queries are generally handled there 135.
or are appropriately routed by the
Shareholders Corporate Secretary’s Office of
NCBFG. Regulators and
Annual General Meeting the Government
(AGM)
Customers
At our AGM, discussion is facilitated The Board, Senior Management
in an open setting as microphones and other key personnel continue
are provided for use by shareholders The importance of customers to the to engage Regulators and/or
to openly air their questions, Group is evidenced by the creation Governments on issues critical to
comments and concerns, which are of a Division during the FY, focussed good governance as well as any other
in turn addressed by the Chairman, on Customer Experience and issues that they may deem important.
Board Members, Executives, the Organisational Health, in furtherance
Corporate Secretary and/or External of the commitment to prioritise two
Auditor. This event is available via live critical strategic pillars – delighted
streaming. customers and inspired people and
culture.
Quarterly Investor Briefings

Employees
Shareholders are also able to engage
with Senior Executives at our quarterly
investor briefings. They, along with The Board understands that there is NCBFG BOARD
members of the media, are invited to a correlation between employee well- CHARTER
make contact or submit queries via the being and organisational well-being
Investor Relations Office and/or the and whilst not all employees will have
Group Marketing & Communications an opportunity to interact directly with
Unit so that they may be addressed. the Board, there is an opportunity
Prior to the COVID-19 pandemic, for their voices to be heard through Our current Board Charter is located
questions were facilitated live in feedback given in Organisational on our website at www.myncb.com
person and questions that were Health Surveys. The results of these under Corporate Governance.
shared prior with our Group Marketing surveys, along with action plans put
and Communications and Investor forward by Management are carefully
Relations Units were also addressed. considered by the Board.
Since the pandemic, we have
continued to facilitate questions and
comments prior to and during the live Communities
briefing, but not in person.
The Board continues to be fully

Making contact with the supportive of the important work
being carried out by the three
Investor Relations Team Foundations - N.C.B. Foundation,
and Company Registrar Guardian Group Foundation and
Clarien Foundation, and companies
The Investor Relations team is within the Group towards improving
accessible and provides responses the lives of the people living in
to enquiries received via various
channels. Contact information is
available for the Head, Group Investor

Anti-Bribery Securities Trading Policy

Corruption Policy
The Group has an established
We support and foster a culture Securities Trading Policy, which seeks
of zero tolerance towards bribery to ensure that key persons in the
or corruption in all our activities. Group (and their ‘connected parties’)
The purpose of the Anti-Bribery do not abuse their positions by using
and Corruption (“ABC”) policy is to insider information, not available to
OTHER KEY specifically: the market, to trade shares for their
GOVERNANCE financial benefit. This policy takes
a) set out NCBFG’s responsibilities, into account requirements of the JSE
POLICIES
and the responsibilities of those and the TTSE and is included among
working for NCBFG (including the list of policies in the Annual Staff
employees at all levels, directors, Declaration.
officers, temporary or part-time
workers, volunteers, interns,
In addition to the contractors, external consultants Whistleblower Policy
overarching Board and service providers), in
observing and upholding NCBFG’s The Group has a Whistleblower
Charter, there are some position on bribery and corruption; Policy, which was established to
and encourage and enable employees
other key policies, which to make, in good faith, protected
b) provide information and guidance
further illustrate our to those working for NCBFG on
disclosures of improper conduct, via
a confidential channel, without being
guiding philosophy as a how to recognise and deal with
subjected to any form of retaliation
bribery and corruption issues.
or other occupational detriment;
business: and to regulate the receiving and
Previously, this risk was managed investigation of any such disclosure.
through various policies, such as This policy complies with the
Code of Conduct the Code of Business Conduct, Jamaican Protected Disclosures Act
Whistleblower Policy and/or the AML/ and is included among the list of
There is a Code of Conduct applicable CTF Policy & Procedures Manual. policies in the Annual Staff Declaration
to all directors within the Group and This policy has been added to list of of Policies.
there is a Code of Business Conduct policies in the Annual Staff Declaration.
applicable to employees. The Board The abovementioned policies are all
has approved these Codes of Conduct available on the Company’s website
(the Codes) which bind directors and www.myncb.com.
employees of the Group to the highest Corporate Social
standards of professionalism and due Responsibility Policy
diligence in discharging their duties.
The Codes provide guidance on areas NCBFG has adopted a Corporate
of conflict of interest, confidentiality Social Responsibility Policy, with
and responsibility of the directors oversight for all its subsidiaries
and employees to the Group, the operating in various territories across
shareholders, and regulators. The the region. While the GHL and Clarien
Code of Business Conduct is included subsidiaries are accountable to their
among the policies listed in an Annual individual and localised Corporate
Staff Declaration of Policies that are to Social Responsibility (CSR) policies,
be read, understood and signed-off at they are also ultimately subject
the start of each calendar year. ARTICLES OF
to the principles outlined in the
NCBFG policy. NCBFG believes that INCORPORATION
a commitment to the principles of
Corporate Disclosure Policy CSR not only complements its core
business strategy, but also supports
The Group’s Corporate Disclosure the key corporate values of its brand.
The Articles of Incorporation of NCB
Policy applies to all directors, officers By practising CSR, companies like
Financial Group Limited have not been
and employees of NCB Financial NCBFG can consciously manage the
amended since its incorporation in
Group Limited and its subsidiaries, impact they have on all aspects of
April 2016.
and regulates the disclosure of all society, including economic, social and
material information of the NCB Group environmental.
relating to its business and activities
whether in written or oral statements.
Sandra A. C. Glasgow
Chairperson
Corporate Governance & Nomination Committee
AC C EL ER ATE 40
Our Policies
and Practices
NCB Financial Group is governed

by a robust set of policies and
procedures approved or authorised
by its Board of Directors. These
policies and procedures,
guided by applicable laws,
regulations, codes of ethics
and best practices, provide a
framework for effective decision
making and help to maintain the
accountability of the organisation
to its people, customers,
suppliers, shareholders, and
society at large.
that the Group’s companies shall be f For the Group companies with
responsible to make any disclosure securities listed on a stock
that they are required to make exchange (NCBFG Listed
by virtue of any law, regulation or Companies), general stipulations
regulatory requirement. This policy for disclosure, in respect to
also outlines the following: financial information and business
CORPORATE operations, are included in the
DISCLOSURE POLICY f Objectives and principles of Annual Report to shareholders
disclosure
f In addition to the means of
f Media and communication disclosure required by law,
protocols NCBFG Listed Companies will:
As an entity with publicly traded
shares having an ethos for honesty
f Guidance and criteria for • conduct meetings;
and transparency, NCBFG maintains
representatives in the organisation • disclose information on the
a Corporate Disclosure Policy which
who are authorised to make organisation’s website
regulates the disclosure of information
disclosures on behalf of the Group • issue press releases.
by and about the organisation and
its business activities. It stipulates
f Parties and rules for the disclosure
of information

Additional information can be found

in Our Business Enablers section (see
page 115) and Corporate Social
Responsibility section (see page
135).
DIVIDEND POLICY HUMAN RESOURCES

DEVELOPMENT
POLICIES AND LEARNING AND
PRACTICES DEVELOPMENT
NCBFG maintains a dividend policy The Company is committed to

to govern the structure of dividend continuously developing and
payouts in order to ensure that the enhancing initiatives that support
organisation maintains adequate Through its Human Resource (HR) employee professional development
capital to meet its strategic objectives, development philosophies, policies and expertise. The Corporate
while complying with regulatory and/or and practices, the Group delivers Learning Campus, for instance,
any other requirements. In determining on its core mandate which is the supports the NCBJ’s employment,
whether a dividend should be paid, development and direction of retention and growth strategies,
the organisation must ensure that it strategies for effective and efficient including succession planning,
is able to meet its capital needs and management of the human capital of promotion, development and cross-
future growth while balancing the the Group. training interventions and thereby
return to shareholders and investors. enables increased performance and
To support this, the Board determines In keeping with the organisation’s productivity levels.
an appropriate dividend pay-out rate strategic direction the Group has
each year based on profitability and established and maintains a talent NCBFG is committed to continuously
the capital requirements of the Group. management framework. This enhancing its talent management
facilitates talent acquisition, employee strategies which enable capacity
development, workforce planning and capability building for
DIVIDEND PAY-OUT RATE and retention, which enables the HR operational excellence to enhance
function to continue to be a strategic the sustainability and profitability
The Board of Directors will declare driver, and create a work environment of the Group. This includes
dividends to shareholders, at its that is conducive to high levels of onboarding of qualified candidates,
discretion. These dividends will be employee productivity, innovation and employee development, succession
paid from the realised earnings of customer centricity. management, performance
NCBFG, and will be subject to a management, retention strategies and
maximum of 50% of the maximum In order to achieve operational workforce planning. The practices
profits earned each year. In the excellence, the Group HR function and procedures which guide talent
event that the payout is less than ensures that the business has the right management are: fairness and
50% in any one year, the Board of capabilities, capacity and organisation consistency, non-discrimination on the
Directors reserves the right to increase design to create value. In delivering grounds of sex, race, age, religion or
future distributions proportionately. on these objectives, some of the main disability and conforming to statutory
Furthermore, the Board may also areas of focus in the Group’s policies regulations and agreed best practices.
distribute to its shareholders the full and practices include:
amount of the dividends received
from its subsidiaries and realised f Learning and development SUCCESSION MANAGEMENT
gains arising from non-recurring and f Talent management
extraordinary transactions, at its f Succession management NCBFG recognises that succession
discretion. f Education/benefits management is critical to business
f Whistle-blowing continuity and has therefore
The Dividend Policy is consistent with f Occupational health and safety implemented strategies and
the Capital Management Plan, and f HIV workplace policy programmes which ensure that the
is reviewed annually, or as deemed f Diversity organisation has the right talent in
necessary by the Board of Directors. f Sexual harassment mission critical and key leadership
f Supply chain management positions. It also ensures that there is
f Physical asset management. continuous development of potential
business leaders and renewal of
learning and development.
AC C EL ER ATE 42
Our Policies
and Practices CONTINUED
REWARD AND RECOGNITION OCCUPATIONAL HEALTH AND WHISTLEBLOWER POLICY

SAFETY
Organisational health was a major NCBFG provides a work environment
area of focus for the NCBFG over The Group seeks to provide a that encourages and enables
the past year. Employee reward and workplace that is free from preventable employees and others to raise serious
recognition programmes continue injuries and occupational illnesses concerns about breaches arising
to be used to drive the motivation through the observance of the from how employees conduct their
of team members and several such respective rules and regulations by roles and responsibilities. This is in
initiatives have been implemented all concerned. We believe that a safe keeping with internal policies and
across the organisation. and healthy working environment is applicable laws. It is important that
essential to achieving high productivity our stakeholders understand that
and work quality comparable with we value the role that our employees
PERFORMANCE international standards. The Group is play in supporting a culture of high
MANAGEMENT committed to compliance with safe standards of business and personal
practices and the promotion and ethics without any fear of adverse
NCBFG recognises performance maintenance of a safe and healthy consequences.
management is a key driver of working environment through the
operational excellence. Through training and education of employees.
system based solutions the EDUCATION/BENEFITS
organisation creates efficiency
throughout the employee performance HIV/AIDS WORKPLACE POLICY The Group’s Education Policy
management cycle. The aim is seeks to encourage staff to
to ensure the right capability and The policy provides a framework to explore opportunities to build their
capacity to drive the business’ monitor and mitigate the impact of competencies by improving their own
strategic aspirations. HIV/AIDS on the Company and seeks knowledge and understanding of the
to maintain stability and productivity skills and issues which are relevant to
in the workplace, whilst protecting the the services offered by NCBFG.
confidentiality, dignity and rights of HIV
positive persons.

DIVERSITY MANAGEMENT SUPPLY CHAIN MANAGEMENT
NCBFG seeks to take advantage of its NCBFG continues to implement and

diversity to foster an environment of refine our supply chain strategy to
creativity, innovation and idea/solution ensure the creation of sustainable
generation in order to ultimately and collaborative relationships with BUSINESS CONTINUITY
achieve its vision and compete our commercial partners. This in turn POLICY AND PLANS
effectively in the global marketplace. will lead to improved service quality,
NCBFG understands that a diverse a reduction in our addressable spend
workforce, through the infusion of and cost to income ratio, increased
talents and experiences, can improve operational efficiency and enhanced
the quality of decisions and increase productivity. The Group’s business continuity policy
innovation by providing a range of and plans have been crafted to ensure
perspectives on each of these areas. that the business is able to minimise
We believe that leveraging the mix of PHYSICAL ASSET financial losses and safeguard
talents and experiences will translate MANAGEMENT employees and customers in the
into the better serving of the needs of event of a disaster or non-financial
our customers and the markets within Our asset management strategy disruption.
which we operate. outlines our approach in optimising
the value of the organisation’s The Business Continuity Plans outline
asset portfolio and enhancing our the response to be undertaken in
SEXUAL HARASSMENT asset management capabilities. specified scenarios, and indicates
This involves efficient space the minimum resources required to
The Group is committed to the management, integrated real estate ensure the continuity of key business
maintenance of a work environment portfolio planning, and environmental functions in the event of disruptions.
which fosters respect and dignity sustainability. The plan is drafted in a modular
and is free from sexual harassment. format such that individual sub-
NCBFG does not tolerate sexual plans are maintained for the different
harassment of its clients, commercial subsidiaries, divisions, branches and
business partners or employees and critical business units.
requires that all relationships with
customers, commercial business The sub-plans are stored both
partners and others be professional physically and in a central web-based
and free from sexual harassment. repository, which facilitates plan
distribution, sharing and updating.
For each business area, the sub-plan
AC C EL ER ATE 44
Our Policies
and Practices CONTINUED
provides a map of specific instructions The main objectives of the policy

to be carried out in the event of include:
significant business disruptions and
events of varying scope. Among other f Minimisation of the impact of
things, the overall plan describes disruptions on the business and
the role for recovery sites, backup customers by the resumption of
databases and system facilities. critical business functions REMOTE WORK
POLICY
A chief command team is responsible f Provision of a clear framework for
for monitoring the effective execution delegation of responsibilities to
of the plan in the event of business enable employees to recover key
disruption. functions and services
An essential part of the organisation’s
response to the COVID-19 pandemic
Key components of this overall plan f Assurance of recovery of
was a major pivot to the remote work
were updated, following the onset Information Technology
environment, to manage the physical
of the COVID-19 pandemic, as new infrastructure within critical
distancing requirements of the health
scenarios and more appropriate timeframes
crisis and minimise the exposure of
responses were developed to meet
employees. With over 60% of the
the needs of the organisation, its f Assurance of compliance
organisation now working remotely,
employees and customers. Customer with all applicable regulatory
this business continuity plan was
education was also critical in the requirements.
updated to include the pandemic
deployment of the organisation’s
scenario, and other relevant rules
response to the pandemic, as the
and regulations, while our Remote
organisation continued its efforts to
Work Policy and strategy were also
migrate customer transactions from
developed.
physical spaces to digital channels
to ensure continuity and ‘always-on’
This policy outlines the guidelines
availability.
under which remote work is practised
and governed by the organisation,
and establishes standard work
arrangements which facilitate efficient

and effective environments for non- and society will also expand. To f Community development –
customer facing job functions to be ensure that the organisation continues ensuring that the organisation
executed. Given the nature of the to engage in actions which balance gives back through nation-
organisation, the Remote Work Policy its right to operate freely with its building, community development
is maintained in accordance with the responsibilities as a corporate citizen, and other acts of service
NCB Information Security Policy, and NCBFG has updated its Corporate
established practices for keeping Social Responsibility Policy to match f Environmental sustainability
equipment safe, as well as managing, its expanded scope. – continuously seeking
securing, storing, using and retrieving environmental solutions with
data. The updated policy now outlines minimal footprint, while putting
guidelines for six key areas: processes in place to prevent,
The Remote Work Policy also reduce and mitigate any negative
addresses the organisation’s on- f Inspired people – to ensure that impact on the environment.
boarding efforts, to ensure that the the organisation continues to be
organisation is understood to be an employer of choice, based
flexible and capable of utilising various on fundamentals of equality
modes of work to ensure continuity, and equal opportunity, fair
sustainability and growth while labour practices, competitive
accessing global talent pools. compensation and benefits and
a safe, harassment-free work
environment;
f Doing good business – ENVIRONMENTAL

conducting business with the POLICIES AND
highest levels of integrity, honesty PRACTICES
and good faith
f Creating delighted, lifelong

CORPORATE SOCIAL customers – winning and retaining
RESPONSIBILITY customers with world-class NCBFG is focussed on seeking
POLICY products, services and customer environmental solutions with minimal
experience footprint, while putting processes
in place to prevent, reduce and
f Data security – protecting mitigate any negative impact on the
the privacy of customers’, environment.
As the organisation grows towards employees’, suppliers’ and
its aspiration of becoming the business data
Caribbean’s leading financial services
ecosystem, it recognises that its
impact on the people, environment
AC C EL ER ATE 46
President’s Message
The NCB strategic framework that we

established prior to the onset of the
pandemic put us in a position to effectively respond
to the changes brought on by the pandemic.”

To our valued shareholders,
At the beginning of the Some may ask how we can remain committed to such
bold aspirations in the face of the emerging challenges
2019/2020 financial year, we and uncertainty. I say anything less than that would
embarked on our bold 2024 be counter to the NCB mindset, which has taken us
from being a failed bank that was once referred to as
aspiration to become a world- an ‘ugly monkey’ to becoming the largest and most
profitable financial conglomerate in Jamaica. Today, we
class Caribbean financial have exceeded this achievement to become a financial
ecosystem anchored by four services leader in the region.
main pillars: Our success is not the result of luck or the absence of
challenges. It is a result of our commitment to seeking
out the opportunity in every challenge and continuing to
1. Strong financial performance aim high. The secret of our success is and will continue
2. Delighted customers to be that we never give up, which is why the size of
our commitment to achieving our 2024 aspiration is
3. Inspired people and culture
equivalent to the size of this aspiration.
4. Digital to the core
We set the bar at ‘world-class’ for our customer

experiences, culture, technology systems, processes and
financial performance. Given the size of our ambition, we
HOW WILL WE MOVE
established a framework that would allow us to deliver FORWARD?
against this ambition for the benefit of our employees, our
customers, our shareholders, and the communities we The strategic framework that we established prior to the
serve. We established our strategic execution programme onset of the pandemic put us in a position to effectively
- NCB Accelerate, with a robust set of initiatives and a respond to the changes brought on by the pandemic.
roadmap for meeting our goals in collaboration with team We have been embracing and confronting this period of
members across the organisation. This was supported global uncertainty by engaging in the four Ps:
by a mechanism for identifying dependencies and
monitoring milestones and value captured. This was
further reinforced by capability-building and initiatives to 1) PIVOT – TRY AN ALTERNATE APPROACH
re-energize the team on a continuous basis.
OR INITIATIVE TO REACH THE GOAL
When I shared our aspiration with you at the Annual
The physical distance requirements forced us to
General Meeting in January 2020, we could never have
accelerate our plans to migrate services to digital
imagined what lay ahead of us later in 2020. As the
channels in order to safely facilitate our customers’
world contends with the COVID-19 pandemic, our lives at
financial needs. These objectives were met earlier than
work and home continue to be impacted in unimaginable
anticipated, while others have been delayed. The process
ways. Because of this, 2020 is a year that will be hard to
of accelerating digital adoption has not been without
forget.
challenges, as the countries we serve contend with
varying levels of internet access and digital literacy.
While the future remains uncertain, we do have control
over how we respond in the present. Notwithstanding
Nevertheless, we continue to respond with solutions to
what the future holds, I remain committed to the
better support our customers, such as the zero-rating of
following:
our Jamaican web platforms. This enables our customers
to use our digital and online services from their mobile
► The health, safety and wellness of each team
devices, even without activating a mobile data plan. This
member of the NCB Financial Group
has gone a far way in making some of our digital services
► Serving our customers and empowering them to accessible to our customers, and we continue to support
navigate during the pandemic and beyond this with relevant digital education programmes.
► Our 2024 aspiration to become a world-class
Caribbean financial ecosystem
AC C EL ER ATE 48
President’s
Message CONTINUED
In addition to what we have done with respect to our own clients. As a Group, we donated to the initiative to
operations, we have also helped many of our customers procure ventilators and other medical equipment
to pivot in order to put their businesses in a position to to support our health care system and workers in
withstand the challenges brought on by the pandemic. responding to the onset of the COVID-19 pandemic
in Jamaica. We also provided educational grants to
workers that had been displaced due to COVID-19
2) PURSUE NEW OPPORTUNITIES so that they could pursue short-term training and
certifications for online work. This programme has
As individuals, businesses and as a society, we must enabled many of these workers to begin earning
embrace and leverage the irreversible digital shift again by offering services virtually to overseas
precipitated by the pandemic, in order to effectively companies.
participate in the post-pandemic world. Across the
Group, you can expect to see the continued roll-out of ►► Guardian Group extended payment grace periods
new digital products, services, processes, and business for life and health insurance policies, to provide
models. additional peace of mind to customers. The Group
also partnered with the United Nations University
for Peace Centre for Executive Education to launch
3) P.U.S.H (PERSIST UNTIL SOMETHING HAPPENS) a scholarship programme for applicants seeking to
positively influence the world in achieving one or
Calvin Coolidge said, “Nothing in this world can take more of the UN’s sustainable development goals.
the place of persistence. Talent will not; nothing is Twelve awardees were selected from over 384
more common than unsuccessful men with talent. applicants across Trinidad and Tobago, Barbados,
Genius will not; unrewarded genius is almost a proverb. Jamaica, Guyana and the Dutch Caribbean.
Education will not; the world is full of educated derelicts.
Persistence and determination alone are omnipotent. The ►► Clarien supported senior citizen homes with
slogan Press On! has solved and always will solve the donations of face masks.
problems of the human race.”
These are just a few examples of how we continue to live
We have been persistent in the pursuit of the same the four Ps, which will enable us to continuously create
targets that were established prior to the pandemic. value and withstand the unimaginable. I hope you will join
This has forced us to identify new ways of working, and us in continuing to pursue your hopes and dreams.
to become creative in our approach. As a result of this
persistence, we have seen record sales in certain product As we say goodbye to a financial year like no other, I
areas that have exceeded even pre COVID-19 levels. am grateful to each team member, customer, supplier
and shareholder for their continuous support. We also
commit to continuing to support all our stakeholders
in weathering this challenging period and emerging
4) PAY IT FORWARD
stronger. My fellow shareholders, I ask that you continue
on this journey with us as we persist in accelerating to a
As a major regional player, our success comes with a
new frontier in 2024.
tremendous responsibility to support the citizens and
communities that we serve. Since the onset of the
pandemic, we have engaged in several initiatives to
provide this kind of support. These include:
►► NCBJ responded quickly with loan and credit

Patrick A. Hylton, OJ, CD, LL. D (Hon.)
card payment holidays for our personal banking
President and Group Chief
customers and loan moratoriums for our business
Executive Officer, NCBFG

A CCEL ERATE
Performance
Highlights
BY GEOGRAPHICAL SEGMENTS
Revenues by geographical segments
DUTCH
JAMAICA ANTILLES OTHER
TRINIDAD
J$99.3B & TOBAGO J$43.7B BERMUDA J$34.5B
2020
J$67.1B 2020
J$12.3B 2020
2020 2020
2019 2019 2019
J$100.7B J$17.5B J$16.9B
2019 2019
J$24.5B J$11.5B
Total assets by geographical segments
DUTCH
JAMAICA ANTILLES OTHER
TRINIDAD
J$955.7B & TOBAGO J$170.4B BERMUDA J$224.7B
2020
J$246.6B 2020
J$202.7B 2020
2020 2020
2019 2019 2019
J$932.3B J$147.2B J$152.5B
2019 2019
J$214.9B J$169.4B
AC C EL ER ATE 50
Allison Wynter Dave Garcia
Management
Team
The leaders of the NCB Financial Group
work together towards a common
goal of creating stakeholder value
and building a world-class Caribbean
financial ecosystem. [for more info - www.
myncb.com]
Mukisa Ricketts
+ 6
Mute Stop Video Invite Participants
Allison Wynter Dave L. Garcia Mukisa Ricketts

Group Chief Risk Officer Group General Counsel and Group Chief Audit Executive
Corporate Secretary
Allison is responsible for the Dave provides the Group with general Mukisa provides strategic direction and
identification, assessment, measurement, advice, leadership and direction on legal, oversight of the internal audit activities
monitoring and management of the regulatory governance and corporate for the Group. In this role, she facilitates
principal risks faced by the Group, with secretarial matters while maintaining transparency of the Group’s operations
particular emphasis on credit, market, effective relationships with relevant through independent and objective
liquidity and operational risks. stakeholders. He is charged with guiding assurance on the effectiveness of the risk
the Group’s legal strategy and the management and governance processes
ongoing development and monitoring and the internal control environment.
of its governance framework while
ensuring the appropriate oversight and
management of legal risk.

Dennis Cohen Misheca Senior
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Dennis Cohen Misheca Seymour Senior Patrick Hylton

Group Chief Financial Officer and Group Chief Compliance Officer President and
Deputy Chief Executive Officer Group Chief Executive Officer
Dennis provides leadership and oversight Misheca leads the Group Compliance Unit, Patrick provides strategic leadership to all
for the Group’s financial planning and and is responsible for the development, entities within the Group. He is responsible
reporting. He is also responsible for implementation and effectiveness of the for its strategic development, ensuring that
monitoring the Group’s performance Group’s compliance programmes. She its sales, service and risk management
against strategy and budget, in addition focusses on ensuring that appropriate goals are appropriately set and achieved.
to overseeing the Group’s Transformation measures are maintained to combat money
Office, Investor Relations function and laundering, financing of terrorism and
several other key business segments. proliferation financing, while monitoring
and ensuring overall compliance with
regulations relevant to the Group.
See the complete profiles for the Management Team at www.myncb.com
AC C EL ER ATE 52
Management Discussion
& Analysis
Even the best vision requires both foresight

and hindsight. Always look back for the
lessons from your journey and use your
learnings to pave the way forward.

57 Executive Summary 95 CEO’s Message - GHL

61 Financial Snapshot 99 Our Business Operations
65 Our Operating Environment 115 Our Business Enablers
73 Our Financial Performance 125 Our Risk Management and Governance
91 CEO’s Message - NCBJ 131 Our Strategic Outlook
93 CEO’s Message - Clarien 135 Corporate Social Responsibility
AC C EL ER ATE 54
STRATEGIC
PRIORITY
01
ACCEL ERATE
Strong
Financial
Performance

It doesn’t matter how much the route changes – hitting the

brakes will never get you any closer to the finish line. The
journey is ultra-competitive, with high financial stakes; so
our focus and efforts must be equally unrelenting.
AC C EL ER ATE 56
MD&A
Executive
Summary
The management of were prepared in accordance with

the International Financial Report
NCB Financial Group Standards (IFRS) as issued by the
International Accounting Standards
Corporate
Limited (“NCBFG”
or “the Company”)
Board (IASB).
Overview
The MD&A may contain forward-
and its subsidiaries looking statements. These statements
(hereafter referred may include the words “believe”,
NCBFG is the non-operating financial
“expect”, “intend”, “plan”, “estimate”,
to as “the NCB “may”, and similar expressions as well
holding company for three direct
subsidiaries, namely: National
Financial Group”, as statements other than statements
Commercial Bank Jamaica Limited
of historical facts including, without
“the Group”, “we”, limitation, those regarding the business
(“NCBJ”), NCB Global Holdings
Limited (“NCBGH”) and Clarien Group
“our” or “our strategy, plans, targets, 2021 outlook,
Limited (“CGL”). NCB Financial Group
2024 strategic plan, expectations
organisation”) is related to general economic
operates in the financial services
industry, providing products and
responsible for conditions, market trends, anticipated
services in banking, insurance and
impact on business segments and
the integrity and objectives of the Management of
investment management through 21
territories across the Caribbean. The
NCBFG for future operations. Forward-
objectivity of the looking statements are subject
NCB Financial Group is also one of
information contained to uncertainty and uncertainties
the largest financial conglomerates
in Jamaica and the Caribbean,
that may substantially differentiate
in this Management actual results from forward-looking
measured by profitability and total
assets.
Discussion and statements. These statements are
not guarantees of future performance
Analysis (“MD&A”). and undue reliance should not be
Through seven business segments,
a wide range of products and
placed on them. Although forward-
The financial data presented in this services are offered to customers.
looking statements contained in this
MD&A is constructed upon the These products and services include
MD&A are based upon what the
informed judgment of management loans, deposits, electronic banking,
Management of NCBFG believes
with proper consideration given to payment services, structured finance,
are reasonable assumptions, there
materiality. Management maintains an trade finance, foreign exchange,
can be no assurance that forward-
accounting and reporting framework wealth management, pension fund
looking statements will prove to be
which includes the internal controls management, annuities, trust and
accurate, as actual results and future
required to ensure that transactions general, health & life insurance
events could differ materially from
are properly maintained and recorded, services. Customers may also gain
those anticipated in such statements.
that assets are secured from access to our products and services
NCBFG undertakes no obligation to
unauthorised use and that disposal via our online platforms or mobile
update forward-looking statements
of assets and liabilities are fully apps. Self-service Jamaican banking
if circumstances or Management’s
recognised. Importantly, the efficacy options are also available via digital
estimates or opinions should change.
of this control mechanism is regularly channels accessible through financial
All sums are represented in Jamaican
monitored and supported by written kiosks and Intelligent ABMs at our
dollars, unless otherwise stated.
policies and instructions, trained staff, Bank on the Go locations. NCBFG
strong internal audit and procedures remains committed to delivering
for risk assessment. superior value for customers through
various digital channels to ensure a
The MD&A is written to allow the delightful customer experience.
reader to have a guided approach
towards comparing the financial NCBFG is listed on both the
performance of the Group for the Jamaica and Trinidad & Tobago
year ended September 30, 2020 with Stock Exchanges. More details on
prior performance. The MD&A is to be the Company may be found on our
read in conjunction with the audited website at www.myncb.com.
consolidated financial statements and
related notes. The financial statements

CONTINUED
DIRECT SUBSIDIARIES OF NCB FINANCIAL GROUP LIMITED

SUBSIDIARY PRINCIPAL ACTIVITIES PERCENTAGE OWNERSHIP
Banking, investment
50.10
and trust services
institution (“DTI”) licensed under the
Banking Services Act and is regulated
Commercial banking 100 by the Bank of Jamaica (“BOJ”).
NCBJ and its subsidiaries continue
to be the largest and most profitable
Holding company 100 banking and financial services group
in Jamaica based on net profit and
total assets. NCBJ and its subsidiaries
The full list of subsidiaries can be found in note #1 of the financial statements, pages 174 - 175.
operate primarily in Jamaica; however,
banking, wealth management and
by the Bermuda Monetary Authority
Clarien Group Limited to conduct banking, investments and
other financial services are also
offered in the Cayman Islands,
trust business for Bermudian and Trinidad & Tobago, and Barbados.
Clarien, one of Bermuda’s largest international clients. The Clarien Group
independent integrated financial serves its customers through four
services organisations, boasts more primary channels: 1) Personal Banking,
than eight decades of banking 2) Commercial Banking, 3) Private NCB Global Holdings
experience in the financial services Banking and 4) Asset Management. Limited
industry in Bermuda. In December
2017, NCBFG acquired a 50.1% NCBGH, a wholly owned subsidiary
equity stake in CGL. With this National Commercial of NCBFG, is incorporated in Trinidad
partnership in place, the Clarien Group Bank Jamaica Limited and Tobago as a holding company
is well positioned to become a regional and owns a 61.967% equity stake in
leader in financial services and wealth Guardian Holdings Limited (“GHL”).
management. Clarien Bank Limited, a NCBJ, a wholly owned subsidiary of GHL is a non-operating parent
major subsidiary of CGL, is licensed NCBFG, is a registered deposit-taking company for the Guardian Group.
NCBFG BUSINESS SEGMENTS
OPERATING ACTIVITIES SEGMENTS SUBSIDIARY*
Consumer & SME Banking

NCBJ and its wholly owned commercial banking
Payment Services
subsidiary
Corporate & Commercial Banking
Commercial banking subsidiary of CGL
Treasury & Correspondent Banking
Banking and Investment Activities
Wealth, securities dealing, brokerage, investment
& asset management subsidiaries of NCBJ
Wealth, Asset Management &
Investment Banking Investment management subsidiary of CGL
Asset management subsidiaries of GHL
Life insurance and pension fund management

Life & Health Insurance & Pension Fund subsidiary of NCBJ1
Insurance Activities Management
Life and health insurance subsidiaries of GHL
General Insurance Property and casualty insurance subsidiaries of GHL
Other Other All other subsidiaries not named above
*
The full list of subsidiaries and principal activities can be found in note #1 of the financial statements, pages 173 - 366.
1
At the end of September 2020, NCBJ’s wholly owned subsidiary, NCB Insurance Company Limited (“NCBIC”) transferred 100% of its portfolio of insurance and annuities business to GHL’s wholly owned
subsidiary, Guardian Life Limited (“GLL”). NCBIC also completed its registration as an insurance agent under the Insurance Act under a new company name – NCB Insurance Agency and Fund Managers
Limited (“NCBIAFM”). Consequent on the change in the company’s registration, effective October 1, 2020 NCBIAFM (formerly known as NCBIC) no longer operates as an insurance underwriter but sells
insurance products as an exclusive agent of GLL in addition to continuing to operate its business as a pension fund administrator and investment manager.
AC C EL ER ATE 58
MD&A
Executive
Summary CONTINUED
TABLES 1 & 2 PROVIDE THE MOST RECENT PUBLIC RATINGS FOR NCBFG AND ITS MAIN SUBSIDIARIES.
TABLE 1 NCBFG RATING

RATING AGENCY TYPE OF RATING RATINGS ASSIGNED OUTLOOK
CariA+ (local currency)

Regional Scale
Issuer/Corporate CariA (foreign currency)
CariCRIS2 Stable
Credit Rating jmAAA (local currency)
National Scale
jmAA+ (foreign currency)
Source: Caribbean Information & Credit Rating Services Limited (“CariCRIS”) Rating Release – NCB Financial Group Limited, December 10, 2020
TABLE 2 SUBSIDIARY RATINGS

RATING AGENCY /
SUBSIDIARY RATING TYPE OR RATINGS ASSIGNED OUTLOOK
INSTRUMENT RATED
CariA (local currency)

CariCRIS – USD 75 Regional Scale
million Debt issue CariA- (foreign currency) Stable
(notional)
National Scale jmAA+ (local currency)
Long-term Issuer Default Ratings

‘B+’ (foreign and local currency)
(IDRs)
NCBJ
Short-term IDRs ‘B’ (foreign and local currency)
Fitch Ratings Negative
Viability Rating ‘b+’
Support Rating ‘4’
Support Rating Floor ‘B+’
S&P Global Ratings Issuer Credit Rating B+/Negative/B Negative
NCB Capital Markets Regional Scale CariA- (local currency)

Stable
Limited National Scale jmAA- (local currency)
CariCRIS - Issuer/
NCB (Cayman) Limited Corporate Credit Rating Regional Scale CariA (foreign and local currency) Stable
NCB Capital Markets

Regional Scale CariBBB- (foreign and local currency) Positive
(Barbados) Limited
Financial Strength Rating B (Fair)

NCBIC Negative
Long-term Issuer Credit Rating Bb (Fair)
GHL (Insurance
Long-term Issuer Credit Rating bbb- (Good) Negative
composite) (T&T)
AM Best Financial Strength Rating A- (Excellent)
Guardian General
Negative
Insurance Limited (T&T) Long-term Issuer Credit Rating a- (Excellent)
Financial Strength Rating A- (Excellent)

Guardian Life of the
Negative
Caribbean (T&T)
Long-term Issuer Credit Rating a- (Excellent)

CONTINUED
The Guardian Group is a leading relevant governments would provide satisfaction, customer loyalty, sales
insurance provider with its operations meaningful support to our organisation effectiveness, innovation, product
spanning 21 territories across in a crisis; our various risk exposures penetration, efficiency improvements,
the English and Dutch speaking and risk management policies; our branch optimisation, employee
Caribbean, including Jamaica, Trinidad reputation; diversity of funding sources engagement, organisational health,
and Tobago, Barbados, Curacao, and funding costs; the current and regional expansion, corporate
Aruba, St. Maarten and Bonaire. The expected level and volatility of our governance, corporate social
Guardian Group offers world-class earnings; our capital position and responsibility and community
products and services in life and capital management practices; and involvement.
health insurance, asset management, our corporate governance. The rating
trust services and general insurance agency can adjust the rating at any Our senior and executive management
through several subsidiaries across the time and they provide no assertions teams monitor some performance
Caribbean. about the maintenance of the rating metrics and forecasts performance
at current levels. Our organisation on a weekly basis to proactively
maintains active discourse with these manage the business and our overall
Credit Ratings major rating agencies and it is our performance is assessed as frequently
objective to preserve high-quality as required to respond to changes in
Each year, the Group and its credit ratings through outstanding our environment.
subsidiaries are rated by independent financial performance.
international and regional rating The performance reports include
agencies. These ratings provide forward looking projections to
an independent assessment of Performance ensure prudent and timely decision
the Company’s or its subsidiaries’ Measurement making. Additionally, forecasting and
financial strength and credit quality. planning is done each year to assist
Rating agencies develop distinctive Strategic plans are established with the leadership team in effectively
methodologies that guide their defined performance metrics for managing the business. We actively
assessment and evaluation of our the Group which are then devolved pursue our strategic imperatives
companies. to the business units, responsible and review outcomes using defined
executive and individual employee strategic measures to ensure
The opinions expressed by rating levels. The Group is measured against alignment with the overall mission of
agencies on our creditworthiness and internal targets along with country the organisation.
that of our obligations or securities specific, regional and international
(including long-term debt, short-term benchmarks. We are constantly We intensified our monitoring
borrowings, and asset securitisations) challenging ourselves to exceed prior mechanisms and included frequent
are based on independent analyses performance and strive for excellence. stress testing and scenario planning
and financial modelling. Our credit We monitor various aspects of our during the 2020 financial year due
rating is subject to review by each performance on either a daily, weekly, to the impact of COVID-19 on the
rating agency where a number of monthly, quarterly or annual basis. Group. The pandemic caused a
quantitative and qualitative factors We are constantly monitoring our contraction of global economies and
are considered; including financial strategy, using financial and non- impacted major territories in which
strength, performance, prospects, financial measures to cover all areas the Group operates. We conducted
operations, asset quality, capitalisation of our performance to ensure we analyses and assessed the impact on
and liquidity position as well as factors deliver or exceed the expected results our operating environment, the Group,
not under our control. Other factors for the benefit of all our stakeholders, our customers, and our employees.
that influence our credit ratings including customers, employees and We made adjustments, where
include changes to the rating agency’s shareholders. Our financial measures required, to our operations to adjust
methodologies; the rating agency’s include quantitative targets for net to the changes in the environment
assessment of the general operating profit, revenue, cost optimisation, and added additional measures,
environment for financial services digitisation, core balance sheet where appropriate, to enhance the
companies; our relative position in portfolios, return on assets, return performance management of the
the industry; the sovereign credit on equity, market share, capital Group.
rating of the relevant governments management and strength, liquidity,
where we operate and/or have risk management and operating
significant exposure; current or future efficiency. Our non-financial targets
regulatory and legislative initiatives; include objectives in the areas
the agency’s views on whether the of customer service, customer
AC C EL ER ATE 60
MD&A
Financial
Snapshot
TABLE 3: FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA

For the year ended September 30
% Change Five-year
Financial compounded
Restated
(in millions, except per stock unit amounts) 2016 2017 2018 2020 Year 2020 vs. annual
2019
Financial Year growth rate
2019 (CAGR)
Consolidated Income Statement Extract
Banking & Investment Activities
Net interest income 28,124 29,760 35,144 44,595 52,490 18% 15%
Credit impairment losses (612) (729) (1,961) (4,825) (10,285) 113% 40%
Net interest income, net of impairments 27,511 29,030 33,184 39,770 42,205 6% 12%
Net fee & commission 10,889 13,816 15,864 19,180 21,369 11% 17%
Gain on foreign currency and investment activities 4,736 7,726 15,611 15,412 8,793 (43%) 19%
Net result from banking & investment activities 43,423 51,097 65,818 76,749 76,371 (0.5%) 15%
Insurance Activities
Premium Income 7,992 8,116 9,485 60,619 135,202 123% 78%
Insurance Ceded to Reinsurers (511) (542) (823) (16,058) (42,004) 162% 145%
Reinsurance Commission Income 53 75 97 3,594 8,471 136% 147%
Net underwriting income 7,534 7,648 8,759 48,155 101,669 111% 70%
Policyholders’ & annuitants’ benefits & reserves and other

insurance related expenses (4,021) (4,408) (4,962) (33,723) (69,213) 105% 83%
Net result from insurance operations 3,513 3,240 3,797 14,432 32,456 125% 55%
Operating income 46,936 54,337 69,615 91,181 108,827 19% 21%
Staff costs 13,809 16,461 23,776 32,121 40,527 26% 28%

Other operating expenses, including depreciation &
amortisation and finance cost 15,031 16,717 19,652 32,616 41,039 26% 25%
Net profit 14,449 19,108 28,581 31,165 26,883 (14%) 17%

Net profit attributable to stockholders of the parent 14,449 19,108 27,959 29,869 19,090 (36%) 9%
Earnings per stock unit ($) 5.87 7.76 11.39 12.30 8.01 (35%) 10%
Dividends paid per stock unit ($) 2.35 2.70 2.70 3.40 1.90 (44%) (4%)
Consolidated Statement of Financial Position Extract (at year end)

Investment securities 275,670 299,177 389,490 759,496 853,086 12% 25%
Net loans 189,056 218,615 372,635 423,103 452,955 7% 22%
Total assets 607,669 693,724 978,585 1,616,[300 1,800,260 11% 28%
Customer deposits 273,966 288,464 484,848 504,679 573,969 14% 20%
Repurchase agreements 105,975 115,587 152,885 174,620 211,436 21% 16%
Liabilities under annuity and insurance contracts 35,283 36,185 38,093 394,615 405,015 3% 63%
Other borrowed funds 12,061 38,650 65,559 124,953 125,066 0% 71%
Equity 103,105 115,994 139,584 183,871 200,205 9% 18%
Equity attributable to stocholders of the parent 103,105 115,994 130,041 147,590 156,115 6% 12%

CONTINUED
TABLE 4: KEY RATIOS AND PER STOCK UNIT DATA

Year ended September 30
2016 2017 2018 2019 2020
Profitability ratios
Return on average total assets 2.55% 2.94% 3.42% 2.40% 1.57%
Return on average equity 15.09% 17.44% 22.73% 21.52% 12.57%
Net results from banking & investment activities to operating income 92.52% 94.04% 94.55% 84.17% 70.18%
Net insurance results to operating income 7.48% 5.96% 5.45% 15.83% 29.82%
Cost to income ratio 60.65% 60.25% 60.68% 67.43% 68.48%
Insurance loss ratio 50.47% 55.19% 54.62% 61.28% 60.31%
Per stock unit data

Dividend payout ratio (based on payment date) 40.03% 34.79% 23.71% 27.64% 23.72%
Dividend yield 5.66% 3.10% 2.17% 1.63% 1.45%
Book value (J$) 41.89 47.12 52.74 61.60 65.82
Market Price - Jamaica Stock Exchange (JSE)
High J$45.00 J$94.99 J$130.00 J$249.00 J$215.00
Low J$27.50 J$58.50 J$84.01 J$110.11 J$130.00
Year end - close J$41.55 J$87.02 J$124.52 J$208.79 J$130.90
Market Price - Trinidad and Tobago (TTSE)
High TT$2.85 TT$5.25 TT$6.75 TT$10.71 TT$11.50
Low TT$1.67 TT$2.58 TT$5.05 TT$5.73 TT$7.15
Year end - close TT$2.60 TT$5.10 TT$5.73 TT$10.44 TT$7.75
our goals by the development of an organisation.

2020 several strategic initiatives through
the collaboration of team members
3. Delighted customers – being
the preferred and most trusted
Performance across the organisation. Our new
strategy seeks to strengthen the
financial partner for customers
across segments.
Overview Group’s position as we fully integrate

our subsidiaries to create a regional 4. Digital to the core – operating
financial ecosystem to provide world- a world-class technology and
class products and services. This new analytics platform that enables
Following the attainment of the main aspiration is anchored by four pillars: fast, simple, intuitive, secure,
targets set under our strategic plan, stable and delightful digital first
NCB 2.0 by 2020, faster | simpler 1. Strong financial performance experiences for customers and
| stronger, ahead of schedule, we – delivering world-class growth, employees.
embarked on a new and exciting efficiency, return on assets and
transformation journey to drive return on equity. In the wake of the COVID-19
financial value, improve customer pandemic and the resultant adverse
experience and satisfaction and 2. Inspired people and culture – impacts on health, society and the
boost organisational health across becoming the employer of choice, economy, we are steering through
the Group. The implementation of our with strong organisational health, unchartered waters. The Group
NCB Accelerate 2024 Programme and a place where each employee navigated challenges to bridge the
provides a roadmap to meeting is proud to be a part of the team gaps in financial performance while
and committed to our success as remaining resolute in providing
unwavering support to customers and
AC C EL ER ATE 62
MD&A
Financial
Snapshot CONTINUED
employees. This resilience reinforced agent to GLL in addition to continuing

the Group’s commitment to remain to operate its business as a pension
focussed on our strategy and sought JAMAICA fund management administrator and
to capitalise on the opportunities investment manager. This change
presented by this unprecedented to the Jamaican insurance business
experience and build on the Investments to upgrade core systems allows the Group to benefit from
capabilities necessary to evolve and and the technology infrastructure economies of scale and experience
thrive in this new reality. across our Jamaican entities have while continuing to optimise product
positioned us to improve operational and service offerings for our
During the year, we continued to efficiency while enhancing value customers.
enhance customer experience, creation. Our strides in digitalisation
improve operational efficiency and allowed us the flexibility to respond
develop our digital capabilities, to the wide-reaching impact of
while safeguarding the health, well- COVID-19. The ensuing government BERMUDA
being and economic interests of our mandated curfews and lockdowns
stakeholders. in an effort to curb the spread of the
virus following its onset resulted in Our establishment of a solid foothold
Within the context of the pandemic’s reduced operating hours and limited in the investment-grade Bermudian
devastating impact on the regional and physical customer and employee financial market through our
global economies, the Group recorded interactions. Though the pandemic majority ownership of the Clarien
a solid performance for the financial has been a defining moment for digital Group has supported our goals of
year. NCB Financial Group Limited transformation, our investments in diversification and enhanced financial
reported consolidated net profit of digital over the years allowed us to performance. Bermuda’s economy
$26.9 billion and net profit attributable be prepared to actively respond to is heavily dependent on tourism
to stockholders of the parent of $19.1 the crisis. Our improved platforms and was particularly impacted by
billion, a 36% or $10.8 billion decrease were available to empower customers the COVID-19 pandemic including
when compared to the restated prior to navigate the shifts in operations government mandated lockdowns
year. It should be noted the 2020 and successfully transition to digital and travel restrictions in an attempt to
financial performance includes a full channels to access relevant products curtail the spread of the virus. Despite
year of GHL’s results as opposed to and services. We intend to continue the economic fallout caused by the
only five months in the 2019 financial the promotion of the use of our online COVID-19 pandemic, the country
year. Additionally, the prior year’s and digital platforms so that we may remains an investment grade territory
results included one-off gains totalling reduce transaction times and improve with a stable outlook and we believe
$8.2 billion, comprising $3.3 billion efficiency. We remain committed that we can continue to develop
from the disposal of an associate, to expanding our digital solutions opportunities and growth both
$2.3 billion from the revaluation of to sustainably meet and exceed within Bermuda and the Caribbean.
our interest in GHL and $2.6 billion consumer expectations. We have embraced the new norms
from the disposal of a subsidiary. On brought on by the pandemic and
a normalised basis excluding these We streamlined our insurance the evolving needs of our customers
one-off gains, the profit attributable business through the transfer of 100% served through our Bermudian entity.
to stockholders of the parent would of NCBIC’s portfolio of insurance and This resulted in the launch of Clarien
have declined by $2.5 billion or 12% annuities business to fellow subsidiary, iInvest – Bermuda’s first and only
from the prior year. Our asset base GLL, effective September 30, 2020. robo-advisory solution. This digital
increased by 11% or $184.0 billion to NCBIC also completed its registration platform provides online investment
$1.8 trillion primarily due to increases as an insurance agent under the advice and management to customers
in investment securities, net loans and Insurance Act under a new company with moderate to minimal human
amounts due from banks. However, name – NCB Insurance Agency and intervention as we use technology
the growth in the asset base coupled Fund Managers Limited (“NCBIAFM”). to build low-cost, individualised
with lower net profits resulted in return Consequent on the change in the portfolios to help them create wealth.
on average assets of 1.57% compared company’s registration, effective We are committed to providing
to 2.40% in the prior financial year. October 1, 2020 NCBIAFM (formerly superior internal and external digital
Equity attributable to shareholders of known as NCBIC) no longer operates experiences while developing the
the company increased by 6% or $8.5 as an insurance underwriter but sells opportunities within the market and
billion to $156.1 billion with return insurance products as an exclusive across the organisation.
on average equity of 12.57% (2019:
21.52%).

CONTINUED
GEOGRAPHICAL COMPOSITION OF OPERATING INCOME
TRINIDAD & TOBAGO AND

THE EASTERN CARIBBEAN
17% DUTCH 13%
CARIBBEAN OTHER
The 2020 financial year marked the
first full year of the consolidation
of GHL’s performance. Though we 5%
previously had a presence in Trinidad BERMUDA
& Tobago and Barbados through
our wealth, asset management and
investment banking subsidiaries, NCB
Capital Markets (Barbados) Limited
and NCB Global Finance Limited,
the acquisition of GHL reinforced
our footprint with the Caribbean. 26% TRINIDAD
& TOBAGO
These Caribbean territories have
been particularly vulnerable to the
effects of the coronavirus given the
heavy dependency on tourism and 39%
JAMAICA
exports. However, we remain steadfast
in leveraging our market reach and
innovative products and services to
capitalise on opportunities to provide
customers with a full suite of financial
and insurance services. To this end
we have launched full-scale efforts
to develop our transformation plan
through the launch of initiatives to
drive improvements throughout the
respective territories. The solutions will
be tailored to provide value creation to
surpass customer expectations while
improving efficiency.
AC C EL ER ATE 64
MD&A
Operating
Environment
Most countries across NCBFG’s operating environment entered 2020

coming off the heels of strong economic performance and improved
fiscal positions; however, the COVID-19 pandemic altered this dynamic.
Jamaica and Barbados had made good progress in terms of their fiscal
programmes with Jamaica terminating its programme with the International
Monetary Fund (IMF), and Barbados meeting all its benchmarks. All countries,
except for Trinidad & Tobago (T&T) and Barbados which contracted, saw their
economies expand aided by a favourable external environment.

CONTINUED
TABLE 1 Regional Economic Growth & Inflation
However, the economic and social PERIOD BARBADOS BERMUDA CAYMAN JAMAICA T&T
disruption caused by the COVID-19
pandemic sparked widespread GDP Growth
economic contraction, increased 2019 -0.1% 0.5% 3.2% 0.9% -0.1%
government spending, lowered
fiscal revenues, and eroded buffers. YTD 2020 -16.3%1 -2.8%2 1.9%3 -11.3%4 -5.9%5
Sovereign debt levels have also 2020F -11.6% -1.5% -7.8% -10% to -12% -5.6%
increased substantially due to
2021F 2.7% 0.7% 1.7% 3% to 8% 3.1%
depreciating currencies and/or
increased borrowing in the wake of the Inflation
decline in revenues. Further, in their 2020 6
1.9% -0.7%7 3.0%8 5.0%9 0.4%10
attempt to boost economic activity,
preserve price, foreign exchange and Sources: Bermuda Government, Statin, Fitch Solutions, IMF, BOJ, ESO (2020)
financial system stability, regional
central banks implemented various
accommodative monetary policy
of termination, it had notably realized supply disruptions offset gains from
measures. Despite the widespread
19 consecutive quarters of economic British Petroleum T&T’s new Angelin
contraction witnessed in 2020, a
growth, significantly reduced its debt Platform12.
gradual recovery is expected in
to GDP ratio to 94.4%, and built up
2021 as the pending distribution
a primary surplus that was 7.5% of However, since COVID-19 arrived
of COVID-19 vaccines is helping to
GDP.11 Jamaica was also on track to on the shores of Caribbean
dissipate the cloud of uncertainty over
reduce its indebtedness below the countries, economic conditions have
the regional economic outlook.
90% mark at the end of 2020/21 deteriorated due to the fear and panic
fiscal year. Similarly, in pursuance of it infused and counteractive measures
fiscal consolidation and enhanced implemented by governments. These
economic performance, Barbados measures, for the most part, restricted
met all quantitative performance the movement of people, business
MACROECONOMIC criteria, indicative targets, and activities and weighed on consumer
PERFORMANCE AND structural benchmarks in the IMF’s and business confidence. NCBFG’s
COVID-19 IMPACT Barbados Economic Recovery and operating territories experienced
Transformation (BERT) programme. economic contractions between
The Cayman Islands sustained its January and September 2020, with
positive performance and had the the Cayman Islands being the only
highest growth rate (3.2%) and the exception (see Table 1). It should be
lowest debt to GDP ratio (5.7%) noted that Cayman’s latest reported
Overview among all NCBFG’s operating data was for Q1 2020 and would not
territories in 2019. Bermuda’s have reflected the full impact of the
The first quarter of our 2019/2020 economy grew at a rate of 0.5% pandemic and the restrictions that
financial year, and 2019 in general, supported by construction work, and were implemented in March 2020.
proved to be a good one for most of the government held the second- Cayman’s economic diversification
our operating territories with significant lowest debt to GDP ratio of 36.8%. provided some buffer against the early
gains made on the economic front Contrastingly, T&T’s economy effects of the pandemic and it realized
and in fiscal performance. Jamaica contracted and registered an increase an expansion in its construction,
successfully ended its Extended Fund in debt to 73.4% of GDP, as its crude electricity and water supply, real
Facility (EFF) arrangement with the IMF oil production continued to fall, and estate, and financial services13 sectors
on November 10, 2019. At the point maintenance-related outages and in Q1. However, it was not totally
1: Represents growth for the first nine months of 2020. 7: Twelve months point-to-point for August 2020. 12: The new platform, BPTT’s 15th installation offshore
2: Represents growth for Q1 2020. 8: Reported at the end of Q1 2020. Trinidad & Tobago, has a production capacity of
600 million standard cubic feet a day (mmscfd).
3: Represents growth recorded in Q1 2020. 9: Twelve months point-to-point for October 2020.
13: The financial services sector is the largest contributor
4: Represents growth for the first nine months of 2020. 10: Twelve months point-to-point for March 2020. to GDP with 30.4% at the end of 2019.
5: Represents growth recorded in the first half of 2020. 11: These metrics reflect Jamaica’s position at the end
6: Twelve months point-to-point for July 2020. of 2018/19FY before the IMF programme ended.
AC C EL ER ATE 66
MD&A
Operating
Environment CONTINUED
FIGURE GDP Growth

Figure 1:1GDP Growth Accross Across
NCBFG’s NCBFG’s Operating Territories
Operating Territories
3.50% and the effects of what was the most

1.50%
active hurricane season. Tourism
dependent nations are projected
-0.50% to register the largest economic
2019 2021F
deterioration for 2020, between 10%
GDP Growth Rate
2020F
-2.50%
and 12%, as key source markets
-4.50% contend with a second wave of the
virus, re-imposition of lockdown
-6.50%
measures, elevated unemployment,
-8.50% and slower economic activity. The
recently concluded Atlantic hurricane
-10.50%
season also proved to be a disruptive
-12.50% force, being the most active and
seventh costliest on record. While
Cayman Barbados Bermuda Jamaica Trinidad & Tobago none of NCBFG’s operating territories
suffered a direct impact, the deluge
that accompanied a number of the
systems inflicted severe damage to
immune to the impact as there was have reduced the demand for oil infrastructure and caused economic
a fall in the hotels and restaurants and natural gases. This along with dislocations in the territories affected.
sector reflecting the closure of failed agreements on production For example, in Jamaica, the damage
Cayman’s borders in the latter half cuts have kept prices well below to crops and delays it caused in
of March 2020 and it is believed to the 2018 and 2019 averages, which farmers’ replanting efforts will likely
have continued through 2020. Unlike negatively impacted the real output result in a decline in agricultural output
Cayman, countries such as Jamaica of T&T’s energy sector. Across the and a steeper economic contraction
and Barbados contracted by double region, local containment measures thereby adding more downside risks
digits, 11.3% and 16.3%, respectively, that caused businesses to reduce to the economic outlook.
as border closures brought tourism, operating hours, schools to close,
an economic staple for most of the organisations to implement work from In 2021 a gradual recovery in
countries in the region14, to a grinding home policies, and limit face-to-face economic growth is projected,
halt in Q2. Consequently, there was a patronage also weighed on economic supported by an improvement in
reduction in employment, disposable performance. To counter some of the global economy influenced
income and output in a number of the negative effects, there was a by the distribution of COVID-19
sectors. Although borders were swift implementation of targeted vaccines. The speed of the roll-
reopened for much of Q3, output from fiscal, monetary and financial stability out of the vaccines will, however,
the tourism sector remained muted measures to reduce contagion be dependent on how quickly they
given fears of travel and depressed effects, support disrupted markets, are manufactured and distributed.
disposable incomes as the pandemic and protect financially impacted Producing and distributing vaccines
also weighed on the economies of households and businesses. will take months, with average
our major trading partners. Overall, Americans not expected to receive
output from the tourism sector The IMF projects that Latin America their doses until at least mid - or late
declined by 66% and 53.3%, in and the Caribbean will contract by 2021.15 If the vaccination programme
Barbados and Jamaica, respectively, 8.1% in 2020 but expand by 3.6% in goes according to plan and there is
during the first nine months of 2020. 2021. Economic output from NCBFG’s a recovery in major trading partners,
Further, travel restrictions in the wake key operating territories is projected to all countries across the region will
of the pandemic and lower activity decline in 2020 (see figure 1) as they benefit, increasing the likelihood
in the productive sectors globally continue to grapple with the pandemic
14: Tourism accounts for 41.2% of GDP in Barbados

and around 75% of GDP in Jamaica.
15: Politico. “Here’s How the Pandemic Finally Ends”

CONTINUED
of growth within or above current accommodative monetary policy support. At the end of September
expectations (see table 1). Expansion measures such as policy rate cuts, 2020, Jamaica’s net international
in advanced economies would also reserve ratio reductions, and others, reserves amounted to US$2.75 billion
support recovery in tourism. However, to stimulate economic activity and (36.3 weeks of goods and service
considering the lingering fear that will sustain price stability during the imports), while Barbados’ stood at
surround international travel and the pandemic. BDS$1.56 billion. T&T drew down
anticipated gradual recovery in source from its Heritage Stabilization Fund
markets, international tourist arrivals Inflation is largely expected to to boost its gross official reserves,
are not expected to return to pre-crisis remain subdued as the effects of which amounted to US$7.44 billion
levels until 2023. That being said, the pandemic continue to depress (8.8 months of import cover) at the
increased global activity and travel commodity prices. However, recent end of August 2020. Contrary to
demand should support a rebound heavy rains and a sharp rise in the expectations, remittances (especially
in oil prices, positively affecting price of agricultural produce given the in Jamaica), proved to be resilient
exporting countries such as T&T. The fall in production could cause inflation and helped to temper some of the
prospects for recovery should also in Jamaica to temporarily rise to the negative pressures. Countries with
increase consumer and business top end or breach the upper end of floating and quasi-fixed regimes such
confidence, fueling investments in BOJ’s target range16. as Jamaica and T&T, respectively, saw
business expansion and employment. some depreciation in their domestic
However, based on forecasts made currencies17 relative to the US
by rating agencies, the IMF and other Foreign Exchange dollar. On the other hand, Cayman,
international bodies, most countries’ Bermuda, and Barbados were able to
gross domestic product (GDP) will not The decline in output from the maintain their currency pegs.
return to pre-pandemic levels until at biggest foreign currency earners
least 2023. such as the tourism and energy FX imbalance should lessen in the
sectors, constrained US dollar supply, coming year as economic recovery
which placed downward pressure begets higher US dollar supply and
Inflation on domestic currencies and incited should support a reduction in the level
more central bank intervention in of central bank intervention needed in
Inflation has remained low or foreign exchange (FX) markets. The the market. As real output from key
within countries’ prescribed target significant drop in foreign arrivals in FX generating sectors increases, there
range. Lower demand, global travel countries like Barbados and Jamaica should be a proportionate rise in FX
restrictions, subdued commodity, and the reduction in the export of inflows to support FX demand in the
and goods prices, and measures energy products from T&T reduced respective economies. This should
implemented to boost economic foreign currency earnings. Although allow central banks to replenish
activity created a low inflation the precipitous drop in global oil international reserves and reduce their
environment in 2020 (see table 1). prices reduced external vulnerability activity in FX markets. However, it is
T&T maintained low inflation due to and dampened the overall demand anticipated that the Central Bank of
muted energy prices, and international for the US Dollar for the oil-importing Trinidad and Tobago (CBTT) and BOJ
commodity prices which remained territories, this was not commensurate will use reserves and other tools to
low because of reduced demand to the fall in supply, which caused offset supply imbalances, if necessary.
associated with lower economic FX imbalance. Therefore, central
activity and income levels. In Bermuda, banks intervened with FX sales and
the contraction in rent, transport & other tools to promote FX liquidity in Monetary Policy
foreign travel, as well as the fuel and their respective markets. The BOJ
power segments resulted in prices estimated the fallout in FX inflows for In step with their peers across the
deflating by 0.7% for the 12 months FY 2020/21 to be US$800 million in a globe, regional central banks were
ended August 2020. Conversely, in best-case scenario and US$1.4 billion forced to enact accommodative
Jamaica inflation remained within in a worst-case scenario. By the end monetary policies in response to
or close to the Bank of Jamaica’s of NCBFG’s financial year, BOJ had the COVID-19 induced economic
(BOJ’s) 4% to 6% target range up to already provided US$700 million in FX contraction suffered by their countries.
the end of the financial year, owing liquidity through various measures. On March 17, 2020, the CBTT
to favourable external prices and Most governments accessed IMF lowered its benchmark repo rate
soft domestic demand. Throughout financing and tapped their international by 150 basis points (bps) to 3.5%
the region, central banks enacted reserve to provide foreign exchange and lowered its primary reserve
16: BOJ anticipates that inflation would be within

the 5.5% to 6.5% range in Q4 2020.
17: The Jamaican dollar depreciated by 4.9% and TTD by 0.2%
relative to the USD during the NCBFG’s 2019 financial year.
AC C EL ER ATE 68
MD&A
Operating
TABLE 2 Regional Fiscal Indicators
2019 2020F
PRIMARY BALANCE FISCAL BALANCE DEBT-TO-GDP PRIMARY BALANCE FISCAL BALANCE DEBT-TO-GDP
VARIABLES
(% OF GDP) (% OF GDP) (%) (% OF GDP) (% OF GDP) (%)
Barbados 3.8 2 119.5 -1.9 -4.8 150.6
Bermuda 1 -0.6 36.8 -1.8 -3.7 47.1
Cayman Islands 1.7 2 5.7 N/A -0.5 6.6
Jamaica18 7.1 0.9 94.4 3.1 -3.5 102.9
Trinidad & Tobago 0.6 -2.4 73.4 -5 -7.8 85.8
Source: The Ministry of Finance and the Public Service, ESO, Fitch Solutions, S&P Global Ratings, Government of the Republic of Trinidad & Tobago, Central Bank of Barbados, CDB
requirement by 3 percentage points 0.5%, and lowered both its foreign muted energy prices, and a positive
to 14%. This was intended to amplify and domestic currency cash reserve interest rate differential with the U.S,
liquidity in the short-run and allow for ratios by two percentage points each which should support monetary
a reduction in interest rate spreads to alleviate some of the excess FX easing.
by lowering commercial banks’ cost demand caused by the sharp fall-off
of funds. It was also motivated by in USD inflows and increase the funds
the need to stimulate the economy available for lending to households
given the unprecedented negative and businesses for consumption and
impact that the pandemic had on investment purposes.
real output because of the significant
FISCAL AND
drop in global energy prices. This Central banks across the region will DEBT DYNAMICS
was followed by the Central Bank likely maintain their accommodative
of Barbados (CBB) which lowered stance in 2021, as Caribbean
its bank discount rate19 from 7.0% economies are still ailing from the
to 2.0% on April 1, 2020. It also effects of COVID-19 and will need
reduced the securities reserve maximum monetary and fiscal support
ratio20 for commercial banks from to aid in a strong economic recovery. Prior to the onset of the
17.5% to 5.0% and eliminated the Fitch Solutions believes the CBTT
1.5% securities ratio for non-bank could lower its monetary policy rate COVID-19 pandemic,
deposit-taking licensees. These by an additional 50bps to 3.0% by the majority of NCBFG’s
actions were intended to support the the end of 2020, as rising COVID-19
domestic banking sector in the light cases locally and internationally operating territories
of the projected impact of COVID-19 deepen the country’s domestic
on the economy and the financial recession. This outlook is supported
recorded favourable
system. In Jamaica, the BOJ kept by the country’s low inflation due to fiscal performance
its policy rate at the historic low of (see Table 2).
18: This represents the values for FY2019/20 20: The securities reserve ratio (securities ratio) is
and the forecast is for FY2020/21. a reserve requirement specified by the Central
19: Rate at which it provides overnight lending to Bank of Barbados for deposit-taking institutions
banks and deposit-taking non-banks licensed (commercial banks, trust and finance companies
under the Financial Institutions Act. and merchant banks) to hold a precise percentage
of their domestic deposits in stipulated securities.

CONTINUED
Most countries registered a fiscal Lower revenues, increased spending and seek public-private partnerships
surplus as revenues outweighed on social safety nets, and fiscal for capital investment projects to
expenditures, with the exception of stimulus to stave off the worst effects boost their economies and improve
Trinidad and Tobago and Bermuda. of the pandemic are expected to drive their fiscal positions.
T&T recorded the highest fiscal deficit Jamaica’s lower fiscal outturn.
primarily due to falling natural gas and
crude oil prices. However, this was an Given that the pandemic impacted
improvement relative to the previous countries’ fiscal and economic
Stock Market Performance
year21. Despite recording the highest positions to varying degrees, the and Outlook
debt-to-GDP ratio, Barbados’ public actions taken by S&P showed no
finances strengthened due to the common directional trend during Reflecting the deterioration in the local
government’s fiscal austerity and the the period. While the rating agency and external environments caused
completion of its debt restructuring. affirmed both Bermuda’s (A+) and by the pandemic, stock markets
This enabled the country to have one Jamaica’s (B+) ratings, the outlook across the region declined during our
of the largest fiscal surpluses (2.0%) on the latter was revised to negative financial year. The Jamaica Combined
for that period. Also, on a positive from stable while the rating agency Index declined by 26.4%, a significant
note, Jamaica recorded the highest maintained its stable outlook on reversal from the 31.4% growth in
primary balance (7.1%) in FY 2020 Bermuda. The negative outlook the market in 2019. The onset of
owing to the fiscal discipline exhibited on Jamaica reflects the possibility COVID-19 in Jamaica on March 10
under the IMF sponsored economic that economic recovery could be fueled fear among investors, which
reform programme, which ended in weaker than expected in 2021, or caused a broad-based sell-off of
November 2019. the pandemic may be prolonged. On Jamaican equities. Most companies
a more negative note, S&P lowered with listed securities have reported
The COVID-19 pandemic has Trinidad and Tobago’s rating by one year-over-year contractions in
negatively impacted economic activity notch to ‘BBB-’ from ‘BBB’, with a earnings, and in some cases losses.
resulting in lower revenue flows, stable outlook. Lower oil and gas Despite the downturn in the market, a
higher expenditure, and a subsequent prices, and its material impact on total of nine companies successfully
deterioration in Caribbean countries’ government’s revenue and debt, raised equity financing to the tune of
fiscal and debt metrics. As shown in influenced the rating action. The about $52.81 billion, but with most of
Table 2, all the operating territories view also considers the economic these offerings done in the first half
are expected to experience a fiscal contraction in 2020 and the expected of our financial year, before the onset
deficit owing to the deterioration in fall in exports that will contribute to a of the COVID-19 pandemic. Among
revenue intake, increases in spending moderate current account deficit. these companies were Transjamaican
on relief measures, and other Highway Limited ($14.10 billion), First
expenses to cushion the effect of the The COVID-19 pandemic has been Rock Capital Holdings Limited ($2.59
pandemic on those most vulnerable. that tail risk event that has thrown billion), JMMB Group Limited ($19.05
Trinidad and Tobago is set to record the operating territories off their billion), Sagicor Select Funds Limited
the highest level of primary (-5.0%) path of fiscal recovery; however, Manufacturing & Distribution ($2.49
and fiscal (-7.8%) deficits, owing the demonstrated commitment to billion), Caribbean Assurance Brokers
to the ongoing volatility of energy fiscal consolidation and expected Limited ($100.27 million), Lumber
prices in international markets. The economic recovery should support Depot Limited ($169.49 million), and
deficit will be financed from external an improvement in fiscal performance Mailpac Group Limited ($495.00
and domestic sources. Barbados in 2021 and onwards. An uptick in million). That being said, after the
is expected to register the highest real output should contribute to a lull in market activity caused by the
debt-to-GDP ratio (150.6%), which rebound in government revenues, pandemic, Barita Investments Limited
will primarily be influenced by the while a gradual improvement in and Tropical Battery Company Limited
contraction in economic output. employment levels and reduced social were able to launch successful equity
Jamaica is expected to be the only spending should positively impact raises of $13.50 billion and $325.00
operating territory to run a primary fiscal balances. This will likely reduce million, respectively. The T&T and
surplus (3.1%) for 2020. However, this external and domestic financing Barbados markets also recorded
is well below levels recorded in recent needs, which would support a fall in contractions of 6.0% and 25.8%,
years and below the 5.4% target in the indebtedness. It is also expected that respectively in 2020. This reflects
government’s initial budget estimate some countries may reallocate, reduce the economic contraction brought
at the start of fiscal year 2020-21. or postpone non-essential expenditure on by COVID-19 in both countries,
21: Trinidad & Tobago’s fiscal deficit improved from 3.6%

of GDP in 2018 to 2.4% of GDP in 2019 while the
primary balance improved from -0.8% of GDP to 0.6%
of GDP due to a one-off payment of back taxes obtained
from a tax amnesty for income years 2013-2018.
AC C EL ER ATE 70
MD&A
Operating
TABLE 3 Regional Stock Market Performance positions of EM issuers. The JP

Morgan Emerging Market Bond Index
REGIONAL STOCK MARKETS PERFORMANCE 2019/2020 declined by 4.1% during the year, as
the pandemic emphasised the fragility
Jamaica Stock Exchange -26.4%
of emerging markets and sparked
Trinidad & Tobago Stock Exchange -6.0% a series of negative rating actions
on EM issuers. As the demand for
Barbados Stock Exchange -25.8%
EM bonds fell, prices declined and
Source: Jamaica, Barbados & T&T Stock Exchange, NCBCM Research yields rose during the February to
May period. This pattern was also
observed for a sample of the most
liquid bonds issued by sovereigns in
NCBFG’s operating territories (see
and its effects on listed companies. Source Company Limited (Fesco), figure 2). Yields rose to as high as
The fall-off in the performance of the Proven Investments Limited, and the 6.6% for the JAMAN 2028 bonds,
Barbadian stock market could also RJR Gleaner Communications Group 6.2% for the Tritob 2026 bonds, 4.4%
be linked to investors liquidating (RJR Group). The resumption in for the Bermud 2029 bonds, and
their positions to shore up their cash capital market activities coupled with 8.5% for the Barbad 2029 bonds.
position in the light of the worsening improved economic conditions could
economic climate. Meanwhile, T&T’s aid in the recovery of the Jamaican The US Federal Reserve’s actions to
relatively small decline (6.0%), can be stock market in 2021. In T&T, the boost liquidity and investors’ appetite
attributed to the fact that the market launch of an online platform in 2020 for attractive yields fostered some
is thinner than the Jamaican market and the government’s introduction recovery in the EM bond market in
with less trading activity. It must be of a tax incentive for SMEs that the latter part of the financial year.
noted that the T&T and Barbados opt to list on the Trinidad & Tobago During the year, the US Federal
equity markets are less vibrant than Stock Exchange could help to fuel Reserve stepped in with a broad
Jamaica’s, with fewer listings and greater interest in the market in array of actions to limit the damage
significantly lower volumes traded. the coming years. Meanwhile, an from the pandemic including up to
We believe the regional stock markets improvement in the Barbadian market US$2.3 trillion in lending support
could gradually recover in 2021, as will be contingent on the efforts of to households, employers, financial
the race to distribute vaccines to the the stock exchange to spread greater markets, and state and local
market for distribution intensifies. The awareness around the benefits of governments. Further, in March,
vaccines could allow for the relaxation investing as well as any provision of the Fed reduced its benchmark
of containment measures such as attractive incentives for companies to interest rate by 50 basis points
curfews, which would influence list. to the range 0.0%-0.25%. These
an increase in business activities actions heightened liquidity in the
and a recovery in revenue growth market keeping US government and
for listed companies. Furthermore, Global Fixed Income Market corporate bond yields low. Given that
we anticipate a rebound in initial & investors maintained their appetite
additional public offerings (IPOs/APOs) Emerging Market (EM) bond prices for favourable yields, some of the
in Jamaica in 2021, as companies trended downwards during the first funds from the US market flowed to
that delayed their capital raises due few months of 2020, due to the the EM bond market, as investors
to COVID-19 have already begun negative investor sentiment caused purchased higher-yielding/attractively
to seek equity financing to support by fears around COVID-19, its priced assets. As a result of this,
their expansion plans. Some of these potential impact on risky assets, and Jaman, Tritob, Barbad, and Bermud
companies include Sygnus Credit negative rating actions that reflected bond prices have since trended
Investments Limited, Future Energy the weakened economic and fiscal upwards while the yields declined

CONTINUED
(see figure 2). Following this FIGURE 2 Regional Bond Performance 2019-20FY
recovery, these bonds recovered Figure 2: Regional Bond Performance 2019-20FY
much of the lost ground, while
the Bermud 2029 appreciated 9.00
(see table 4). Bermuda’s stable
8.00
outlook and rating affirmation
amid the pandemic influenced 7.00
Yield to Maturity (%)
by its moderate debt burden 6.00

and strong external position
5.00
likely supported this appreciation
in bond value. Although there 4.00
has been some recovery, the 3.00
overall year over year decline in
bond prices resulted in trading 2.00
and fair value losses for many 1.00
financial companies, which 0.00
adversely impacted their financial
performance.
9
19
19
20
20
20
20
20
t-1
-2
r-2
-2
l-2
v-
c-
n-
b-
n-
g-
p-
ar
ay
Ju
Oc
Ap
No
De
Ja
Fe
Ju
Au
Se
M
M
Sustained improvement/recovery
in EM bond values is likely in the Jaman 2028 Bermud 2029 Barbad 2029 Tritob 2026
coming months, considering the
possible near-term distribution Source: Bloomberg
of COVID-19 vaccines and the
importance it will have on global
economic recovery in 2021.
Furthermore, the low-interest-
rate environment in the US TABLE 4 Regional Bond Performance
will continue to drive investors
towards emerging market assets,
PRICE PRICE
as the potential return on these
REGIONAL ISSUERS (OCTOBER 1, 2019) (SEPTEMBER 30, 2020) PRICE CHANGE (%)
securities will be more attractive.
The low-interest-rate environment JAMAN 2028 $118.61 $114.22 -3.7%
in the US and Europe is likely to TRITOB 2026 $104.31 $101.83 -2.4%
remain intact, as major central
banks will be inclined to maintain BERMUD 2029 $113.25 $119.29 5.3%
their accommodative monetary BARBAD 2029 100.96% $97.86 -3.1%
policy stance to aid in the global
economic recovery. Source: Bloomberg
AC C EL ER ATE 72
MD&A
Financial
Performance
The Group was not immune to the challenges EARNINGS PER STOCK UNIT
created as a result of the COVID-19 pandemic
$11.39
$12.30
$5.87
$7.76
$8.01
and the consequent economic fallout and
deterioration in market conditions. This year
presented unprecedented uncertainties as the
Group grappled with the effects of COVID-19 and
the decline in economic activity which negatively
impacted profitability. The weakened economic
conditions resulted in:
• A reduction in securities trading approximately 50% of total operating 2016 2017 2018 2019 2020
activity, a decline in the equity expenses, was $40.5 billion,
markets and depreciation in representing a 26% or $8.4 billion
the Jamaican currency relative increase when compared to the prior RETURN ON EQUITY
to its main trading currencies. period. Additionally, the execution of
Consequently, gain on foreign our digital strategy involved significant
currency and investment investments in our information
activities declined by $6.6 billion technology infrastructure and
or 43% to $8.8 billion; application software in recent years,
which contributed to a $1.6 billion 22.73% 21.52%
• An increase in credit impairment or 23% increase in depreciation and
losses to $10.3 billion compared amortisation to $8.5 billion. 17.44%
to losses of $4.8 billion in 15.09%
12.57%
the 2019 financial year. The
significant economic downturn
resulted in the Group applying 4 YR CAGR*: 7.2%
very conservative provisioning NET PROFIT** ($’M) 2016 2017 2018 2019 2020
given the economic uncertainty.
14,449
19,108
27,959
29,869
19,090
NCBFG reported record net

consolidated operating income of
$108.8 billion, an improvement COST TO INCOME
of $17.6 billion or 19% when
compared to the previous year. The 68.5%
consolidation of a full year of GHL’s 67.4%
results compared to only five months
in the prior period and a strong
performance from GHL during the 60.7%
60.7% 60.3%
year had the consequence of our
net results from insurance activities
totalling $32.5 billion, an increase of
$18.0 billion or 125%.
Operating expenses increased by 2016 2017 2018 2019 2020

2016 2017 2018 2019 2020
$16.8 billion or 26%, to $81.6 billion.
* CAGR – Compounded Annual Growth Rate
The increase in operating costs was ** Net profit attributable to stockholders of the parent.
largely driven by the consolidation
of a full year of GHL’s expenses.
Staff costs, which accounts for

CONTINUED
The Group’s commendable delighted customers and becoming opportunities ahead. NCBFG is
performance despite the arduous digital to the core. Our goals are resolute in continuing the legacy of
operating environment is a testament all interconnected and as such the exceeding the goals and aspirations of
to the resilience of our diversified successful application of each pillar our stakeholders including employees,
business model. is necessary to create and maintain customers and our shareholders.
a unified Group which will provide a We will maintain our commitment
world-class financial ecosystem to our to excellence in driving value to
customers and stakeholders. customers, our employees and the
Outlook region.
Our strategy is well underway with
The Group remains dedicated the development and launch of digital
to the execution of its 2024 platforms, innovative products and
Strategic Programme despite the services and enhanced offerings
unprecedented shocks in regional and as we pivot to ensure that we are
international economies. By remaining serving the evolving needs of our
steadfast in the implementation of team, customers, and the territories
our strategic initiatives, we believe in which we operate. We are aware
that we will be able to accomplish that there are still challenging times
our aspirations of achieving strong ahead which will require us to adapt
financial performance, inspired to new way of life. However, we are
people and culture, having motivated and optimistic about the
SEGMENT PERFORMANCE
OPERATING PROFIT ($‘M)
2019 2020
General Insurance 6,218

2,333
18,740
Life & Health Insurance &
23,718
Pension Fund Management
9,893 Wealth, Asset Management

& Investment Banking
6,132
9,897 Treasury
6,892
5,210 Corporate & Commercial Banking 2,712

Payment Services 2,440
3,637
Consumer & SME Banking
(414) (1,055)
AC C EL ER ATE 74
MD&A
Financial
Performance CONTINUED
Segment Performance
TABLE 5: SEGMENT SELECTED FINANCIAL DATA (1)
Commercial & SME Banking Payment Services Corporate & Commecial Banking
Year ended September 30 2018 2019 2020 2018 2019 2020 2018 2019 2020
Segment's Contribution of
Performance (%)
{Segment Result as a percentage of
Consolidated Statement Result}
Total revenue 29.8% 18.9% 12.4% 14.5% 9.8% 6.8% 8.9% 6.4% 4.7%
Net interest income 57.1% 51.8% 44.1% 11.7% 12.2% 12.0% 10.5% 12.5% 13.8%
Total operating income 35.0% 26.6% 20.9% 12.4% 11.2% 8.6% 6.8% 7.4% 6.2%
Total operating expenses 34.6% 24.2% 21.9% 9.4% 6.9% 5.8% 1.8% 1.3% 1.7%
Operating profit 10.5% (1.6%) (3.9%) 11.0% 13.8% 9.0% 13.0% 19.7% 9.9%
Total assets 38.0% 26.0% 24.4% 2.9% 1.8% 1.5% 11.5% 7.8% 8.7%
Selected Segment Performance

Indicators (%)
Cost to income ratio 84.8% 86.8% 85.5% 62.7% 58.7% 59.3% 27.7% 22.1% 46.5%
Operating profit as a percentage
of average assets 0.9% (0.1%) (0.2%) 11.0% 12.7% 8.7% 3.5% 4.4% 1.9%
Selected Segment Financial Data

(in millions)
Total revenue 29,479 32,306 31,816 14,354 16,732 17,345 8,751 10,893 12,155
Total operating income 24,336 24,268 22,700 8,602 10,198 9,343 4,731 6,708 6,722
Net interest income, net of credit
18,968 18,929 18,090 3,565 4,442 4,016 3,643 5,537 5,364
impairment losses
Net insurance activities - - - - - - - - -
Other income 5,369 5,340 4,610 5,036 5,756 5,327 1,088 1,172 1,358
Total direct operating expense 15,036 15,664 17,852 4,063 4,447 4,710 763 853 1,367
Staff costs 10,323 9,777 9,584 905 1,043 923 322 349 244
Operating profit 2,749 (414) (1,055) 2,878 3,637 2,440 3,406 5,210 2,712
Segment assets 371,812 420,800 439,335 28,226 28,996 27,252 112,328 126,195 156,881
Segment liabilities 350,173 369,548 382,909 15,097 17,463 8,274 88,719 92,742 126,646
(1)
Segment data do not give effect to the elimination of intersegment transactions.
We are a diverse Group with varying recording improved performances includes Consumer & SME Banking,
business segments. Our performance over the prior year. Our life & Payment Services, Corporate &
is managed and reported through two health insurance and pension fund Commercial Banking and Treasury &
main types of business activities – management and general insurance Correspondent Banking, contributed
banking & investment and insurance, segments recorded increases of $5.0 operating profits of $11.0 billion
which comprise a total of seven billion and $3.9 billion in operating while Wealth, Asset Management &
operating segments. The reduction profits, respectively, primarily due to Investment Banking contributed $6.1
in consumer, business and trading the consolidation of a full year’s results billion.
activities due to the adverse impact of for GHL versus only five months
the pandemic on the economy resulted in the previous financial year. Our The business segments were
in only two of our seven segments commercial banking segment, which significantly impacted by an increase

CONTINUED
Treasury & Correspondent Wealth, Asset Management Life & Health Insurance &
General Insurance
Banking & Investment Banking Pension Fund Management
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
21.3% 12.3% 6.9% 18.6% 15.8% 7.1% 14.2% 30.6% 40.6% 6.7% 16.2% 25.7%
11.0% 9.4% 6.1% 11.4% 10.7% 10.8% 6.2% 18.6% 27.7% 1.8% 1.8% 1.7%
16.1% 13.0% 8.2% 18.0% 15.4% 10.3% 16.3% 28.4% 36.0% 3.7% 8.6% 13.7%
3.0% 2.1% 1.9% 7.7% 6.5% 6.2% 4.1% 11.0% 19.0% 3.5% 8.4% 10.7%
36.5% 37.4% 25.3% 35.1% 37.4% 22.5% 36.4% 70.9% 87.0% 4.1% 8.8% 22.8%
30.8% 20.4% 20.3% 22.2% 16.6% 19.3% 5.4% 27.9% 31.3% 1.6% 6.4% 5.5%
15.0% 17.0% 22.5% 26.2% 30.4% 46.4% 15.8% 27.2% 38.2% 58.1% 69.3% 58.0%
3.6% 3.1% 2.0% 4.5% 4.1% 2.0% 19.1% 7.4% 4.7% 7.3% 3.9% 6.1%
21,064 21,038 17,599 18,357 27,022 18,353 14,061 52,235 104,208 6,642 27,652 65,962
11,237 11,809 8,968 12,544 14,079 11,179 11,327 25,878 39,219 2,588 7,798 14,939
3,885 2,624 2,926 3,738 5,115 5,980 2,184 7,945 13,190 642 731 800
- - - - - - 2,412 9,598 17,607 1,687 5,239 12,795

7,352 9,186 6,042 8,806 8,965 5,199 6,731 8,335 8,422 259 1,828 1,343
1,299 1,388 1,543 3,363 4,186 5,047 1,794 7,138 15,501 1,503 5,465 8,720
217 269 189 1,678 2,028 2,401 1,021 3,309 8,151 874 2,646 4,939
9,554 9,897 6,892 9,181 9,893 6,132 9,533 18,740 23,718 1,086 2,333 6,218
301,620 329,569 366,204 216,829 269,047 346,603 53,116 451,176 563,591 15,382 104,248 99,683
281,807 327,938 388,005 183,402 223,599 299,625 34,062 344,879 431,195 8,649 75,253 66,228
in credit impairment losses. Our Collaboration across the territories and customers in Jamaica, Bermuda,
operating environment has been segments will be integral in deriving the Cayman Islands and the United
partially redefined by the effects of incremental value. Kingdom through subsidiaries of
the pandemic; however, we remain NCBJ and Clarien. Additionally, NCBJ
flexible to navigate to sustainably maintains a Representative Office in
meet and exceed the expectations Consumer and SME the United Kingdom. The prevailing
of our customers and employees. economic challenges associated
We embarked on several initiatives to
Banking with the pandemic weighed on the
capitalise on opportunities to improve segment’s performance. The segment
current offerings whilst creating new This segment serves individual retail recorded a net operating loss of
products to meet evolving needs. and small and medium business $1.1 billion, a decline of $641 million
AC C EL ER ATE 76
MD&A
Financial
from the prior year. External revenues despite the limitations on physical products, to commercial and large
decreased by 3% or $908 million interactions. The long-term aspiration corporate clients. Our Corporate
to $29.4 billion. The reduction was is to increasingly leverage digital & Commercial Banking segment
primarily driven by a 13% decline in to continuously enhance customer earned $2.7 billion in operating profit,
net fee and commission income due experience while improving efficiency. a decrease of 48% or $2.5 billion
to lower credit related fees and certain compared to the previous year. The
fee waivers from banking services decline in performance was primarily
to support customers through the due to a $1.8 billion increase in
unexpected challenges stemming
Payment Services credit impairment losses resulting
from the pandemic. Performance was from changes in assumptions in the
further eroded by a 22% increase This segment consists of our credit loss model to account for the
in credit impairment provisions as a Card Issuing and Card Acquiring weakened economy and projections
result of the increased credit risk given businesses. During FY20 the for its recovery, and its potential
the current economic conditions. segment grappled with a reduction in impact on the credit quality of the
transaction volumes and value due to segment’s loan portfolio due to the
Operating expenses totalled $17.9 the decline in consumer and business negative effects of the pandemic on
billion, an increase of $2.2 billion or activities caused by government the operating environments. The
14%. This was primarily driven by an mandated restrictions imposed to limit tourism, hospitality and entertainment
increase in depreciation & amortisation the spread of COVID-19. Operating industries experienced the greatest
from $1.1 billion in the prior year to profits decreased from the prior year fallout. This significant increase
$2.3 billion related to the upgrades by $1.2 billion or 33% to $2.4 billion. in credit impairment losses offset
of our core banking systems and The decline in transaction activities the 13% or $1.4 billion increase in
infrastructure. coupled with waivers on certain credit external revenues stemming from loan
card user fees caused net fee and growth.
Our support for small & medium commission income to decline by 7%
sized enterprises (SMEs) was integral or $428 million to $5.3 billion. Total Operating expenses were 60% or
given the significant impact that the operating income was $9.3 billion $514 million higher than the prior year
economic decline has had on the compared to $10.2 billion reported as a result of technical consultancy
viability of these businesses. Small in the prior year. Results were further and professional fees incurred
businesses are the backbone of the eroded by credit impairment losses in executing strategic and digital
economy and we are dedicated to being 135% or $1.3 billion higher activities coupled with increased
providing working capital and business than the previous year due to the irrecoverable general consumption
support through specialised financial impact of the COVID-19 pandemic on and asset taxes stemming from
solutions in order to reinforce their assumptions related to current and the growth in the business and the
survival and growth in these uncertain expected future credit card portfolio statement of financial position. Costs
times. quality. allocated from support units were
$2.0 billion above the prior year due
In the Jamaican market we are Total operating expenses were $4.7 to the migration of the commercial
focussed on driving efficiency through billion which represents a $262 million customers’ portfolio to this segment.
the revamping of our operating model. or 6% increase when compared to
This segment has the highest cost- the previous year’s performance. Our
to-income ratio within the Group card systems are being continuously Treasury and
which indicates that there is room upgraded to ensure reliability, and to
for efficiency improvements. Through
Correspondent Banking
maintain and improve system up-time.
optimisation strategies, many routine We have phased the introduction
activities have been transferred of more payment platforms to offer Our Treasury and Correspondent
to electronic channels. Our digital merchants various alternatives to Banking segment incorporates
acceleration efforts have enabled process payments. liquidity and investment management
us to transition three branches to functions for our banking activities
digitally enabled 24-hour branches in Jamaica and Bermuda, foreign
outfitted to fulfill a complete suite of currency dealing activities,
customer needs. We have also been
Corporate and
management of correspondent
able to support customers through Commercial Banking banking relationships as well as
personal financing products by offering relationships with other financial
end-to-end digital loan processing This segment offers banking services, institutions. Our Treasury and
so customers’ needs can be met including loans and other credit Correspondent Banking segment

CONTINUED
reported operating profit of $6.9 revenues from $15.7 billion in the prior wealth management tools at their
billion, a decline of $3.0 billion or financial year to $14.4 billion. Overall convenience. We are actively seeking
30% when compared to the prior revenue growth was hindered by the to introduce new innovative financial
year. External revenues totalled reduced volumes of securities in the solutions to our diverse clientele
$13.5 billion, representing a 14% market and the deceleration in the across the region. We intend to
or $2.1 billion decline compared to number of capital markets transactions capitalise on our partnerships to
the previous year. The performance executed. Consequently, the segment create alternative investment products
was negatively impacted by the low reported operating income of $11.2 to suit the various risk appetites of
interest rate environment, reduction in billion, representing a $2.9 billion or our customers to encourage wealth
trading activities and the depreciation 21% decrease when compared to the management for those we serve.
of the Jamaican currency as a result prior year’s results. The weakened
of weakened market conditions. market conditions resulted in a decline
Consequently, net interest income in equity and securities trading activity Life & Health Insurance
decreased by 24% to $3.2 billion and caused an 84% reduction in gain
while gain on foreign currency and on foreign exchange and investment
and Pension Fund
investment activities declined by 15% activities to $714 million. The negative Management
to $5.6 billion. The current market impact of the market contraction
conditions also negatively impacted was sufficient to more than offset the This segment incorporates the results
assumptions related to credit quality improvements in net interest income, of the life & health insurance and
for the segment, resulting in $275 which increased by 18% or $882 pension fund management services of
million in credit impairment losses million due to the inclusion of a full the Group across 21 countries across
in comparison to reversals of $538 year of GHL’s asset management the region. The largest territorial
million in the prior year. Total operating results as opposed to five months in contributors to this segment are
expenses grew by 11% to $1.5 billion the prior financial year. Trinidad & Tobago, Jamaica and the
while costs allocated from support English and Dutch Caribbean.
units increased by $10 million to $533 Net fee and commission income
million. increased by 3% over the prior year. The segment achieved an operating
During the year, our main wealth profit of $23.7 billion representing
NCBJ’s treasury segment also management subsidiary, NCBCM an increase of 27% or $5.0 billion
bolstered US dollar liquidity buffers at executed the Transjamaican Highway when compared to the prior year.
the end of the financial year by raising Limited’s Initial Public Offering (IPO) on The inclusion of the full year of
US$250 million via the securitisation both the Main and USD markets of the GHL’s performance in this segment,
of a new Diversified Payment Rights Jamaica Stock Exchange (JSE) – the as opposed to five months in the
facility. This private placement largest amount raised from an IPO previous year, boosted the results of
was upsized to US$250 million on the JSE. There were also strides the segment. GHL also performed
following an oversubscription of the made in the Trinidadian market via the commendably during the financial year
transaction signalling the confidence successful closing of a Government despite the challenges arising from
of international investors in NCBJ’s of the Republic of Trinidad & Tobago the pandemic. GHL recorded strong
fundamentals and the stability of these TT$1.5 million fixed rate bond which underwriting performance as well as
flows. was executed by NCBGF. benefitted from the combination of
the GLL insurance portfolio with that
In addition to the reduction in of NCBIC. External revenues earned
revenues, the segment’s performance for the year totalled $103.7 billion, an
Wealth, Asset
was further eroded by a 21% increase increase of 96% or $50.9 billion. The
Management and in total operating costs to $5.0 billion improvement in revenues was mainly
Investment Banking mainly due to the consolidation of a due to a 75% growth in net interest
full year of GHL’s wealth management income to $14.5 billion and the net
Our wealth, asset management segment results. During the year, we result from insurance activities was
and investment banking segment expanded our Jamaican online wealth $17.6 billion, which was $8.0 billion or
primarily operates in Jamaica, the management platform to include 83% higher than the prior year.
Cayman Islands, Trinidad & Tobago, the execution of real-time equity
Barbados and Bermuda, providing trading and unit trust orders and Operating expenses amounted to
stock brokerage services, securities introduced robo-advisory services in $15.5 billion compared to $7.1
trading, investment management and the Bermudian market. The expansion billion in FY19. This too was mainly
other financial services. The segment in our digital platforms enables as a result of the addition of GHL’s
registered an 8% reduction in external us to offer our clients accessible full year’s financial performance
AC C EL ER ATE 78
MD&A
Financial
compared to only five months in the insurance from the Guardian Group. Caribbean markets which led to a
prior year. The streamlining of the Performance from this segment was $7.6 billion or 144% increase in net
Jamaican insurance business at the heavily driven by the consolidation results from insurance activities.
end of the financial year enables the of a full year of GHL’s property and Operating expenses increased by
Group to harvest expense synergies casualty results versus only five 60% or $3.3 billion to $8.7 billion.
by eliminating redundant systems. The months in the prior year. Additionally, it This was primarily due to an 87%
expansion of the distribution network must be noted that the prior financial or $2.3 billion increase in staff costs
and full partnership of the insurance year’s results included performance related to the additional seven months
business positions the Group as from Advantage General Insurance of expenses in the 2020 financial
one of the prominent financial and Company Limited, which was sold year (to include the segment’s full
insurance services providers in the by the Group at the end of the 2019 year performance) as well as higher
region. financial year. External revenues staff costs related to the acquisition
were $65.5 billion compared to of a brokerage business during
$27.4 billion in the prior year. The the financial year. These activities
growth in the property and casualty contributed to operating profit of $6.2
General Insurance business also contributed to the solid billion up from $2.3 billion.
performance from GHL. The segment
This business segment reports the was spared impact from any major
results of general insurance, which catastrophic events during the year
and experienced growth in the Dutch
Income
incorporates property and casualty
Statement
SEGMENT PERFORMANCE
OPERATING PROFIT($‘M) Analysis
(1,055) 2,440 2,712 6,892 6,132 23,718 6,218
Operating Income
Operating income derives from

banking & investment and insurance
activities. Operating income increased
by 19% or $17.6 billion to $108.8
4 YR CAGR*: 23.4%
OPERATING INCOME ($’M)
108,827
46,936
54,337
69,615
91,181
Consumer & Payment Corporate & Treasury Wealth, Asset Life & Health General
SME Banking Services Commercial Management Insurance & Insurance
Banking & Investment Pension Fund
Banking Management 2016 2017 2018 2019 2020

CONTINUED
INCOME MIX FY 2019 & 2020 • Interest income from investment

securities, reverse repurchase
agreements and deposits totalled
$30.9 billion which was $8.1
32,456 billion higher than the prior year’s
2020 total of $22.8 billion. The full
year consolidated results from
Ne
GHL (compared to five months in
t re
14,432
sul
2019) accounted for the sizeable
t fr
growth in interest income from
om
ies
ctivit
insur
investment securities.
& investment a
2019 • Interest expenses increased by
ance activities
$1.5 billion, or 7%, to $21.9
billion for the year. The main
contributors to the increase
banking
were the additional seven

months of expenses related to
rom
the consolidation of GHL and

ult f
increased interest expenses on

es
et r
76,749 repurchase agreements.

N
[More details on net interest income item

76,371 can be found in note 6 of the financial
statements – see page 221].
• Credit impairment losses, which

billion. Gross income was $256.8 from insurance activities accounted includes expected credit losses
billion compared to $171.3 billion in for 49% of non-interest related income on investment securities and
the prior year. compared to 28% in 2019, while loans and advances, totalled
the net fee and commission income $10.3 billion, up by $5.5 billion
The contribution from net insurance contributed 32% of non-interest or 113% from $4.8 billion in
activities increased to 30% of the income compared to 37% in 2019. the prior year. The significant
Group’s net operating income, up increase in impairment losses
from 16% in the prior year, due to the was due primarily to the impact
full year of activity from the Guardian the COVID-19 pandemic has
Group included in the 2020 financial
Net Interest Income
year. The net result from banking &
4 YR CAGR*: 11.3%
investment activities of $76.4 billion The Group earned net interest income,
was relatively flat when compared NET INTEREST INCOME ($’M)
net of credit impairment losses, Net of Impairment Losses
to the prior’s year performance of totalling $42.2 billion, an increase $2.4
$76.7 billion. Both business lines billion, or 6% over the prior year.
27,511
29,030
33,184
39,770
42,205
were impacted by the contraction of

the economy due to the pandemic; • Interest income from loans was
however, the insurance business $43.5 billion, increasing by $1.2
displayed greater resilience against the billion, or 3%. There was robust
downturn. growth in the Group’s loan
and card portfolios despite the
Net interest income, net of credit slowdown in global and regional
impairment losses, contributed 39% to economies. In addition to the
net operating income, down from 44% growth in loans, the consolidation
in the previous year. The remaining of a full year of results from GHL
61% primarily comprised net fee and (compared to five months in
commission, gain on foreign currency 2019) accounted for 55% of the
and investment activities, and the net increase.
result from insurance activities. Of the
non-interest bearing items, net result
2016 2017 2018 2019 2020
AC C EL ER ATE 80
MD&A
Financial
4 YR CAGR*: 36.1%
NON-INTEREST INCOME ($’M) Net underwriting income
increased to $101.7 billion, INSURANCE LOSS RATIO
up $53.5 billion or 111%, over
19,425
25,306
36,431
51,411
66,622
the prior year’s performance.

The consolidation of a 61.28% 60.31%
full year of GHL’s results
contributed $58.9 billion to the 55.19% 54.62%
improvement in underwriting 50.47%
income due mainly to the solid
performance of the life, health
and pension business despite
challenges arising from the on-
going pandemic. The general
insurance segment also
recorded increased net income 2016 2017 2018 2019 2020
having been spared major
disastrous events coupled
with the growth in business
2016 2017 2018 2019 2020 experienced in the Dutch
Caribbean markets. Premium As previously noted, at the end of the
income totalled $135.2 billion financial year, the Jamaican insurance
had on economic activities (2019: $60.6 billion) of which business was streamlined, resulting
and business operations. The GHL contributed $132.0 in NCBIC transferring 100% of its
Group’s delinquency management billion. portfolio of insurance and annuities
processes remain robust and business to GLL. The net result from
proactive to respond sufficiently to [Additional details on this income
insurance activities also benefited
the risk environment in all of our item can be found in note 9 of the
from the initial effect of combining the
operating jurisdictions. financial statements – see page
GLL insurance portfolio with that of
223].
NCBIC.
[A summary of this expense item can
be found in note 13 of the financial Net policyholders’ and • Net fee and commission income
statements – see page 226]. annuitants’ benefits and totalled $21.4 billion, an increase
reserves increased by 106% of $2.2 billion or 11%. The
to $56.2 billion mainly as a Guardian Group earns fee income
result of the consolidation of via policy administration and
Other Revenue Items asset management services and
an additional seven months
of GHL’s results. The prior was the main contributor to the
Non-interest income grew to $66.6 year included reserve releases increase in net fee income. The
billion, up $15.2 billion or 30% over related to NCBIC’s portfolio, improved fees from GHL offset
the prior year. which contributed to 15% of the reduction in fees experienced
the increase experienced in the by the banking segment, which
• Net result from insurance activities 2020 financial year. was mainly due to the pandemic’s
totalled $32.5 billion, up $18.0 impact on business and
billion or 125%, over the prior [Further details on this expense
consumer activities, by extension
year’s performance of $14.4 item can be found in note 10 of
transaction volumes, and our
billion. The consolidation of a full the financial statements – see
efforts to promote the use of our
year of GHL’s results, compared page 223].
digital channels by the waiving or
to five months in the prior year, reducing certain user fees.
was the main contributor to this Commission and other selling
increase. Included in the prior [A summary by segment can be
expenses incurred in providing
year’s results was $1.2 billion found in note 7 of the financial
insurance services grew to
from a former subsidiary, which statements – see page 222].
$13.0 billion, up from $6.4
was disposed of at the end of the billion, which was also due to
2019 financial year. the consolidation of the full • Gains on foreign currency and
year of GHL’s results. investment activities totalled
$8.8 billion, down $6.6 billion or
43%, from the prior year’s result.

CONTINUED
The reduction was caused by • Staff costs of $40.5 billion Group adopted IFRS 16 “Leasing”
weakened economic conditions increased by $8.4 billion, which replaces IAS 17. Under
stemming from the pandemic, or 26%, largely due to the IFRS 16, lessees are now
which resulted in reduced consolidation of a full year of required to recognise a lease
securities trading activity, a GHL’s results, compared to five liability reflecting the future lease
decline in the equity markets and months in the prior year. GHL payments and ‘right-of-use asset’
the depreciation of the Jamaican contributed 36% of the Group’s for virtually all lease contracts.
dollar. staff costs, up from 16% in the The adoption of this new
prior year. We remain dedicated standard resulted in finance costs
[Further details on this income in our commitment to being an of $1.4 billion for the current
item can be found in note 8 of the employer of choice across all our financial year.
financial statements – see page operating territories by providing
222]. appropriate compensation and [Additional details on these expenses
prioritising the health and well- can be found in notes 28, 29 and
The Group’s commitment to being of our employees. During 57 of the financial statements – see
pursuing our aspiration of becoming the year, we expanded our remote pages 241,242 and 356].
the Caribbean’s leading financial work framework and updated
ecosystem remained unwavering as our policies and practices to • Other operating expenses totalled
we navigated through this period of transition as many non-customer $31.1 billion, an increase of $5.4
increased uncertainty. Our continued facing employees to remote billion or 21%.
proactive management of our capital, work. Additionally, we have made
liquidity, risk, margins, currency and significant investments in human Property, vehicle and ABM
financial positions allowed us to capital with increased training maintenance and utilities grew
weather the devastating economic and competency building across by $1.5 billion or 28% mainly
impact of COVID-19 and adeptly meet the Group. The development due to the consolidation of
the needs of our customers. We will of our employees’ expertise a full year of GHL’s results
continue on this path to manage, and capabilities is of utmost compared to five months in
assess and adjust, where required, to importance to the successful the prior year. The Group
the changes in the environment. execution of our strategic experienced increases
initiatives as we work to safely in maintenance costs
navigate the current economic related to our technological
and health crisis. infrastructure as we expanded
Operating Expenses our digital capabilities.
[Further details on staff costs can Repairs and maintenance of
Operating expenses totalled $81.6 be found in note 12 of the financial our business premises also
billion, up $16.8 billion or 26% over statements – see page 225]. increased during the year as
the prior year, mainly as a result of we worked on standardising
the consolidation of a full year of • Depreciation, amortisation and all physical locations to
GHL’s expenses, compared to five finance charges totalled $9.9 ensure the safety of our
months in the prior year. In response billion, up $3.0 billion over the customers and staff. We also
to the ongoing health crisis, we prior year. The main driver of continued the optimisation
have accelerated our digital agenda the increase was amortisation and modernisation of our
to expand the digital products and of software intangible assets Jamaican banking branch
services provided to our customers and depreciation of computer operations to create a more
ensuring they had safe and convenient hardware due to the significant delightful experience for our
alternatives to conduct business, capital investments made during customers, and we incurred
safeguarded the health and well- the year to enhance and expand additional cleaning costs due
being of our staff and limited business our digital capabilities. These to the increased sanitisation
disruptions due to new safety investments were necessary as of our offices and branches
protocols introduced. Additionally, we we adjusted our digital business to protect our employees and
continued necessary investments to operations. The consolidation customers.
improve and expand the skillsets and of GHL’s results for a full year
competencies of our team, equipping (compared to five months for Marketing, customer care,
us to deliver on our strategic the 2019 financial year) also advertising and donations
commitments. accounted for some of the increased by $1.2 billion
increase. During the year, the or 40% mainly due to the
AC C EL ER ATE 82
MD&A
Financial
consolidation of an additional Technical, consultancy and significant influence over the other
seven months of GHL’s market professional fees increased party in making financial or operational
research and development by 36% or $955 million due decisions.
costs as well as advertising to the implementation of
and marketing expenditure. various strategic initiatives In the normal course of business,
Additionally, the Group and our geared towards improving we engage, and expect from time
three Foundations supported our core business, financial to time to engage, in financial
and partnered with various performance, efficiency and and commercial transactions with
groups across the region digital capabilities. related parties. These transactions
to provide COVID-19 relief are executed on an arm’s length
packages, hospital equipment Irrecoverable general basis, on substantially the same
and other donations to help consumption tax and asset terms, including interest rates and
those most impacted, such as tax increased by $769 million collateral, where applicable, as those
front-line workers and others or 20%. During the year, the prevailing at the time for comparable
assisting with the fight against Jamaican banking sector transactions with unrelated parties
the spread of the virus. volunteered to contribute to (with the exception of loans included
the Jamaican Government’s under our Staff Loan Policy). Related
Travelling, courier and fiscal stimulus package in party transactions with terms outside
telecommunication expenses response to COVID-19 by of normal business conditions require
grew by 60% or $1.2 billion. foregoing the previously approval by the Board of Directors.
Given the changes to our announced reduction in asset Additionally, certain subsidiaries have
operations there was a decline tax. The Group’s asset tax Corporate Governance and Conduct
in travel expenses; however, charge for the year totalled Review Committees which monitor
we experienced increased $1.9 billion. overall related party exposures and
courier and telecommunication approve transactions with related
expenses to facilitate remote [A list of other operating expenses parties outside of the normal course
work and physical distancing. can be found in note 14 of the of business. Periodic reports are also
The consolidation of seven financial statements – see page received by the Audit Committee.
additional months of GHL’s 226].
expenses also contributed to
this increase. Staff loans and other
Related and Connected concessionary facilities
Party Transactions We provide credit facilities at
concessionary rates to employees and
4 YR CAGR*: 29.7% The Group considers the following pensioners. The amounts that can be
OPERATING EXPENSES ($’M) individuals or entities to be related: borrowed at concessionary rates are
capped and all amounts in excess of
• Parent and companies controlled the cap are accessible through normal
28,840
33,178
43,429
64,737
81,566
by our major shareholder customer facilities. The benefit of the

• Subsidiaries discounted rate is assessed annually
• Associated companies of the and if determined to be material,
Group included in the financial statements.
• Directors and key management
personnel and their families
• Companies controlled by directors Other major related party
and related by virtue of common transactions
directorship.
Related parties may engage in
Connected parties include our transactions involving financial
affiliates, associated companies, assets or financial liabilities such
principal shareholders, directors, key as investment securities, reverse
management personnel, officers and repurchase agreements, obligations
employees. Parties are considered to under repurchase agreements or
2016 2017 2018 2019 2020 be related or connected if one party corporate notes, which are executed
has the ability to control or exercise at prevailing fair market prices. From

CONTINUED
time to time, these transactions may the transaction was eliminated. The Jamaica (“BOJ”). The increase over
involve corporate finance services for proceeds, net of transaction costs, prior year was largely driven by the
which fees are charged at rates that totalled $4.9 billion. various balances held with the Central
are consistent with those charged Banks, which grew by $9.1 billion or
for similar services to unrelated [A summary of related party transactions 91% over the prior year. Statutory
customers. Transactions and balances and balances can be found in note 49 and reserves held with Central Banks
between the Group companies are 54 of the financial statements - see pages declined by $1.8 billion or 5%. The
eliminated on consolidation of the 279 and 347]. decline in statutory reserves was
financial statements. as a result of a decision made by
the BOJ to reduce the cash reserve
In the normal course of business, requirement of Jamaican DTIs by
we also enter into agreements with two percentage points effective May
related parties, which typically involve
the provision of advisory, insurance
Financial 15, 2020. The foreign currency cash
reserve requirement was reduced
and other services. These services
are provided on terms which are Position to 13% while the domestic currency
cash reserve has been reduced to
consistent with those offered to other 5%. These reserve requirements
unrelated customers. Performance are the amount of money that
DTIs are required to hold at BOJ
against prescribed liabilities. BOJ
Major related party transaction for implemented these adjustments with
the 2020 financial year the aim to boost liquidity levels in
Asset Performance the Jamaican financial system in the
During the year, NCBIC entered in an
agreement with GLL to dispose of its
Overview context of the strain caused by the
impact of COVID-19.
insurance and annuity business. This Our asset base grew to a record
transaction was finalised at the end high of $1.8 trillion, representing an
of September 2020. The transaction increase over the prior year of $184.0
is considered to be a related party
Due from Banks
billion or 11%. Growth in our asset
transaction and was deemed to be base was primarily driven by increases
among common owners and as such in our investment securities and loan Balances due from banks increased
the gain of $113 million resulting from portfolios. The increase in our loan by $37.5 billion or 27% compared to
portfolio represents our unwavering the prior year. These balances include
commitment to helping individual placements with banks, short-term
4 YR CAGR*: 31.2% customers and businesses we serve deposits and other balances held with
TOTAL ASSETS ($’M) as the economies recover to full correspondent banks. These balances
strength after the devastating impact are held to facilitate normal business
of the COVID-19 pandemic. Our activities as well as to satisfy liquidity
1,616,300
1,800,260
return on assets declined to 1.57% requirements within the Group.

607,669
693,724
978,585
compared to 2.40% in the prior year.

[Further details on this portfolio can
be found in note 18 of the financial
statements – see page 230].
Cash in Hand and
Balances at Central Banks
Investment Securities
Our cash in hand and balances at & Reverse Repurchase
Central Banks increased by $11.5
billion to $74.0 billion compared to
Agreements
the prior year. This category of assets
is composed of cash held by our Investment securities and reverse
ROA ROA ROA ROA ROA commercial banks, statutory reserves repurchase agreements totalled
2.55% 2.94% 3.42% 2.40% 1.57%
with Central Banks, operational $862.6 billion, an increase of $94.4
balances held by Central Banks and billion or 12% over the prior year.
short-term investments with the Our investment securities portfolio
2016 2017 2017 2019 2020 Jamaican Central Bank - the Bank of continues to be the Group’s largest
AC C EL ER ATE 84
MD&A
Financial
NET LOANS & ADVANCES BY CURRENCY interest-bearing asset, representing

47% of total assets (Sep 2019:
47%). This portfolio comprises debt
5% securities (government securities
OTHER and corporate bonds), equity
securities (quoted and unquoted), and
collective investment schemes. These
instruments are classified as fair
value through profit or loss, fair value
through other comprehensive income
and carried at amortised cost.
18% BMD
[Further details on these portfolios can be
found in notes 20 and 22 of the financial
statements – see pages 232 and 233].
53% JMD
Net Loans
24% USD
Our loans and advances, net of

credit impairment losses, amounted
to $453.0 billion, representing an
increase of $29.9 billion or 7%
compared to the prior year. Our loan
portfolio represents the second largest
asset category on the consolidated
statement of financial position. The
Group’s non-performing loans totalled
$24.7 billion, representing an increase
4 YR CAGR*: 24.4% of $1.9 billion or 8% compared to
NET LOANS ($’M) prior year and 5.3% of gross loans.
NET LOANS TO TOTAL ASSETS We continue to make loans easily
189,056
218,615
372,635
423,103
452,955
accessible to customers through our

38.08%
digital channels and online banking
31.11% 31.51% platforms.
26.18% 25.16%
At September 2020, 72% ($328
billion) of loans were issued from
Jamaica while 21% distributed from
Bermuda. 53% of the loan portfolio
is denominated in Jamaican dollars
(September 2019 – 51%), 24% in
NON PERFORMING LOANS TO TOTAL LOANS
United States dollars (September
2019 – 25%) and 18% in Bermudian
dollars (September 2019 -19%).
4.84% 5.28% 5.29% [Further details on the loan portfolio

3.14% 2.45%
can be found in note 21 of the financial
2016 2017 2018 2019 2020 statements – see page 232].
2016 2017 2018 2019 2020

CONTINUED
CUSTOMER DEPOSITS BY CURRENCY
15% BMD 2% GBP
2% CAD, EUR, TTD &

OTHER CURRENCIES
4 YR CAGR*: 20.3% 37% USD
CUSTOMER DEPOSITS ($’M)
273,966
288,464
484,848
504,679
573,969
44% JMD
Customers Deposits These contracts insure human life

events (for example, death, survival
2016 2017 2018 2019 2020 Customer deposits represent our or critical illness) over a long duration.
largest source of funding, accounting The general insurance subsidiaries
for 36% of total liabilities. Deposits issue property and casualty insurance
totalled $574.0 billion, representing contracts. Casualty insurance
an increase of $69.3 billion or 14% contracts protect our customers
Liabilities over the prior year. Despite the against the risk of causing harm
impact of the pandemic, the growth to third parties as a result of their
in our customer deposits portfolio is legitimate activities. Damages covered
Overview indicative of the strong confidence and
loyalty customers have in the Group’s
include both contractual and non-
contractual events. Property insurance
ability to safeguard their deposits. The
majority of our customer deposits 4 YR CAGR*: 18.8%
were held by our Jamaican commercial
REPURCHASE AGREEMENTS ($’M)
Funding bank.
105,975
115,587
152,885
174,620
Our funding portfolio consists of Liabilities under Annuity 211,436

short and long-term borrowing & Insurance Contracts
arrangements under the following and Investment Contract
funding lines: customer deposits, Liabilities
obligations under repurchase
agreements, obligations under Liabilities under annuity & insurance
securitisation arrangements, amounts contracts increased to $405.0 billion
due to banks, other borrowed funds, from $394.6 billion, representing
mutual funds, segregated fund an increase of $10.4 billion or 3%
liabilities, investment contract liabilities over the prior year. These contracts
and liabilities under annuity and arise from operations in life and
insurance contracts. general insurance. Our life insurance
subsidiaries issue life and health
insurance and annuity contracts.
2016 2017 2018 2019 2020
2019 % of Total 2020 % of Total

LIABILITIES UNDER ANNUITY, INSURANCE AND INVESTMENT CONTRACTS
$'M % $'M %
Liabilities under life and health insurance and annuity contracts 336,677 78% 359,257 81%
Liabilities under general insurance contracts 57,938 13% 45,758 10%
Liabilities under investment contracts 39,258 9% 41,682 9%
Total 433,873 100% 446,697 100%
AC C EL ER ATE 86
MD&A
Financial
contracts mainly compensate our the DPR flows. Through this facility, Other Borrowed Funds
customers for damage suffered to US$250 million was raised which was
their properties or for the value of deployed to bolster US dollar liquidity. Other borrowed funds consist of
property lost. Liabilities under life and various funding sources and totalled
health insurance and annuity contracts [Further details on the obligations under $125.1 billion, a slight increase of
accounted for 89% of the balance at securitisation arrangements portfolio $113 million over the prior year. Each
the end of the year (September 2019: can be found in note 33 of the financial source of funding has different terms,
85%). statements – see page 247]. tenures and interest rates which
were accessed for the benefit of
Investment contract liabilities totalled our customers. The most significant
$41.7 billion at the end of the year, balance in this portfolio was corporate
up from $39.3 billion in the prior year. 4 YR CAGR*: 10.9% notes totalling $109.6 billion.
Investment contract liabilities carry EQUITY* ($’M)
floating rates of interest. [Details of other borrowed funds are
103,105
115,994
130,041
147,590
156,115
included in note 34 of the financial
[Further details on the liabilities under statements – page 249].
annuity & insurance contracts and
investment contract liabilities portfolios
can be found in notes 37 and 39 of the Other Funding
financial statements – see pages 252
and 253]. Other funding arrangements mainly
consist of amounts due to banks,
mutual and segregated funds.
Repurchase
Agreements [Details on these balances can be found
in notes 32, 36, and 38 to the financial
Obligations under repurchase statements – pages 246, 252 and
agreements are used primarily by the 253].
Group as short-term funding and as
a product for corporate and individual 2016 2017 2018 2019 2020
wealth clients. The portfolio increased
* Equity attributable to stockholders of the parent.
to $211.4 billion, an increase of $36.8
billion or 21% over the prior year. This
continues to be a significant funding
source for some subsidiaries within the LIABILITIES UNDER ANNUITY, INSURANCE &
Group and represented 13% of total INVESTMENT CONTRACTS BY CURRENCY
3% OTHER
liabilities (September 30, 2019: 12% of
total liabilities).
Obligations Under 15% JMD

Securitisation Arrangements
1% GBP
Obligations under securitisation 28% NAF 6% USD
2% EUR
arrangements totalled $71.1 billion,
which represents a $22.8 billion
or 47% increase over the previous
year. On September 30, 2020 NCBJ
finalised a structured financing
transaction involving the securitisation
of its Diversified Payment Rights 45% TTD
(“DPR”). Under this securitisation
transaction, NCBJ assigned its rights
to all present and future DPRs to an
offshore special purpose vehicle,
which then issued notes secured by

CONTINUED
NCBFG TOTAL SHAREHOLDER RETURN

Three Year Five Year
2016 2017 2018 2019 2020 CAGR CAGR
For The Year Ended September 30 (%) (%)
Closing Price of Common Shares ($ per share) 41.55 87.02 124.52 208.79 130.90 15% 36%
Dividend Paid ($ per share) 2.35 2.70 2.70 3.40 1.90 (11%) (4%)
Three Year Five Year

Shareholder Shareholder
Return Return
NCBFG Shareholder Return (%) 58% 116% 46% 70% (36%) 60% 419%
JSE Index Annual Movement (%) 71% 60% 36% 44% (26%)
Stockholders’ Equity required by each relevant regulator the risk-based internal assessments
in the specific jurisdiction and a and regulatory requirements with
The Group’s total stockholders’ equity capital management plan, guided an overall objective of maintaining
was $200.2 billion, an increase of by the Group Capital Management financial strength. During the year,
$16.3 billion compared to prior year. Policy, is developed to meet these the key regulated entities met or
Equity attributable to stockholders of requirements. The Group’s capital exceeded the minimum regulatory
the Company grew to $156.1 billion, management plans are focussed requirements.
an increase of $8.5 billion, or 6% over on maintaining adequate levels
the prior year. The return on average of capital, optimising the Group’s [A summary on capital management can
equity for the Group decreased to portfolio in accordance with balancing be found in note 50 (f) to the financial
12.57% compared to 21.52% in the shareholder risk-return objectives and statements – page 338].
prior year. maintaining flexibility in responding
to changing market conditions. The
aim of capital adequacy is to ensure Dividend and Shareholders’
Capital Management sufficient capital is held in excess of Return
The Group’s objectives when The closing share price on the

managing capital are broader Jamaica Stock Exchange as at
23.7%
than the equity presented in the September 30, 2020 was J$130.90
statement of financial position. Our per share (September 30, 2019:
capital management processes J$208.79) which resulted in a price
are in place to ensure compliance Dividend pay-out ratio earnings ratio (current share price as
with capital requirements set by the
(dividends per share divided a percentage of per share earnings) of
by earnings per share)
relevant regulators; safeguard the 16.34 (September 2019: 16.97). The
Group’s ability to continue as a going share price on the Trinidad & Tobago
concern in order to provide returns Stock Exchange as at September
1.45%
for stockholders and benefits for 30, 2020 was TT$7.75 per share
other stakeholders; maintain a strong (September 30, 2019 – TT$10.44).
capital base to support development
Dividend yield (dividends On November 7, 2019, and January
of our business and optimise capital
paid as a percentage of 30, 2020, the Board of Directors of
allocation within the Group to
share price) NCBFG (“Board”) declared interim
maximise value.
dividends of $0.90 and $1.00 per
Our management team recognises ordinary stock unit, respectively.
that the maintenance of adequate However, on April 30, 2020, the
capital and the management thereof
are critical to ensuring that regulatory
requirements, strategic objectives
$1.90
Dividends per share paid
Board decided not to declare an
interim dividend in the prevailing
circumstances arising from the
and shareholder expectations are met during year COVID-19 pandemic. The Board
each financial year. Each regulated did not declare any further interim
entity within the Group is required to dividends for the remainder of the
hold a minimum amount of capital as financial year.
AC C EL ER ATE 88
STRATEGIC
PRIORITY
02
ACCEL ERATE
Inspired
People
and Culture

When everyone on the team looks forward to the

same victory, it’s a win-win situation for everyone.
We believe in inspiring our people to not just
participate in the race, but to also own the success.
AC C EL ER ATE 90
CEO’s Message
I am confident that we are

well-positioned to continue
accelerating towards our vision for
the future.”

When the World Health accounts online and introduced NCB Quick Save, which
helps the unbanked population access the formal banking
Organisation announced in March system with easier account-opening requirements. Other
similar efforts towards ensuring safe and wider access for
2020 that the COVID-19 outbreak customers included a heavier push for the use of our mobile
had become a pandemic, the world banking app, the installation of braille kits at our ABMs
to help the visually impaired, and giving in-branch service
as we knew it was upended. This priority to senior citizens, many of whom we recognise will
fast-evolving health crisis caused take a longer time to transition to self-serve options using
the digital channels.
disruption, forcing us to confront
the reality of restrictions, which for Empowering Our Customers
While our organisation itself is evolving, so is our customer
many signalled fear and loss. base. From businesses shifting to e-commerce and
customised financing, to individuals requiring always-on
Yet, while the uncertainties tested our resilience, I believe services ranging from electronic payments, fast loans and
that the response to crises can never lie in capitulation, but attractive card reward options to tailored investments and
in adapting and pushing past obstacles. After all, it is in financial planning, we are transforming NCB to be the digital
times like these that our organisation’s purpose to serve financial provider of choice. Our goal is to empower our
becomes paramount and we see our ability to respond to customers through seamless integrated experiences across
the needs of a changing environment being defined. all delivery channels, backed by reliable and secure digital-
first financial solutions.
Responding to the Crisis
Having assessed the ramifications, we promptly developed I am proud to acknowledge that our efforts have not gone
a slate of actions designed to help our customers navigate unrecognised by the international financial community. For
the inevitable challenges. By the middle of March, our the seventh consecutive year, we have earned the honour of
customers were being offered moratoria on loan payments, being among Global Finance Magazine’s Safest Banks in the
reduced lending rates, pre-approved access to increased World, and one of the World’s Best Banks.
credit, fee waivers and free digital channel transactions.
Our branch protocols and facilities were revised to ensure Positioning for the Future
adherence to physical distancing measures and we invested Amidst the upheaval that occasioned this financial year,
in moving over 50% of our employees to remote work, in our business achieved commendable results. This would
order to enhance safety and to ensure business continuity not have been possible without pulling on the tenacious
across our operations. Additionally, the N.C.B. Foundation spirit of our leaders and their teams, thinking creatively and
stepped up with $25M in funding for over 3,000 displaced responding with agility. I thank them wholeheartedly for their
Jamaican workers to pursue professional short courses, contribution.
which would qualify them for new income streams to help
during these most trying economic circumstances. We are making sure not to waste this crisis. By recognising
the implications and taking the necessary strategic strides
Transforming our Business in the year, I am confident that we are well-positioned to
Perhaps the most pivotal opportunity emerging from this continue accelerating towards our vision for the future.
crisis has been the rapid advancement of a digital revolution
which was already underway. In the financial services On behalf of the NCB family, I take this opportunity to
sector, the benefits of transacting digitally include safer express deep appreciation to our customers, investors and
and more convenient options for customers to perform supply partners for their support during a tumultuous year.
day-to-day activities like paying bills and making purchases May everything we experienced adequately prepare us for
at a time when health risks have significantly increased. the next level of normal, and may we all continue to grow
While NCB has been at the forefront of digital innovation in from strength to strength, inspired by the desire to create
Jamaica, we quickly realised that our digital business model a positive legacy for those whose lives we touch along the
implementation needed to be fast-tracked if we were going way.
to continue providing requisite financial services within the
context of the pandemic’s constraints.
Accordingly, several branches were converted to a digital-

first model, giving customers more self-serve capabilities.
We increased our ABM footprint to over 300 machines, Septimus “Bob” Blake
representing the largest fleet in the island. We launched CEO – National Commercial Bank Jamaica Limited
our remote onboarding solution to enhance the opening of
AC C EL ER ATE 92
CEO’s Message
We have used the recent crisis to

accelerate towards our strategic aspiration
of becoming the best bank in Bermuda.”

The 2019/2020 financial year has been pivotal,

to say the least. The COVID-19 pandemic
impacted us beyond anything we could have
imagined. However, by holding firm to our
noble purpose which states, “We make it easier
for clients to navigate their financial future,” we
have been able to focus on client needs and
to be agile in our thinking and execution. It has
also provided us a unique opportunity to focus
on our inner transformation and growth.
Over the last 12 months, we have further focussed our sights on building a
bespoke business centered around our clients in wealth management and
commercial banking. We have also made investments in technologies to
support our robo-advisory and discretionary asset management business, such
as iInvest and iPortfolio, as well as our loan portals and digital onboarding, to
help clients see how much easier, simpler and faster banking virtually can be.
We have also continued to invest in developing our people, with significant

training, enhanced performance management, and recognition programs. In
addition, we have made progress on our diversity, equity and inclusion efforts,
ensuring that Clarien is a place where our team members feel they belong and
can bring their best self. We remain confident in achieving our aspiration to
become employer of choice.
Even during these difficult and uncertain times, we have continued to make
investments in our local community in Bermuda – continuing our long-standing
support of youth development and education. We have continued to give back
both financially as well as in terms of staff volunteer hours. We are proud to
support Bermuda.
Yes, 2020 has brought with it challenges. However, we have leveraged our
culture and our mindset to translate these challenges into opportunities.
The impacts and headwinds of COVID-19 are not fully visible; however Clarien
is positioned to be able to manage through these and continue to grow
profitably for the benefit of our clients, community, staff and shareholders.
Sincerely,
Ian Truran
CEO – Clarien Bank Limited
AC C EL ER ATE 94
CEO’s Message
Although we are the leading insurer

in the Caribbean region, with operations
in fourteen territories, we know that we cannot
become complacent.”

The 2019/2020 financial year to improve our service to our customers, launching
cross-selling initiatives which will allow us to increase
has been a very significant our ability to offer customers adequate protection and
one for Guardian Group. We investments, and creating a more integrated company
between life and general insurance, as well as asset
achieved an increase in profits, management.
reflecting strong financial Developing A Healthy Corporate Culture
performance for the period, To add maximum value to our fast-changing
environment, one of our major drivers from 2019 until
which is one of our strategic now continues to be a focus on building a strong
aspirations. corporate culture - a culture that fosters a new internal
mindset hinged on creativity, ideation and innovation,
founded in the passion of our people across all our
We saw our hard work result in the achievement of territories.
several important milestones to position the Group for
the future. We commenced our journey to make us Creating Opportunities for Employee
an insurer grounded on innovation, superior customer
Growth and Engagement
service, efficiency and deep financial strength, by
As the Guardian Group grows, there will be many
shaping our processes and capabilities to steer the
opportunities for our employees to grow together
organisation and deliver on its goals, through first-
with the organisation. Having a talent pool with the
world technologies.
right skills and experience is yet another pillar to
achieve success. Through our organisational health
Our Strategic Direction and succession planning initiatives, employees
This deliberate strategy to make our business more
are encouraged to adopt new skills, take up
resilient will transform Guardian Group into a world-
more responsibilities and be unfazed in the face
class insurance, wealth management and investment
of challenges. As part of our transformation and
banking group. We will hold ourselves to the best
development efforts, our employees now have greater
international standards in how we deliver strong
access to advance and align to the new opportunities
financial performance to our shareholders, how we
presented within the organisation.
treat our customers, how we treat our employees
and how we positively impact the markets in which
With a strong legacy of over 170 years, Guardian
we operate. Having established a strong trajectory
Group is prepared for what lies ahead. In the
of growth and consistency with our parent company,
2019/2020 financial year, we recalibrated, and now we
NCB Financial Group Limited, we now look forward
are ready to move resolutely in disrupting the market.
to deploying these strategies in building a strong
foundation of growth.
Sincerely,
Although we are the leading insurer in the Caribbean
region with operations in fourteen territories, we know
that we cannot become complacent. This is because
the financial services landscape continues to change
rapidly due to increased digital connectivity and a shift
in customer behaviour. We welcome this as a positive
development as this will create significant opportunities Ravi Tewari
for Guardian Group. As such, work has begun on CEO – Guardian Group
making substantive changes to our business. These
include increasing the use of analytics and automation
AC C EL ER ATE 96
STRATEGIC
PRIORITY
03
ACCEL ERATE
Delighted
Customers

We are going full-speed ahead on this journey to help our

customers succeed in everything they do. We are there to help
them stay on track every step of the race, from the starting line,
through every detour, and even on the victory laps.
AC C EL ER ATE 98
MD&A
Our Business
Operations
COMMERCIAL BANKING
Done through NCBJ and Clarien Bank, the Banking operations for the NCB
Financial Group underwent a number of significant changes, especially in
the light of the COVID-19 restrictions that were imposed by governments in
Jamaica and Bermuda.

CONTINUED
NCB FINANCIAL GROUP
Operating
Groups Banking & Investment Activities Insurance Activities
Operating Consumer Corporate & Payment Treasury & Wealth, Asset Life & Health General
Segments & SME Commercial Services Correspondent Management Insurance and Insurance
Banking Banking Banking & Investment Pension Fund
Banking Management
Lines of PERSONAL BANKING CREDIT CARD LIQUIDITY REGIONAL ASSET INDIVIDUAL AND PROPERTY
Business ISSUING MANAGEMENT MANAGEMENT GROUP LIFE INSURANCE
PRIVATE BANKING INSURANCE
CARD ACQUIRING CORRESPONDENT INVESTMENTS CASUALTY
COMMERCIAL BANKING BANKING HEALTH INSURANCE
CORPORATE INSURANCE
LENDING/CREDIT WHOLESALE FINANCING
FUNDING ANNUITY
DEPOSITS INVESTMENT PRODUCTS
FOREIGN BANKING
EXCHANGE PENSION FUND
MANAGEMENT BROKERAGE MANAGEMENT
SERVICES
Through these segments, NCBFG is able to serve its customers with a

wide range of specialised and customised financial products and services.
In keeping with global industry business began to make its shift from
standards, digital identity verification its traditional operating model, to
tools such as video calls and digital a digital-first banking environment.
signatures have been engaged to This led to the closure of five physical
ensure compliance with regulatory locations in Jamaica, as well as the
standards in Bermuda and Jamaica. transformation of 14 other locations
CUSTOMER NCBJ customers who take advantage into ‘digital branches’.
ONBOARDING NOW of online account-opening are also
ONLINE simultaneously given access to Quisk, At the digital branches, cash
the Bank’s mobile money solution. transactions are now only facilitated
at the intelligent ABMs in the Bank on
the Go facilities. This move decreases
the need for customers to go in-
A huge thrust for the banking segment person to a branch to conduct their
in both territories was the introduction business. It also decreases waiting
of online account-opening. Although time for customers, and helps with the
this feature, along with customer maintenance of physical distancing
onboarding, had already been in the requirements.
pipeline for the business, both were INTRODUCING THE
certainly fast-tracked by the ongoing UPGRADED ‘DIGITAL
pandemic. Both NCBJ and Clarien
BRANCH’
Bank Limited successfully introduced
digital account-opening and customer
onboarding solutions, which enabled
customers to open an account without
visiting a physical location. This was undoubtedly a year of big
changes for the Consumer Banking
segment in Jamaica too, as the
AC C EL ER ATE 100
MD&A
Our Business
Operations CONTINUED
are able to access financing online, competitive borrowing rates as low

with disbursement to their accounts as 6.5% for qualified borrowers for
on the same day the application is terms of up to six years. NCBJ also
completed and approved. Similarly, committed to making it easier for
NCBJ customers applying for MSMEs to access funding by relaxing
home and auto loans have access the collateral requirements, and
MAKING BANKING to improved digital portals, which partnering with organisations such
MORE ACCESSIBLE also provide assistance in all areas as the Development Bank of Jamaica
of their journey. Home-buyers, for (DBJ), and the United States Agency
example, have access to a checklist for International Development (USAID).
which walks them through all stages
of the home-buying process, along NCBJ’s $3 billion partnership
In pursuit of its goal to improve with databases of NCBJ-approved with the DBJ is the largest of any
financial inclusion in Jamaica, NCBJ surveyors and valuators. commercial bank in Jamaica, and
introduced its Quick Save account, allows MSMEs facing collateral
with relaxed opening requirements Access to short-term Fast Cash or constraints to take advantage of the
for low-risk customers. The Quick Pay Advance loans from NCBJ is DBJ’s credit enhancement facility,
Save account caters specifically to also much simpler, now just requiring which guarantees 80-90% of their loan
persons who can declare a specific pre-approved customers to accept a amount. Likewise, USAID provides
source of consistent income such digital offer via email, online banking guarantees for as much as half of the
as retirees who receive pensions, or the mobile app, with immediate loan amount for renewable energy
and beneficiaries of government disbursement to their accounts. enterprises, up to a total of US$25
subsistence payments. Quick Save Customers who are not pre-approved million.
account-holders are only required to can also submit an application online
present a Government of Jamaica- to access other types of personal
issued ID and a Taxpayer Registration loans.
Number (TRN) to initiate onboarding.
This account also offers additional
benefits for senior citizens, such as fee
waivers for select transactions.
IMPROVING CUSTOMER
EXPERIENCE THROUGH
SEGMENTATION
EASIER FINANCING
FOR MSMES
DIGITAL LENDING To ensure that there was clarity and
focus on delivering prime value for all
customers, the Retail and Corporate
Even before the emergence of quite Banking Divisions of NCBJ were
a number of new micro, small and further segmented into Consumer,
Another area of the business in medium enterprises (MSMEs) during Corporate and Commercial, and
which both NCBJ and Clarien Bank the pandemic, NCBJ had pledged to MSME Banking, which allows the
have made significant strides is increase its support for the segment. business to hone in on the specific
digital lending, and the enhancement To this end, NCBJ has not only and unique needs of each segment,
of digital end-to-end journeys for reserved a $20 billion pool of funds to and work closely with them to design
customers. Pre-approved customers finance the segment, but also offered and deliver the right solutions to fit
their needs.

CONTINUED
OUTLOOK AND PLANNED

INITIATIVES FOR FY21
The core banking business offered through NCBJ also continues to explore ways of
NCBJ and Clarien Bank continues to undergo streamlining its lending processes and
substantial improvements in the areas of requirements in order to significantly enhance
digitisation and modernisation. Both subsidiaries ease of access to financing for MSMEs.
continue to drive the migration of transactions to
their respective digital channels with incentives
In Jamaica, the ongoing branch modernisation
such as fee waivers, convenience and ease-of-
and optimisation exercise continues, and will see
use.
physical facilities being upgraded to facilitate
more access to the Bank’s digital solutions. While
An instrumental part of this process is customer the pivot to digital banking has been met with
education. To achieve this, NCBJ has embarked apprehension by some customer segments, the
on a comprehensive customer education mandatory experience of adopting technology
campaign – Easy | Safe | Free – designed to for preservation of health and safety creates
deliver financial literacy education, promote the more openness for transformational digital
migration of transactions to digital channels, initiatives by the business. NCB Financial Group
and remind customers of all the ways they can has every intention of riding this wave towards
benefit from the Bank’s digital offerings. This the achievement of its 2024 ‘digital to the core’
campaign was launched in September 2020, and strategic aspiration.
will continue throughout FY21.
AC C EL ER ATE 102
MD&A
Our Business
PAYMENT
SERVICES
Amidst a series of unprecedented challenges, including considerably reduced
consumer spending, declining international trade, and physical lockdowns,
the Payment Services operations had to be agile and responsive in providing a
number of innovative solutions for both merchants and customers to navigate the
new commercial environment.
While exploring ways of mitigating significant reductions in net profit due to the
decline in spending volumes, NCBFG’s Payment Services operations responded
by launching an enhanced suite of e-commerce solutions and digital capabilities
into the market.
E-COMMERCE CONTACTLESS QUISK MOBILE MONEY

SHOPPING
To support MSMEs and corporates Another digital payment solution that

seeking to get online and engage While cash continues to be one of has seen tremendous growth since
customers via e-commerce, the the primary payment methods used the pandemic is Quisk, NCBJ’s mobile
business introduced a number of in Jamaica because of widespread money solution. This convenient
solutions, including convenient acceptance, customers have now mobile payment option, which enables
payment buttons for merchant become more conscious of the health, customers to access some financial
websites and social media, as well as safety and convenience benefits services via their smartphones, saw
easy-to-use website templates. associated with contactless and an increase of 69% in customer
mobile payment options, especially transaction volumes and value, when
So far, the platform has seen since the outbreak of COVID-19. compared to the last financial year.
significant increases in transaction
volumes – which are expected to Customers now benefit from an
grow tremendously with the ongoing increased layer of security with chip
transformation of consumer shopping and PIN features and tap-and-go
behaviour, and increasing preference functionality rather than traditional
for online transactions. Prolonged swipe cards. All the latest payment
curfews, lockdowns and restriction card releases in NCBJ’s Payment
of physical movement have led to an Services portfolio include this feature
increased surge of interest in online – including the Visa Debit and Visa
shopping, and increased MSME Signature cashback products. The
adoption of e-commerce solutions. business will continue the roll-out
of this feature on all other Visa and
MasterCard products in FY21, in
addition to further upgrading of its fleet
of point-of-sale (POS) terminals.

CONTINUED
OUTLOOK
AND PLANNED
INITIATIVES
FOR FY21
LAUNCH OF NEW ONLINE CREDIT CARD NCBFG’s Payment Services

PAYMENT SOLUTIONS APPLICATION segment continues to
pursue a trajectory of
maximum digitisation, with
key focus on optimising
current solutions, and
With the demand for digital payment Following the successful launch of
delivering fully-digital
solutions on the rise, Payment an online credit card application for
onboarding of merchants
Services also introduced a new range pre-approved NCBJ customers in
and cardholders. By 2024,
of cards to meet the demands of the 2019, the business has now made
this segment aims to
Jamaican market. This has included it possible for non-NCB customers shift its end-to-end digital
the long-awaited Visa Debit Platinum to apply online. The fully digital end- capabilities from 15% to at
and Visa Debit Classic cards. Another to-end platform allows customers to least 80%. This shift will see:
key payment card launch this year view NCBJ’s suite of products, apply
was the Visa Signature cashback for the card of their choice, upload f Optimisation of all
credit card, for customers who prefer supporting documents and then track online channels to
cashback instead of travel rewards. their application. Once approved, eliminate manual
customers can also activate their new processes for the
card online. customers
f Expansion of digital
onboarding at each
customer touchpoint
(iABMs and Kiosks)
f Enhanced regulatory
framework to remove
REWARDS the manual verification
process of customer
MANAGE MY CARD authentication
PORTAL
f Seamless omni-channel
Cardholders are now offered a wide card activation, to
range of rewards, including cashback, include POS, iABM,
travel rewards, shopping discounts, VoIP, mobile app, SMS
and more. To give customers in Along with the capabilities to block and more.
Jamaica more reward options and or unblock cards, update contact
an automated rewards platform, the information to receive transaction Payment Services continues
business launched the pilot phase of alerts, request the replacement of to enhance the security
the migration of customers from the damaged, lost or stolen cards using capabilities of its platforms
legacy My Rewards platform to NCB NCBJ’s Manage My Card portal online, with the necessary updates
Miles. This enhanced portal not only work has also begun on improving the and certifications to
allows customers to redeem points fraud alert capabilities of the platform. ensure compliance with
for travel, but it also enables them to the international payments
make payments in-store and online industry requirements and
with their points. Best of all, it can standards.
be accessed online, or via the mobile
app.
AC C EL ER ATE 104
MD&A
Our Business
TREASURY &
CORRESPONDENT
BANKING
Although its primary focus continues to be on delivering
strong financial performance, NCB Financial Group’s
treasury operations had to pivot quickly to business
continuity mode – managing and mitigating the
liquidity risks emerging from the COVID-19 pandemic. f
INTRODUCTION
OF THE PRODUCT
FACTORY
f Raising US$250 million in
funding by means of a Diversified
Payments Rights Securitisation,
in order to shore up US dollar Another major initiative undertaken
liquidity for NCBJ during the period was the continued
ENSURING BUSINESS development of NCBJ’s Treasury &
CONTINUITY f Ensuring that core liquid assets Correspondent Banking’s Product
Factory. Focussed on developing
were strong, and could provide
world-class banking solutions for
sufficient and sustainable buffers
customers in the corporate and
against common liquidity shocks
commercial sectors, as well as
In an environment that is still reeling coming out of the pandemic – financial institutions, the Product
from substantial economic contraction such as possible loss of deposits, Factory is driven by researching
and a general decline in asset prices, and decreasing cash-flows due to and understanding the needs of the
the Group’s treasury operations - late or non-payment of loans customer, and responding with the
between NCBJ and Clarien Bank most effective cash management and
- undertook a number of crucial f Providing liquidity to ensure foreign exchange hedging solutions.
initiatives to ensure that its ability to These products are set for release and
that Jamaican customers had
meet its regulatory and commercial customer adoption in FY21, and are
continuous access to foreign
obligations would not be negatively expected to give customers access
currency, despite the significant
impacted, in spite of the exceptional to alternative deposit products, and
circumstances. These measures decline in flows resulting from the
help them to manage their foreign
included: pandemic.
exchange exposure.
OUTLOOK AND PLANNED INITIATIVES

FOR FY21
NCBFG remains optimistic about its treasury business’ ability to withstand any future economic shocks that
may emerge from the pandemic, and continues to monitor and adjust its operations to bolster resilience. FY21
will also see the release of a number of solutions from the Product Factory, while development and customer
adoption will be ongoing. Although the team has become fully remote, the business has also ensured that
customers continue to have seamless access to its services via secure digital platforms.

CONTINUED
WEALTH, ASSET
MANAGEMENT &
INVESTMENT BANKING
The impact of the ongoing COVID-19 pandemic on the global and local Wealth, Asset
Management and Investment Banking industry was immediate. As asset prices dropped,
and market activity slowed, the business was forced to enter problem-solving mode and
quickly pivot. NCBFG sought to ease its clients’ concerns around their investment portfolios,
by discussing and implementing strategies to mitigate the impact.
Importantly, the investment banking

team was also able to shift focus to
more corporate bonds and structured
product transactions, accomplishing
several landmark transactions
across the region. This process also
allowed clients to participate in new
investment opportunities to boost
their portfolio yields. Additionally,
the Group continued to focus on
improving customers’ experience
through investments in and innovation
of its electronic channels.
These early investments proved

timely as they allowed the Group
to continue to serve clients in the
new norm created by the pandemic.
Furthermore, although asset prices
have recovered some ground, they
remain depressed, when compared to
their end-of-2019 levels.
Given the impact of this on the

investment portfolios of clients, NCB
Capital Markets Limited (NCBCM)
spent much of the year developing
strong-performing investment
solutions in the form of Stratus
Alternative Funds. The Stratus suite,
recently launched in Q1 FY21, will
deliver more attractive and stable
returns and allow for better portfolio
diversification for clients, while
allowing NCBCM to maintain its
competitive edge over other industry
players.
Despite the challenges in the

operating environment, NCBCM’s
investment banking team was
undeterred in its commitment to
provide financing solutions to its
corporate and institutional clients.
Consequently, NCBCM accomplished
several landmark transactions across
the region, including:
AC C EL ER ATE 106
MD&A
Our Business
f Leading the financing for the f Arranging a bond issue for providing flexible funding solutions to
award-winning US$225 million Guardian Holdings Limited for sovereign and commercial entities, and
international bond raise of TT$650 million, and securitisation ultimately transforming the customer
TransJamaican Highway Limited deals totaling TT$150 million experience through the optimisation of
(TJH) in Jamaica and the Cayman the business’ digital capabilities and
Islands. The TJH financing is f Coordinating participation for offerings.
the largest infrastructural project Guardian Life in a Government
undertaken in the English- of Trinidad and Tobago (GOTT)
speaking Caribbean to date. primary issue, and brokering
NCBCM was lead arranger for the secondary bond trades for
highly-subscribed and successful approximately TT$1.2 billion.
initial public offer (IPO) as well as
being the co-manager with UBS In addition to completing almost one
(a global firm providing financial significant transaction per month, the
services) for the international business increased its junior market
capital market raise. Moreover, offerings, incentivising participants ALTERNATIVE
this project created the largest with free (no-fee) listings. In Jamaica, INVESTMENTS
single investment opportunity Tropical Battery Company Limited
for Jamaican investors, with the was one company that was able to
issuance of 10 billion ordinary take advantage of these offerings –
shares – raising close to $14.1 partnering with NCBCM to jumpstart
billion, which is also a record- the ‘post-COVID-19’ IPO market Recognising the emergent need
breaking equity raise for Jamaica, with an offer that was quickly for flexible funding solutions for
and a significant regional oversubscribed. business and government projects
achievement - especially those coming out of the
Given the impact the pandemic pandemic - the business began to
f Brokering a BDS$100 million bond had on investment portfolios, the set the foundation for the launch
for Barbados Port Inc. through business has changed course in of the Stratus suite of funds, which
NCB Capital Markets (Barbados) order to continue delivering strong-
will include an Infrastructure Fund, a
Limited, which was designed to performing solutions to investors and
Mezzanine Fund (Caribbean Mezzanine
provide working capital for the maintain its competitive edge over
transformation of the Port of other industry players. This new focus Fund II) and an Opportunistic Fund.
Bridgetown in Barbados rests on developing and delivering This suite of alternative investment
strong alternative investment offerings, products offer investors diversification
and access to asset classes with good
rates of return.

CONTINUED
OUTLOOK AND
PLANNED INITIATIVES
FOR FY21
DIGITAL f NCBCM and Clarien A successful wealth

TRANSFORMATION both continue to focus management business is built
OF THE CUSTOMER on enhancing the client on its people; recognising this,
EXPERIENCE experience, with the NCBFG continued its talent-
support of world-class building Analyst Initiative and
digital solutions. This invested heavily in leadership
effort is ongoing, and and technical training of our
Continuing on the momentum of the business aims to people during the financial
the ground-breaking GoIPO launch simplify the complete user year. NCBCM onboarded its
in the previous year, the Wealth,
experience. Our clients second cohort under its Analyst
Asset Management and Investment
Banking arm of the business has made can also look forward to Initiative, with analysts from the
significant strides in the improvement additional functionalities on first cohort taking up roles in
of the overall customer experience our online platforms and Investment Banking, Alternative
using technology. Customers are the launch of our mobile Investment and Fund
encouraged to take advantage of
app. Management and Research.
the wide range of digital offerings,
a process which has also been NCBCM remains committed to
accelerated by COVID-19. f NCBCM is currently this initiative and expects that
undertaking an upgrade the third cohort will join the
NCBCM, for instance, has overhauled which will enable both NCB team in FY21.
its online platforms – enabling and non-NCB customers
customers to open equity accounts
to apply for, and maintain
online, trade equities and unit trusts The team continues to invest
online and seamlessly subscribe to an account online. With
heavily in leadership training,
IPOs from anywhere in the world increased reliance on
using GoIPO. The company has also portfolio management, and
remote support as well, the
introduced a Wealth Hub, a full-service other technical training to
business strives to improve
remote customer support centre ensure that the team is
its customer support and
designed to facilitate the maintenance competent and equipped with
of client relationships remotely, along the quality of its service
all the tools needed to deliver
with service delivery. delivery to customers
superior products and services
through dedicated advisory
In the same way, Clarien has to clients, and increased value
and service support. The
invested heavily in the development to our stakeholders.
business is also actively
and ongoing improvement of
pursuing the development
two of its growing investment
products – iPortfolio, a personal of its own integrated
investment portfolio which allows mobile application.
self-management by clients using
a desktop, tablet or mobile phone; f Official launch of the
and iInvest, an easy-to-use digital
Stratus Infrastructure Fund
tool designed to help clients build a
low-cost, individualised investment across the Caribbean.
portfolio.
Guardian Asset Management has also

seen a climb in adoption of its digital
solutions, with over 100 customers
opting for electronic statements
between January 2020 and September
2020. Additionally, the company has
implemented a telemarketing team
focussed on providing remote service
delivery to both new and existing
clients.
AC C EL ER ATE 108
MD&A
Our Business
LIFE, HEALTH
INSURANCE & PENSION
FUND MANAGEMENT
In order to maintain viability and stakeholder value in the current economic
climate, transformation of the Life and Health Insurance segment has been
paramount. The key drivers of this transformation include streamlining the
Group’s insurance business, focus on digital expansion of services, introduction
of new and enhanced products, sales effectiveness, growth of the pension fund
management business, and strengthening of the support offered to customers.
The pension aspiration continues to be

propelled by the Group’s track record
and expertise in managing pension
fund portfolios over the last 60 years.
The focus for the year was on portfolio
growth, as well as strengthening client
relationships.
STREAMLINING AND
GROWTH OF THE
INSURANCE BUSINESS
In order to benefit from economies

of scale and experience, while
continuing to optimise product and
service offerings for our customers,
the offerings in NCBFG’s insurance
portfolio (spread between NCB
Insurance Company Limited (NCBIC)
and Guardian Life Limited (GLL))
were fully transferred to GLL. In this
regard, the Group received approval
from the authorities, and successfully

CONTINUED
transferred 100 percent of NCBIC’s Additionally, NCBIC launched a

portfolio of insurance and annuities multi-channel team to support their
business to GLL. individual business line and proactively
penetrate the Group’s customer
NCBIC was also registered as an portfolio. This team is responsible
insurance agent under the Insurance for supporting the sales and GROWTH IN THE
Act under a new company name, communication efforts of the business
PENSION BUSINESS
NCB Insurance Agency & Fund through multiple channels including
Managers Limited. This new email and SMS.
entity sells insurance products as
an exclusive agent of GLL, while
continuing the provision of pension During FY20 NCBIC focussed on
fund administration and investment growth in the pension portfolio, as well
management services. as strengthening client relationships.
A key initiative in this segment was the
launch of pooled pension-managed
funds which make available pension
DIGITAL funds for persons desirous of enjoying
significant yield without having to
ENHANCEMENTS
expend significant effort in managing
the types of underlying investments.
Focus was placed on digital

enhancements of the Group’s
TRANSFORMATION insurance operations, with a range of
AND SALES initiatives geared towards improving
efficiencies and driving improvements
EFFECTIVENESS OUTLOOK
in customer experience. GLOC
implemented several digital solutions AND PLANNED
as part of the support mechanism for
INITIATIVES FOR
FY21
its sales efforts, inclusive of a Needs
During the financial year, Guardian Analysis tool, which assesses clients,
Life of the Caribbean Limited (GLOC), and provides recommendations on the The Group’s main
embarked on a transformation product categories most suited to their aspiration is to completely
process. In this process, the most needs. digitally evolve its internal
critical initiative was a cross-sales processes. This is expected
initiative aimed at increasing the This was supported by the analytical to help transform customer
number of policies owned by existing tools implemented to support
and agent experiences,
clients. To support this initiative, segmentation of the Group’s client
and improve all key
work commenced on key enablers base, and predictive analytics tools
productivity measures. For
surrounding support of the sales which categorise clients, and then
process, inclusive of a needs analysis, use this information to guide the the upcoming financial year,
client segmentation, and predictive recommendations for the client’s focus will be placed on
analytics tools to determine product product choices. implementing products and
recommendations for clients. process improvements that
For GLL, close to 85% of customers drive improved profitability
Along with the cross sales initiative, have been transitioned to digital and significantly increase
there were several other sales force methods for both premium payments, customer experience.
effectiveness initiatives including and receipt of claims.
streamlining and enhancing the
sales process, sales training, and
the introducing of new incentives
to reward both staff and clients for
providing referrals.
AC C EL ER ATE 110
MD&A
Our Business
GENERAL
INSURANCE
Improving broker relations, customer retention and
digitisation of operations were major areas of focus to drive
the success of the general insurance portfolio. With a wide
regional footprint, Guardian General Insurance remains
one of the largest property and casualty insurers in
the Caribbean, which bolsters our general insurance OUTLOOK
segment. AND PLANNED
INITIATIVES
FOR FY21
During FY20, Guardian General motor quotations and information on
Insurance launched a digital customer all their policies and claims. There was
For the upcoming financial
portal, geared towards building world- a seamless transition to transacting
year, focus will be placed on
class capabilities in underwriting online, which included the processing improving process efficiency
and pricing, claims and customer of payments for both payables and improving customer
experience, all of which are powered and receivables, as well as issuing experience. In this regard,
by data, analytics and artificial certificates and cover notes. the following initiatives will
intelligence. This portal enabled be undertaken:
streamlining of these processes In addition, Guardian General
and capabilities, thereby enhancing Insurance Company Limited acquired f Customer Digital Portal
customer experiences. 100% of GG (OECS) Limited in – to provide enhanced
Grenada, which paves the way for customer user interface
and offer additional
The portal also enabled customers strategic development of the Group’s
functionalities to drive
to renew and pay for their motor and business in the Eastern Caribbean.
customer delight.
home policies online, as well as obtain
f Underwriting Process
Optimisation to
modernise – optimise
and transform the
underwriting process
across GGIL and
GGIJL.
f Claims Process
Optimisation – to re-
design the claims
process flow,
optimise claims
process efficiency,
and enhance the
customer experience by
implementing relevant
technological solutions.

CONTINUED
NCBFG’S COVID-19
SUPPORT
PAYMENT SERVICES BANKING TREASURY

OPERATIONS
Similar to the global payments When close to 140,000 tourism

industry, Payment Services has seen sector employees in Jamaica lost Like the rest of the organisation, the
a sharp decline in revenue due to the their jobs due to the closure of hotels COVID-19 pandemic has helped to
radical shift in consumer behaviour and related enterprises, and the BPO catalyse the adoption of more digital
world-wide since the start of the sector reported losses of close to $6 banking capabilities by customers and
pandemic. billion due to COVID-19 restrictions, employees. While the organisation
NCBJ stepped up to offer its support continues to operate in respect of
Nevertheless, Payment Services to help all those affected to weather physical distancing requirements and
showed unrivalled loyalty to both the storm. In Jamaica, corporate reduced face-to-face interactions,
its merchants and cardholders and commercial entities were also various technological aids have
alike. Some of the efforts to relieve able to take advantage of significant been engaged by TCBD to maintain
customers and businesses affected by moratoriums on principal repayment, and grow customer relationships in
the pandemic included: and gain access to extensive working the interim. Since the onset of the
capital. COVID-19 pandemic, the organisation
f Temporary waiver of POS rental has seen a noteworthy increase in
fees for some merchants in the Clarien Bank partnered with the number of digital transactions
severely-impacted Travel and the Government of Bermuda to conducted by customers, and
Entertainment sectors finance a number of community aid recognises a growing appetite for
programmes, designed to help ease digital solutions.
f Waiver of subscription fees for the national financial burden caused
new e-commerce merchants by the pandemic.
applying for NCB payment
buttons or website templates for Consumer and commercial customers
two months of both NCBJ and Clarien Bank also
benefitted from other far-reaching
f Payment holidays of up to COVID-19 relief measures, which
three months, and waiver of included loan repayment deferrals, fee
late-payment fees for qualifying waivers, and decreased interest rates.
customers
f Ongoing 0% minimum payment

plan for customers negatively
impacted financially by COVID-19
f Portfolio-wide reduced interest

rates and minimum monthly
payments up to September 2020.
AC C EL ER ATE 112
STRATEGIC
PRIORITY
04
ACCEL ERATE
Digital
to the
Core

The preparation before the big push is a key component

in the journey towards our goals. This is why we are
investing in, and carefully building a well-oiled machine
with the capabilities to wrangle any terrain.
AC C EL ER ATE 114
MD&A
Our Business
Enablers
TECHNOLOGY AND
DIGITISATION
Caught in the midst of its ongoing digitisation journey, NCB
Financial Group was already ahead of the curve by the time
the COVID-19 outbreak was declared to be a pandemic.
Tremendous strides had been made in increasing the organisation’s
digital capabilities and advancing its digital agenda, and efforts to
simplify customer experiences and provide seamless omnichannel
delivery of financial services to its customer base were already
underway.

CONTINUED
Leading up to the pandemic, for f Implementation of a system to f Successful introduction of NCB

instance, the organisation had also support Anti-Money Laundering Capital Markets online, which
made significant progress with (AML) efforts across the enables customers to buy,
end-to-end digitisation of a number Group, while bolstering the sell and trade equities, and
of other traditionally face-to-face AML monitoring system. This monitor the performance of their
services, while making provisions to has also helped the Group to investment portfolios online
mitigate against any possible safety remain compliant with regulatory
and regulatory risks. Increased requirements f Completion of the majority of the
reliance on customer data to define system modifications needed
customer journeys and improve f Deployment of a Customer to enable the transition to EMV
decision-making has also risen to the Relationship Management (CRM) debit, which NCB cardholders will
top of the organisation’s priorities, module to facilitate: be able to use for both local and
having been identified as a key driver • Cross-selling and upselling of international transactions
of customer experience. products
• Enterprise-wide tracking f Provisioning of e-statements for
of service requests and credit card customers, further
complaints reducing the organisation’s
• Real-time reporting on service environmental footprint.
requests
• Support for automated work
flows, case management and
knowledge-sharing
COVID-19 f Banking and eBanking core

ACCELERATING applications and infrastructure
DIGITAL were upgraded to include
TRANSFORMATION implementation of Finacle f
archiving and fraud monitoring SALES-SUPPORTING
solutions. This upgrade also TECHNOLOGY
enabled centralised customer
onboarding, as well as regulatory
In contrast to the disruptively slowing and management reporting
effect of COVID-19 on business facilities
revenues and the global economy, f Implementation of several digital
the ongoing pandemic has proven f Continued improvements to solutions to support the sales
to be a propellant for digitisation of the GoIPO online portal, which efforts of the Guardian Life
the banking and financial services facilitates paperless subscriptions of the Caribbean team. This
sector – driven by consumer demand to IPOs, and removes the need to includes a needs analysis tool,
for safe, world-class digital services, manage time-consuming, manual which automatically assesses
ease-of-use and convenience. operational components the client’s needs and makes
This acceleration of the digitisation recommendations on the most
process is industry-wide and is fast f Delivery of optimised self- fitting product or solution
levelling the customer experience service channels for customers, categories. Additional tools
playing field for those in the industry. empowering them with more implemented to support the sales
Nevertheless, the Group continues to freedom to do their banking on process include:
actively maintain its competitive edge their own time, wherever they are. • Digital workbenches to
with an agile response to customer This has been key in supporting process applications
needs, and creation of more intelligent the transaction migration efforts • Remote scanning tools for
systems powered by data. especially for NCBJ’s Corporate, agents to scan application
Commercial and Consumer supporting documents while
Since the beginning of FY2020, Banking customers in the field
a number of initiatives across the • Policy projection tools that
organisation have benefitted from f Introduction of remote onboarding enable agents to access
digitisation. Some of the major for customers, enabling the information wherever they
developments for the period include: organisation to fully onboard are, whenever they need it
customers remotely, with the
f Streamlined support for the support of other digital aids such
Jamaican ABM network to as videos, electronic document
improve uptime and service uploads and digital signatures
delivery
AC C EL ER ATE 116
MD&A
Our Business
Enablers CONTINUED
f Guardian General Insurance equipped with laptops and mobile

Limited (GGIL) also implemented phones, and were already familiar with
a digital portal for customers to the process of establishing secure
renew and pay for their home connections to the network using a
and motor vehicle policies online. Virtual Private Network (VPN).
Customers are also able to access REMOTE WORK
quotes for motor vehicle insurance With remote work becoming the
via the portal, as well as other primary modus operandi for everyone,
information on all their policies the Technology teams had to quickly
and claims. On the flipside, GGIL’s source additional equipment, bolster
sales team can also view their One of the biggest demands on the the capacity and resilience of the
portfolios online, and request technology team of any company network to handle the increased
quotations for their clients. this year has had to be support for traffic, and implement additional
remote working. This is especially safeguards against the associated
f Additionally, Guardian Shared true for the NCB Financial Group, risks.
Services Limited transitioned from the size of which alone made this
an outsourced data analytics a daunting consideration. Like the The organisation has also empowered
service, to an in-house team. This digitisation of many other services in its people with more digital solutions
move has also proven to be more the organisation, however, making and tools for collaboration to support
beneficial to the organisation, as the transition to remote work was their remote work efforts. These
they have more involvement with not as difficult as one would expect, include Cisco Webex, Trello, Asana,
the analytical process supporting given that a lot of the fundamental Jira, Zoom, Git, Slack, Microsoft
the sales team, and can tailor it to infrastructure had already been put Teams and more.
their specifications. in place. For example, a significant
percentage of teams were already
OUTLOOK AND PLANNED f Continued efforts will f With the goal of digitising
INITIATIVES FOR FY21 be made to achieve at between 70-80% of
least 90% migration of processes, the Fraud
transactions to digital Prevention Unit seeks to
As a Group, we will continue on channels in the short-term. enable customers to report
our journey to digitally transform This will include an effort and track their disputes
our operating model to create to create a centralised
experiences for our customers digitally, without the need
onboarding platform for to visit a physical location
that are simple, safe and secure, NCBJ and its subsidiaries,
reliable, and delightful. to file a report or complete
which will allow customers paperwork.
to easily open new deposit
f NCBJ has embarked on
a major IT transformation, and investment accounts
f Creation of an online sales
which focuses on online, without the need
process for individual health
modernising the architecture to update customer data
each time. The digital and immediate annuities,
and infrastructure, improving enabling agents to sell any
uptime and technology migration will be supported
by ongoing expansion of line of product using GLOC’s
resiliency, and refining the
operating model to build services available on our SalesPal online service.
a solid foundation for the digital channels and provide
acceleration of its digital support to help customers as
aspirations. they adopt the new solutions.

CONTINUED
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AC C EL ER ATE 118
MD&A
Our Business
Enablers CONTINUED
DIGITAL
CHANNELS
f Removed the binding ID and
The COVID-19 pandemic precipitated a global shift to digital PIN requirements for the RSA
channels in order to protect lives and livelihoods. Efforts security token to enhance
to contain the spread of the virus resulted in the the customer registration and
transaction experience, without
implementation of varying health and safety measures compromising on security
across the territories in which the organisation
operates, including curfews, lockdowns, and physical f Partnered with Jamaican telecom
providers to enable customers
distancing measures. utilsing their mobile phones
to access the organisation’s
Across the NCB Financial Group, transactions and an increase of websites, online portals and
significant efforts were made to approximately 19% in business online mobile app without data charges
accelerate the migration of customers banking transactions. Notwithstanding
to digital channels and help them to the industry-wide reduction in ABM f Implemented customer education
safely manage their financial affairs. transactions, the business processed and awareness campaigns, and
Other key functionalities were also over 30 million transactions, and updated demos and service
fast-tracked in order to digitally enable maintained its leadership position both guides to improve customer
a greater percentage of services, in ABM locations (37% market share), ability to utilise the organisation’s
improve accessibility, enhance the and in multilink transactions, with digital channels
customer experience and reinforce the 36% of market share. NCBJ’s ABM
security of the organisation’s digital fleet continues to be the most heavily f Upgraded ABM monitoring tool
channels. utilised by Jamaicans, irrespective to enable faster detection and
of their primary banking relationship. resolution of ABM issues, in order
NCBJ experienced significant growth The business also experienced over to increase availability of the fleet
in the adoption of its digital channels 100% growth in unique users on to customers
during the 2019/2020 financial year. the NCB mobile app platform, and
This resulted in a 48% reduction in realised significant improvements in
branch transactions, coupled with a user ratings, from 3.5/5 to 4.3/5 in the
ENABLE NEW
5% reduction in ABM transactions
due to COVID-19 restrictions. The
Google Play Store and from 3.0/5 to
4.6/5 in the Apple App store.
2 FUNCTIONALITIES:
capacity of the Customer Care
Centre was significantly impacted
as physical distancing protocols and f Enabled the following features on
the mobile app:
curfews resulted in a reduction of INITIATIVES EXECUTED
agent capacity, while call volumes FOR THE 2020
• End-to-end sign-up for
increased by 30%. To improve the FINANCIAL YEAR:
service experience, proactive curfew mobile app, including token
exemptions were sought; staff registration
members were trained to increase • RTGS transfers to other
their scope of knowledge, and banks
increased flexibility in scheduling and • Add other bank beneficiaries
re-assignment of additional resources ENHANCE ACCESSIBILITY and edit payees
was done to support in-branch and 1 AND CUSTOMER • Update email address and
telephone number
online banking queries. EXPERIENCE:
The reduction in transactions across f Self-service portal for customers

f Installed braille kits on over 80%
physical channels impacted by safety to manage their credit cards
of the Jamaican ABM fleet to
measures stimulated an approximately improve accessibility for visually-
100% increase in mobile banking impaired customers

CONTINUED
f Enabled debit card pinning at the and market information specific to

ABM and online their financial interests, and connect
with a network of wealth management OUTLOOK AND
f Created remote onboarding portal experts. iInvest helps clients build PLANNED INITIATIVES
to allow customers to update low-cost, individualised investment FOR FY21
contact information without portfolios and offers clients a real time
visiting a branch view of all their investments. It aims
NCBJ will continue to make
to make investing accessible and
simple. Throughout the pandemic, improvements designed
the Clarien Investment team kept its to enhance the digital
clients abreast of market trends and experience, improve access,
REINFORCE SECURITY OF
3 DIGITAL CHANNELS: value-added insights through regular expand functionalities, and
audio updates. reinforce security. These
include the introduction of an
Across the Guardian Group, omnichannel platform, which
The business continues to invest in customers were able to leverage digital will allow customers to interact
world-class security technologies for portals to renew and pay insurance with agents via platforms
its digital platforms in order to protect premiums online. The MyGuardianLife
customers. On our Jamaican ABM such as Chat, WhatsApp,
customer portal allowed Guardian Life
fleet, operating software has been Facebook, and Twitter. Audio
of the Caribbean customers to pay
upgraded from WIN-7 to WIN-10, insurance premiums online. Adobe guidance software will also
and implementation of a Payment Sign allowed secure digital signatures be introduced on the ABMs,
Card Industry (PCI) security patch to to replace a physical ‘wet’ signature. mobile and online platforms
improve security and reliability and This reduced the need to physically to assist visually impaired
to reduce fraud exposure for our transport paper-based forms and the customers. In addition, new
customers was completed. time taken to gather approvals. functionalities including loan
acceptance at ABMs, and
GGIL Trinidad implemented a digital expansion of digital wealth
portal for customers to renew and
4 DIGITAL ENABLEMENT: pay for their Motor and Home policies
management advisory and
trading services, foreign
online. Customers were also able to
currency, complaints and
obtain quotations for motor policies
and information on all their policies. service request functionalities
At Clarien Bank Limited, clients relied New features such as quotations via the online and mobile
on the iBank electronic platform, which for home insurance and claim banking platforms can be
was redesigned and relaunched, to registrations were enabled. The digital expected.
access their accounts safely and portals were supported by call centre
easily. Customers were able to pay teams dedicated to responding to
bills, make local and international customer queries and completing new Building on its strong
transfers, and open savings, current sales and policy renewals. foundation of innovative and
and CD accounts real-time. These first-to-market platforms,
transactions were all safeguarded by In August 2020, a Live Chat feature Clarien Bank Limited will focus
hard and soft security tokens. The was enabled on the Guardian Web on its aspiration to become
Clarien team also doubled down on its Portal, which allows customers to
the digital bank of choice in
efforts to educate customers on how communicate with agents and receive
Bermuda by continuing to
to utilise iBank in order to accelerate real time responses. Customers
visiting the offices were able to expand capabilities, products
the migration of transactions.
utilise kiosks to access the digital and services available through
Clarien Investments Limited’s clients portal; however, this access was these platforms.
were able to remotely build and limited by some of the health and
manage their investment portfolios safety measures. At Guardian Group
through the iPortfolio and iInvest Fatum, the MiSalu app allowed health Similarly, Guardian Group will
platforms. iPortfolio is a personal insurance customers to submit their focus on streamlining and
financial portal that gives clients invoices online and receive payment extending the capabilities of
the freedom to fully manage their directly to their bank accounts. Its its digital portals across its
investment portfolio from their Pension Portal enabled employees subsidiaries and territories.
desktop, tablet or mobile device. to view their current pensions and
Customers can also customise content relevant documents online, while
employers were able to review their
plans and submit changes.
AC C EL ER ATE 120
MD&A
Our Business
Enablers CONTINUED
PEOPLE, FACILITIES
& SERVICES
People and facilities were two of the most impacted variables this year.
The onset of the pandemic, and mandates from governing bodies such as the World
Health Organisation and local authorities in the Group’s operating territories required
the Group to reimagine quite a number of its processes, and implement several
measures to maintain health and safety of the organisation’s staff, customers and
other stakeholders.
To this end, COVID-19 Taskforces were established to manage the organisation’s response to the pandemic. These
taskforces were responsible for meeting regularly with stakeholders to ensure and optimise business continuity,
while protecting the health and safety of customers and employees.
KEEPING OUR
f
FACILITIES SAFE
Entry protocols right across the

enterprise were changed, with
mandatory mask-wearing being
enforced to prevent the local spread
of the virus, in addition to mandatory
temperature checks. In instances
where exposure is identified, the
organisation follows strict sanitisation
protocols for physical facilities,
and around-the-clock cleaning is
conducted for all high-traffic areas and
shared spaces.
undertaken in all physical facilities for across two separate locations. These
Physical distancing is observed in all the Group – including NCBJ, Clarien have since been relocated to The
instances, and education is ongoing and Guardian. Atrium in Kingston – at the Group’s
for both staff and customers to ensure headquarters. With the transition of
that everyone participates in the efforts This year also saw the successful most of CLC’s offerings to a digital
to curb the spread of the virus. To rationalisation of physical space within space, the space requirements have
support these efforts in the Group’s the organisation, which resulted significantly diminished; therefore, the
physical locations, employees have in increased efficiencies and cost- organisation was able to re-purpose
also been provided with masks and savings. Previously, the Corporate the expansive space that it previously
gloves, and plexi-glass screens have Learning Campus (CLC) and Group occupied.
been installed in some high-traffic Human Resources and Facilities
locations. These measures have been Division (GHRFD) in Jamaica existed

CONTINUED
SAFEGUARDING BRANCH DIGITISATION OF HR

BUSINESS CONTINUITY MODERNISATION AND PROCESSES
EXPANSION OF BANK
ON THE GO FACILITIES
IN JAMAICA
These efforts to protect persons The Human Resources arm of
using the organisation’s physical the organisation also benefitted
facilities have been complemented by tremendously from the digitisation
ongoing customer and staff education To support the business’ ongoing of some key processes. Most
about COVID-19 safety measures, transaction migration efforts, the noteworthy among these for NCBJ
transaction migration, and remote Facilities team has executed a and its subsidiaries were:
work. To date, a majority of employees number of initiatives in conjunction
have fully transitioned to remote with the Digital Channels and Group
working arrangements, while efforts Information Technology teams. These f Consolidation of electronic
are sustained to ensure maximum have included: security infrastructure to provide
reduction of exposure for customer- a central platform for monitoring
facing employees, and those whose f Deployment of over 30 new ABMs and investigating electronic fraud,
job functions require them to work across Jamaica, and creation thereby reducing the time taken
from shared physical spaces. of a dozen new Bank on the Go to investigate disputes
facilities islandwide
To support these efforts, GHRFD, f Digitisation of the manual
in collaboration with the technology f Modernisation of NCBJ’s employee filing system
and digitisation units, ensured that Christiana, Washington Boulevard (containing over 2,000 employee
employees have been provided with and Lucea branches in Jamaica. files) removed the need for
the necessary tools for remote work – physical files – thereby freeing
including laptops, VPN connections, valuable floor space which was
and back-up internet connections. repurposed as the CLC’s digital
learning labs.
AC C EL ER ATE 122
MD&A
Our Business
Enablers CONTINUED
One of the organisation’s key its regional partners. This sought to

training programmes - The Institute drive mindset change and leadership
of Leadership and Organisational development.
Development (ILOD) Leadership and
Management Development programme Clarien is also committed to
- has again been accredited by the increasing the number of development
IMPROVED PEOPLE University Council of Jamaica. Since opportunities available to its people,
PROCESSES AND CLC has already been accredited with significant training, enhanced
TALENT MANAGEMENT as a corporate university, signature performance management and
programmes administered under the recognition programmes for staff.
ILOD umbrella are accredited as Post- Other top priorities for Clarien include
Graduate Diplomas. enhancing its diversity, equity and
inclusion efforts.
While the onset of the COVID-19 Focus was placed on enhancing
pandemic brought face-to-face leadership by equipping employees Right across the enterprise, efforts
learning to an abrupt halt, courses targeted as successors with critical are ongoing to maintain open lines of
were quickly moved into the virtual competencies to drive business communication between employees
space to ensure that the organisation’s growth. In 2020, the organisation and the organisation. These efforts are
learning objectives were not disrupted. introduced the Modern Leader facilitated in virtual town hall meetings,
This has allowed for greater flexibility programme, developed by the regular email updates, and around-
and convenience for employees – as Arbinger Institute and facilitated by the-clock support for remote workers.
they are able to access courses and
resources offered by CLC remotely.

CONTINUED
The drive to improve talent operations across the Group and its of several programmes, as well
management through the overhaul of subsidiaries is ongoing, and several as periodic checks and balances.
the employee on-boarding experience areas have started to undergo Through this initiative, the organisation
continued throughout FY20. Through streamlining for efficiency. Additionally, identified a number of health practices
this initiative, a step-by-step guide for the Group has identified several on which to focus, including:
new recruits was introduced, as well areas in which the organisation could
as a new managers’ toolkit to provide benefit from economies of scale, and f Employee involvement
abbreviated information on topical are already achieving significant cost
Human Resource matters. Similarly, savings. f Employee innovation
a peer coach kit was provided for
persons assigned as mentors to f Being open and trusting
support the on-boarding process.
f Being customer-focussed
f Demonstrating consultative
leadership
f Demonstrating supportive
DIAGNOSING leadership.
AND TREATING
ORGANISATIONAL
CREATING HEALTH
EFFICIENCIES AND
SAVINGS IN THE
SUPPLY CHAIN
Organisational health had been
identified as a key driver of the Group’s
strategic aspirations. In partnership
Another important focus for the Group with a leading global consulting firm,
was strengthening cost discipline the NCB Group embarked on efforts
and efficiency across the enterprise. to diagnose and treat organisational
To achieve this, examination of the health through the implementation
AC C EL ER ATE 124
MD&A
Risk Management
and Governance
Before the global outbreak of the COVID-19 pandemic,

financial organisations like the NCB Financial Group
concentrated on reducing complications and expenses
that arose from increasing regulations and emerging risks.
This was done using a robust framework of policies,
processes and people to execute risk and compliance
functions. However, the COVID-19 pandemic challenged the
established infrastructure, processes and protocols of the
organisation’s risk management norms due to its fast-evolving
and unpredictable nature.

CONTINUED
managing potential exposures or

Pivoting quickly to accommodate threats within the scope of their
the new stipulations implemented assigned responsibilities.
for the health and safety of frontline
employees, while ensuring through- f Risk and compliance - existing
at the subsidiary and Group
the-line integration of the personal
levels, these functions provide
and business environment to RISK MANAGEMENT
oversight for the effective
facilitate remote working was PRINCIPLES operation of risk management
a true test of the agility of the by the business lines. Risk and
organisation’s Risk Management and compliance are also responsible
Governance framework. This was for developing policies, and
Risk management is now, more monitoring compliance with them.
also compounded by the need to
comply with ever-growing customer than ever, an organisation-wide
responsibility – everyone has a part f Internal audit - provides
and regulatory demands emerging independent assurance and
to play. The Group employs the Three
from the pandemic, along with Lines of Defence Enterprise Risk monitoring of the efficiency of the
the organisation’s ongoing digital Management Framework to manage risk management performance
potential risks: executed by the business
transformation initiatives.
lines, as well as the risk and
f Business lines - the compliance functions executed
responsibility for identifying and across the organisation.
managing inherent risks first lies
within each business unit, where
employees are accountable
for identifying, assessing and
AC C EL ER ATE 126
MD&A
Risk Management
and Governance CONTINUED
GOVERNANCE FRAMEWORK
THE RISK TYPE OF SUPPORT PROVIDED BY THE MANAGEMENT

GOVERNANCE RISK COMMITTEES
FRAMEWORK
Capital The relevant committees are responsible for

Adequacy setting and monitoring overall capital management
The Group’s risk governance
principles in line with the Group’s enterprise-wide
framework is intended to provide
risk framework and appetite.
a comprehensive set of controls
and ongoing management of the
major risks assumed in the Group’s
business activities. This function Legal and The relevant committees are responsible for
covers the Corporate Governance Regulatory monitoring the status of legal and regulatory
and Nomination Committee of the Risks compliance within the Group.
board, legal, risk management and
compliance. The NCBFG Board
of Directors assumes ultimate
Operational The relevant committees are accountable for the
responsibility for oversight of the
risks provision of oversight to the strategies, policies
Group’s risk-taking activities, and
and procedures in place to manage such risks as
delegates that responsibility to the
information technology and information security
Group Risk Committee and the
risk exposure, fraud risks and others. Their
Group’s Audit Committee. These
responsibilities also include managing an effective
committees are supported, where risk organisation structure, and implementing
necessary, by the Board committees, effective governance processes.
Board Risk committees, and the Audit
committees of the subsidiaries.
There are also a number of Strategic The committees with oversight for strategic
management committees across the Risk risk are responsible for the execution of the
group which support risk management Group’s 2024 strategy, and are held accountable
oversight with respect to strategic risk, for the effective and timely execution of
operational risk, IT security and fraud activities, delivery of the expected benefits and
risks, capital adequacy, market and performance monitoring. These committees
liquidity risk and legal and regulatory oversee the assessment of feasibility,
achievement of business objectives, and
risk.
mitigation of risks.
Market and The relevant committees monitor and ensure the

Liquidity effective and efficient management of market risks
Risk relating to the mix of assets and liabilities, as well
as the holding and trading of foreign currencies and
designated investment securities.

CONTINUED
f Extension of relief initiatives, the inability to unwind a position in the

including customer payment face of inadequate market activities, or
deferrals, principal moratoriums, unavailable market prices.
debt restructuring and
consolidation to various consumer The Group’s Enterprise Risk
and commercial segments Management Policy requires
SIGNIFICANT RISKS that liquidity is managed within
f Ongoing close monitoring established policy guidelines, limits
of borrower performance to and/or benchmarks. One of the
identify any deterioration in principal liquidity strategies pursued
circumstances, and determine by the Group is the maintenance
other strategies for managing of diverse and stable sources of
CREDIT RISK credit portfolio quality funding. Accordingly, the Group’s
liquidity funding providers include
Credit risk for the organisation includes f The adjustment of Expected NCBJ’s diversified retail customers
the possibility of a customer/borrower Credit Losses (ECLs)1 to recognise and corporate customers, as well as
defaulting on promised payments the deteriorating economic repurchase agreements and long-
(e.g. principal, interest, margin, etc.), outlook, and weaker probabilities term secured funding sources, which
or that a trading partner may fail to of default. include Diversified Payment Rights
fulfil its obligations on a transaction securitisation. The credit rating of the
or portfolio of transactions, thereby Notably, the assessment which was Group is also continuously monitored
forcing NCBFG to terminate the trade, instituted in response to the COVID-19 to ensure that the organisation is
or replace the counter-party at a loss. pandemic could delay the recognition positioned favourably to access credit
Due to the resultant economic impact of net charge-offs, delinquencies, at a good price.
of the pandemic on a number of the and non-accrual status for those
sectors to which the organisation customers who would have otherwise The Group Risk Committee also
lends, credit risk is in significant focus. moved into past due or non-accrual closely monitors the Group’s liquidity
As a regional group, oversight for status. These initiatives remain under risk positions, and review all the
risk must extend to the economic constant review, as the various relevant information including:
environment of all the territories in governance teams such as Risk
which we operate. The economic Management, Collections and Finance f Factors affecting liquidity in the
impact of the pandemic has certainly continue to monitor the potential range respective domestic markets
affected the countries in which the of future economic outcomes.
Group operates. f Key liquidity metrics, trends and
comparisons with established
The heightened threat to business limits and benchmarks
profitability has also been brought
into sharp focus, due to the increased LIQUIDITY RISK f Liquidity scenarios and strategies
exposure of the organisation to to manage the various scenarios.
the aftershocks of the pandemic’s Defined as the potential for loss in the
economic impact on a number of event that the Group is unable to meet
sectors to which it lends. A customer- its payment obligations when they fall
centered approach was taken to help due, the organisation has taken steps
manage credit risk, and included: to safeguard itself against liquidity
risk, and ensure its ability to honour its
f Discussions with large corporate obligations and liabilities to depositors
and commercial customers and suppliers, while taking advantage
to understand the impact of of any profitable opportunities that
COVID-19 on their businesses, may arise. Given the current economic
and their unique economic climate, the Group is also exposed to
challenges Market Liquidity risk, which refers to
1: ECL is an accounting approach introduced under IFRS 9 - ‘Financial Instruments’

for the recognition of projected credit impairment losses. The methodology involves
a forward-looking assessment of macro-economic conditions with a computation
using the probability of default, loss given default and exposure at default.
AC C EL ER ATE 128
MD&A
Risk Management
and Governance CONTINUED
f Monitoring the environment and potential exposure of employees to the

disseminating the outputs from virus in the shared working spaces of
MARKET RISK Jamaica’s Ministry of Health, the business, it has also amplified the
and the National Disaster operational risks.
The Group addresses its exposure to Preparedness Committee
market risk, which is the possibility To manage this, a Remote Work
that movements in certain market f Ensuring the safety of the Committee was established to review
variables such as interest rates, organisation’s key stakeholders and manage the process, refine the
foreign exchange rates, equity prices, (employees and customers), and remote work framework, define norms
market liquidity and credit spreads addressing their concerns and practices, tools, resources and
may adversely affect its income and/ standards. The increased potential for
or the value of its portfolios. The f Ensuring the sustenance of key cybersecurity risks was also examined
infrastructure designed to manage supply chains by the first and second lines of
market risk by the Group incorporates defence.
the definition, approval and monitoring f Protecting the organisation’s
of limits, as well as the performance infrastructure Cybersecurity risks arise from the
of stress testing, and qualitative risk increased reliance on multiple
assessments. f Safeguarding the sustainability of information technology systems and
the business networks. Our risk management
framework examines and frequently
f Assessing the impact of the tests how information is processed,
pandemic on the Caribbean and accessed, transmitted and stored in
OPERATIONAL RISK each country’s economy the wide array of business processes
and activities. The actions taken to
The escalation of the COVID-19 f Developing an appropriate action reduce these risks are continually
outbreak to a pandemic by the plan for each entity. updated to ensure world-class defence
World Health Organisation triggered mechanisms to proactively respond
the activation of the organisation’s Following temporary closure of to any potential exposures. in addition
business continuity programme. This branches and corporate offices to having a robust cybersecurity
continues to be led for NCBJ and its during the pandemic, the business policy, we also have protocols in place
subsidiaries by a COVID-19 Taskforce, was mandated to alter the way we to assess, prevent and effectively
a working committee established to facilitated customer interactions, and respond to certain cyber events. Given
oversee the effective execution of the how employees functioned. While the importance of cybersecurity, the
activities recommended by the Group’s the widespread adoption of remote Group also maintains cybersecurity
Crisis Management Committee. This working has significantly reduced insurance coverage.
Task Force is charged with:

CONTINUED
frequency and severity of claims. The risk manifests itself through failure
potential for loss is inherent due to to comply with legal requirements,
the predictability that can arise from including ineffectiveness in the
INSURANCE RISK assuming long-term policy liabilities or management of litigation proceedings.
from the uncertainty of future events. As part of one of the most closely-
With significant changes and regulated industries, the Group is
streamlining undertaken in this arm GENERAL INSURANCE - The expected to meet and maintain high
of the business during the year, there business operates general insurance standards in all business dealings and
was increased potential for insurance subsidiaries which underwrite the transactions. Failure to adequately
risk. This has been coupled with any following general insurance business address conflicts of interest, regulatory
potential fall-out from the business – Motor, Property, Pecuniary Loss, requirements, financial crime
being able to maintain customer Liability and Accident. One of the regulations, privacy laws, information
policies even with the likelihood of principal risks associated with general security policies, ethical practices
decreased policy payments and insurance is pricing risk. Inadequate and other legal requirements not only
COVID-19 relief initiatives being offered pricing of insurance contracts could pose a risk of censure or penalty after
to customers. result in claims honoured exceeding litigation, but also reputational risk.
premium income. Over-pricing of Business units are the first lines of
BANCASSURANCE - The the business could also diminish the defence and are responsible for
organisation operates an integrated Group’s competitiveness, thereby managing day-to-day regulatory and
bancassurance model, which provides destroying value. legal risk, while the Group’s Legal
wealth and protection insurance and Compliance functions act as the
products, as well as issuing of This segment also faces the risk second line of defence, providing
contracts that transfer insurance of inappropriate reserving around advice, monitoring and oversight.
risk, financial risk or both, primarily over-adequacy of the reserving level,
through bancassurance arrangements. which would negatively affect the
Insurance contracts transfer material Group’s strength, or the inadequacy
insurance risk and may also transfer of the reserving level, which would
financial risk. As a general guideline, necessitate a large injection of capital REPUTATIONAL RISK
the organisation defines material when the inadequacy is discovered.
insurance risk as the possibility Reputational risk is the potential that
of having to pay benefits on the negative publicity, whether true or not,
occurrence of insured events which regarding an institution’s business
are at least ten percent more than the practices, actions or inactions, may
benefits payable if the insured event LEGAL AND REGULATORY cause a decline in the institution’s
did not occur. RISK value, liquidity, or customer base.
All risks may have an impact on
LIFE INSURANCE - The Group is The Group is also subject to regulatory reputation, which in turn may
also exposed to life insurance risk, risk and legal risk, which could have negatively affect the brand, earnings,
where there is a possibility of having an adverse impact on its business. and capital. Therefore, credit, market,
to pay benefits on the occurrence Regulatory risk arises from a failure operational, insurance, regulatory
of an insured event. The Group has to comply with regulatory and and legal risks must be managed
to assess the risks undertaken in comparable requirements. Legal effectively in order to safeguard the
issuing insurance contracts, such as reputation of the organisation.
AC C EL ER ATE 130
MD&A
A CC E LE R AT E
Strategic
Outlook
At the beginning of the 2020 financial year, the Group

launched its new aspiration to become a world-class
Caribbean financial ecosystem by FY2024.
NCBFG is pursuing a bold set of goals and aspirations.

Determined to stay on track, the organisation embarked
on a transformative journey to meet the milestones set out
for the period, by converting these goals and aspirations
into the business-specific actions and results, the Group
remains agile in pursuing and executing them.

CONTINUED
FOUR THRUSTS OF OUR 2024 ASPIRATION
We will deliver We will become the We will be the We will operate a world-
world class growth, employer of choice, with preferred and most class technology and
efficiency, return on strong organisational trusted financial analytics platform that
assets and equity health, and a place where partner for customers enables fast, simple,
each employee is proud to across segments intuitive, secure, stable,
be a part of the team and and delightful digital-first
committed to our success as experiences for customers
an organisation and employees
01 02 03 04
D
EL
IN S PI RE D PEO
IG
HTED CUST
STRON
DIGITAL TO THE CORE

ME
O
RS
PL
GF
EA
ND
4 100
INA
CU
LTU
RE
NC
75
AL GEAR
I
PE 50
RF
ORM
ANCE 100% 25
BATTERY BRAKE POWER
AC C EL ER ATE 132
MD&A
Strategic
Outlook CONTINUED
SOME OF OUR WINS FOR THE 2020 FINANCIAL YEAR
The streamlining of Increased sales Roll-out of Fast Cash

our Jamaican force effectiveness and Pay Advance pre-
insurance business through improved approved loan facilities,
through the transfer of the productivity in consumer which allow approved customers
insurance and annuities loans, insurance and to access loans within minutes,
portfolio of NCBIC to GLL. business deposits. We also by accepting an offer online.
equipped our insurance
sales agent field force
with AI-powered digital
tools, which enable agents
to perform data-driven
assessments of customer
needs, and recommend
>50%
holistic insurance and asset
management solutions.
Staff members across

the Group shifted to a
remote-work model,
Continued expansion while maintaining our robust
of our asset cyber-security protocols.
management business
to better serve wealth and
asset mangement customers
Launch of iInvest
––Bermuda’s first and only SIGNIFICANT INVESTMENT
robo-advisory wealth solution. IN CAPABILITY BUILDING
65 managers
participated in the
Ability to Execute
(A2E) Business
Fundamentals (mini-
MBA) programme.
Acceleration of
migration of services Launch of Quick Save
to digital channels
to enable customers to
conduct more of their
deposit product
which enables customers to
open a deposit account with
450 leaders enrolled in
The Arbinger Institute’s
globally renowned
transactions from the safety NCBJ with just a taxpayer Outward Mindset
and convenience of their registration number (TRN) and Leadership Training
home or office. government-issued ID. programme.

CONTINUED
The success indicators of our bold goal to

NCB Financial Group recognises the
become a world-class Caribbean financial crucial role that it plays in the lives
of our employees and customers,
ecosystem by 2024 include delivering world- and the responsibility it has to help
class growth, efficiency and returns; fostering stabilise and stimulate the economies
in the markets served, and mitigate
a healthy, commited team of people; becoming the negative impacts of the crisis.
This understanding is coupled with
the first-choice financial solutions provider for an appreciation for the fact that
customers in the region; and underlining all of the organisation is operating in
entirely different norms from the pre-
these with a robust technology and analytics COVID-19 environment – and it must:
platform which enables the organisation to
Deepen the relationship with
deliver outstanding customer experiences. customers significantly, with
the goal of understanding their
needs, and using that as the
starting point for product and
Notwithstanding the challenges for the organisation, the emergent service innovation;
brought on by the global pandemic, lessons from the COVID-19 pandemic
Deliver safe, dependable, easy-
we remain committed to this unearthed new opportunities and
to-use digital-first, customer-
aspiration. Supported by our have helped to re-shape the business
oriented financial solutions, driven
strategic consulting partner, we model, requiring an adjustment to the
by leading digital analytics and
have established a robust execution organisation’s mindset.
technology;
framework that enabled us to develop
a strong pipeline of initiatives, a Consequently, the organisation began Facilitate delightful and intelligent
monitoring mechanism for milestones the process of redefining its purpose, customer experiences powered
and value, and a methodology for vision, mission and core values to by data to differentiate itself in a
pivoting quickly once assumptions ensure that these are aligned with the more competitive landscape;
change. The rigour and inclusiveness new business aspirations and ways of
of the programme has elevated the working. Collectively referred to as the Lead the transformation of the
capabilities, capacity and commitment new ‘NCB Mindset’, these elements regional financial services sector
of our team members to achieve our of the organisation’s corporate identity by example – by becoming a
aspiration. have been redesigned to reflect the world-class Caribbean financial
organisation’s renewed purpose— services ecosystem.
While most of this financial year
presented several unprecedented Empowering people As an organisation, we will not rest
challenges, it also elicited high
until we are world-class in terms
levels of innovation and agility, and
created an incomparable openness Unlocking dreams of our customer experiences, our
culture, technology systems, and
to change for both the organisation,
financial performance. This is what
its employees and its customers.
These changes have not only forced Building communities our stakeholders deserve. For the
upcoming financial year, customers
the re-imagination of the industry,
—which represents a renewed focus can expect an enhanced focus on
products and offerings in significantly
on customer-obsession, performance our customer experience and digital
less time, but it has also made
goals and people development. The transformation agendas.
transformation a necessity instead
of a mere choice. While a major new vision, mission and core values
transformation was already in progress will be officially launched in the second
quarter of the 2021 financial year.
AC C EL ER ATE 134
MD&A
Corporate Social
Responsibility
The NCB Financial Group remains committed to serving its stakeholders

and is steadfast in building the communities in which we live and
work. This permeates everything we do and continues to drive our
commitment to creating value through innovation, continuous learning
and purpose driven execution. As a Group, we continuously engage
in activities that will balance the long-term viability of our business
with social and environmental accountability, while recognising our
role as a corporate leader in the region.
Nichole Brackett Walters (2nd right), Group Marketing and Communications Manager at NCBJ gets a hug from
Jeanette Rose-Bryan (centre), Manager of the Pringle Children’s Home when she presented a donation of $1M to the
facility, as part of N.C.B. Foundation’s 2019 Grant a Wish initiative.

CONTINUED
NCB Financial Group supports an security. For most employees, where participants who successfully
inclusive workplace reflective of information security and financial complete the programme qualify for
the wide range of socioeconomic, crimes compliance is administered post-graduate diplomas.
religious and ethnic backgrounds through online, while for the senior
of all our stakeholders, including team and Board, the training is done Leadership Development
customers and the public at large. by invited trainers based on themes Special focus was placed on
Our focus is on achieving the right considered relevant at the time enhancing the leadership capabilities
mix among economic growth, digital and based on their functions. The of a wide spectrum of team members
transformation and social well-being. Corporate Governance Statement including supervisors, managers,
The Group’s CSR activities seek in this Annual Report (page 38), and senior executives. Our signature
therefore to ensure: outlines the courses provided to the leadership programmes offered
Board during the year. through the Institute of Leadership
► our mission is realised; and Organisational Development
► our core values are reinforced; (ILOD), were reaccredited by the
► the group will enjoy long- University Council of Jamaica. In
term success while providing
FOCUS ON addition, across the NCB Financial
appropriate benefits for EMPLOYEES Group, over 450 leaders were enrolled
our key stakeholders: our in The Arbinger Institute’s globally
employees, customers, This period of unprecedented renown Outward Mindset Leadership
suppliers, shareholders, and our change has left no life untouched. Training programme and 65 managers
communities; We successfully transitioned the participated in Ability to Execute (A2E)
► we perform competitively and majority of our staff members to a Business Fundamentals (mini-MBA)
profitably through responsible remote working model to protect programme.
business practices; and stakeholders, while maintaining
► we remain committed to our productivity and cyber security Talent Development
the principles of sustainable protocols. At the end of the 2020 In the 2020 financial year, we
development, which emphasise financial year, 62% of our workforce continued our drive to improve talent
the integration of economic, were working remotely. management through the overhaul of
social, environmental and ethical the employee on-boarding, which is
goals in our business activities. For employees who were unable expected to enhance the employee
to work remotely due to the nature experience. Through this initiative, we
Our Corporate Social Responsibility of their roles, protocols were implemented a step by step guide for
(“CSR”) policy covers four main implemented to create a safe working new recruits, introduced a leadership
areas: ethics, employment practices, environment, including ongoing onboarding session, a new manager’s
stakeholder engagement and sanitisation of work surfaces, toolkit to provide abbreviated
community outreach; our commitment implementation of sanitisation information on topical HR matters as
to delivering on the mandates of each dispensers and no-touch bathrooms well as a “Peer Coach” Kit for mentors
is unwavering. and enforcement of physical assigned to provide on-boarding
distancing standards. In addition, support for new employees.
FOCUS ON customer-facing employees were
provided with face shields, masks and
ETHICS
latex gloves; plexi glass was installed FOCUS ON OUR
in some locations. Employees were
CUSTOMERS
Our performance is underpinned kept abreast of important updates and
by our strong ethical standards and educated on how to keep safe during
practices and they continue to be a the pandemic. In keeping with the key pillar of our
critical part of business operations. aspiration to delight our customers,
These standards are supported by our Learning and Development we are focussed on becoming the
policies and procedures, employment The onset of the COVID-19 pandemic preferred and most trusted financial
practices and disciplinary procedures, brought face-to-face learning to an partner for customers across all
such as the Code of Business abrupt halt. However, with learning and segments. A key part of our focus
Conduct for employees. development being a critical enabler for this year was on improving
of our strategic objectives, we quickly the experience of our customers
Employees are trained in ethics pivoted and transitioned our learning with emphasis placed on deeply
and financial crimes compliance at and development programmes online, understanding the root causes of our
onboarding and refresher programmes which in many instances resulted in primary customer pain points, in order
are provided to keep employees up- greater flexibility and convenience for to determine the most convenient
to-date. Additionally, employees are employees. In Jamaica, our Corporate ways for customers to be served. As
required to undergo ongoing training Learning Campus offers a number a Group, we continue to enhance
on customer service and information of accredited signature programmes our complaints management system,
AC C EL ER ATE 136
MD&A
Corporate Social
Responsibility CONTINUED
Laurent Hamil (right), Head of the Haven Nursing Home could not be more grateful to unwrap a $1M donation from the N.C.B.
Foundation. Haven Nursing Home received top votes in its category in N.C.B. Foundation’s 2019 Grant a Wish initiative. With Hamil
is Dave Wilson, branch manager of NCBJ’s Matilda’s Corner Branch. The N.C.B. Foundation also helped bring cheer to the home
with a Christmas tree and tokens.
expand digital channel options and Digitising the way to renew home and motor vehicle
functionalities, and strengthen our core we serve our customers polices online and were provided
IT infrastructure, in order to deliver a The onset of the COVID-19 pandemic with a range of online options for
customer experience that is simple, led governments to implement varying making insurance premium payments
secure, reliable and delightful. safety measures including but not online. In Bermuda, Clarien launched
limited to curfews, capacity restrictions iInvest, the country’s first and only
Enhancing and physical distancing protocols in robo-advisory wealth solution, which
Customer Awareness order to reduce the risk of infection facilitated remote access to wealth
Customer education is a priority and among their populations. As a result, advisory services.
we remain committed to keeping business as usual was disrupted and
customers abreast of changes in our we had to accelerate the migration of
operations and educated about how customers across the Group to digital
they can effectively use our products channels so they could continue to
FOCUS ON OUR
and services as well as to improve manage their financial affairs. COMMUNITIES
financial literacy.
NCBJ was able to facilitate the NCB Financial Group has been
We do this by improving employee majority of day-to-day transactions committed to improving the lives of
education, driving increased and applications for new deposit, loan, people and building the communities
understanding of our products and credit card and investment accounts we serve. With the impact of the
services so employees are able online. Through partnerships with COVID-19 pandemic on the world
to consistently provide accurate local telecommunication providers, and in particular, the territories in
information to customers thus enabling customers were able to access these which we operate, we have been
a consistent service experience for online services via their mobile phones assiduously working to support our
customers regardless of where they without incurring data charges. communities and have invested
are served. heavily to build and develop them
Guardian Group customers were able given the increased need. We are

CONTINUED
thankful for the loyalty and patronage for charities and their fundraising N.C.B. Foundation Gratitude Fund
of our customers, which enabled us to events, helping to improve the As part of our celebration of our
be able to support these philanthropic lives of Bermudians and ultimately 16th anniversary and a token of
efforts. We are also grateful to our strengthening our community. appreciation to the University of
shareholders for their support and West Indies for conferring honorary
to our employees for their continued doctorate degrees on Hon. Patrick
commitment and team spirit. Hylton, OJ, CD (President and Group
Some of the key CEO – NCB Financial Group) and
A myriad of philanthropic initiatives Thalia Lyn, OD, JP (Director – NCB
were undertaken by the charitable projects undertaken Financial Group and Chair - N.C.B.
foundations across the NCB Financial Foundation); the ‘N.C.B. Foundation
Group valued at over $294M. during the financial Gratitude Fund’ was announced on
November 2, 2019 at the University’s
N.C.B. Foundation year by the graduation ceremony. The donation
serves as the leading philanthropic arm of $25M to this fund assisted over
of NCB. It is funded by a contribution foundations were: 220 2019 graduates with clearing their
of 1% of the prior year’s profit for the outstanding tuition and fees.
NCB Financial Group. For the 2020
fiscal year, a total of $380M million NCB National CSEC Bursary
was committed to support initiatives
N.C.B. Programme
aligned with the Foundation’s three FOUNDATION Since 2003, the N.C.B. Foundation
main areas of focus: has been supporting students at the
1. Education Scholarship & Grant Programme secondary level through sponsorship
2. Community Development & Sports For the Annual Scholarships of the Caribbean Secondary
3. Youth Leadership & and Grants programme $60M Examination Council (CSEC)
Entrepreneurship. in scholarships and grants were examinations for select subjects for
awarded, impacting over 500 students qualified Jamaican students in both
Education continues to be our primary island wide. This year, beneficiaries public and private institutions across
area of focus, with over 60% of included Wards of the State and the island. To date, the Foundation
contributions since inception allocated teenaged mothers via support to the has awarded $164M and supported
to this area. Hear the Children’s Cry and EVE for 106,000 students in attaining the
Life charitable organisations. minimum subject requirements for
Guardian Group admission into tertiary level institutions
does philanthropic activities directly Level-up Grants or to advance in the world of work.
and also through the Guardian Group For this year, the traditional scholarship
Foundation, which serves as the programme, was supplemented by COVID-19 Relief
philanthropic arm of Guardian Life. the “Level-up Grant programme”, To support the fight against
The pillars supported are Health which was introduced in response COVID-19, to date, N.C.B. Foundation
and Wellness, Sport and Youth to the increase in unemployment donated nearly $50M to support
Development and Social/National precipitated by the pandemic. A total the Government of Jamaica Private
Citizenship. Through these entities of $25M in grants was provided to Sector Organisation of Jamaica
we continue to expand our social unemployed persons to pursue short Ventilator Initiative and to procure
community outreach programmes online courses that would enable them equipment for the University Hospital
throughout the English and Dutch to upskill and gain new employment of the West Indies Intensive Care Unit.
Caribbean, with a primary objective to during or post the pandemic. The Foundation also supported the
turn our efforts into tangible benefits Ministry of Labour and Social Security,
for our societies. N.C.B. Foundation partnered with Island Grill, Food for the Poor and
Internet Income Jamaica, iCreate other entities to provide food and
Clarien Foundation Limited and Northern Caribbean supplies for persons residing in
serves as the philanthropic arm University (NCU) to offer short online quarantined areas.
of Clarien. Through the Clarien courses in areas such as hotel
Foundation and Clarien Trust Limited, operations management, social media Grant-A-Wish Programme
we have facilitated a structured management, transcription, virtual This financial year’s Grant-A-Wish
charitable giving programme that assistant and remote call centre programme helped Jamaicans fulfil
aligns with our stakeholders’ unique support, digital marketing, graphic wishes and express gratitude to
desires and values. Clarien has design, grant writing, business people or organisations that have
maintained its long-standing support communications, crisis/trauma/ impacted their lives, their communities
of youth development and education- grief counselling and small business and the nation. A total of $12M
based charities in Bermuda. The management. was donated to support Children’s
foundation’s main objective is to Homes, Golden Age Homes and
provide financial and in-kind support Disability Organisations across
Jamaica.
AC C EL ER ATE 138
MD&A
Corporate Social
Several students at the Excelsior Primary School in Kingston, Jamaica pose with the new water tanks
donated to the school by the Guardian Group Foundation. At left is Annette Atkinson, Guardian Life, Senior
Manager, Corporate Affairs & Communications.
runners. This satisfied participants’ partners, sponsors, the media and

GUARDIAN personal desire to give back to the most importantly the participants for
GROUP less fortunate, and Guardian Group’s their support.
objective of making a meaningful
contribution to children’s charities. The Cancer Awareness
► SHINE 2019 ►
event also raised public awareness
In Trinidad and Tobago, SHINE 2019
and engagement in a family and fun-
Month Activities
(Securing Hope for those in Need)
based Health and Wellness event,
was one of the major philanthropic Breast Cancer
which is central to Guardian Group’s
activities undertaken. Guardian Group Awareness Month Activities
Corporate Social Responsibility. To
Trinidad and Tobago celebrated the In October 2019, the Guardian Group
commemorate its 5th anniversary and
5th anniversary of the SHINE 5k Jamaica Foundation partnered with
to increase the impact this race has
and 10K Charity Walk and Run on the Jamaica Cancer Society and
on both the participants as well as
Saturday 30th November, 2019 at Reach to Recovery to host ‘Pink
the recipient charities, 100% of race
the Nelson Mandela Park, St. Clair. Day’ at all Guardian Life branches
proceeds, totalling over TT500,000
This charity event is Guardian Group’s island-wide. The objective was to
was distributed to 50 children’s homes
flagship charity fundraiser in Trinidad increase awareness about breast
across Trinidad and Tobago. The
and Tobago and attracted over 5,000 cancer among staff and the public.
money received by these charities
participants. The dual distances within Activities included encouraging staff
makes a significant difference in the
one event sought to engage both the members to wear pink, the distribution
lives of thousands of children and we
serious athletes and leisure walkers/ of cupcakes to staff and clients
are thankful to all our staff members,

CONTINUED
and addresses by Ms. Yulit Gordon,

Executive Director of the Jamaica
Cancer Society and Dr Hugh Anthony
Roberts, Consultant General Surgeon
at the University Hospital of the West
Indies.
► NSSEC
In October 2019, Guardian Group,
for the second year, sponsored
the National Secondary School
Entrepreneurship Competition
(NSSEC) which boasted a participation
of 110 teams nationwide. The NSSEC
programme, a business education
simulation platform, uses the Market
Place Live software, an online
environment for business simulation.
The competition specifically targets
the youth of Trinidad and Tobago
through the secondary school system.
The competition was held over a six-
week period where students from The Guardian Group Foundation gave a much-needed injection to the Jamaican health sector
participating schools were challenged with the donation of a ventilator valued at J$3.9M to the Victoria Jubilee Neo-Natal Ward, and by
to manufacture and sell a product in extension the Kingston Public Hospital. Eric Hosin, President, Guardian Life appears in this photo.
a virtual environment that has all the
same challenges as the real-world
marketplace.
► ShoeBox 2019
The Shoebox Project continues to
be one of the Group’s major staff
volunteer programmes across all
our territories. For 2019, Guardian
Group partnered with the NCB Global
Finance family to help bring the
joy of the Christmas season to as
many children as possible within the
territories we operate. Shoebox is
Guardian Group’s toy collection drive
for the benefit of the less fortunate
children in various communities.
Shoebox is one of our core CSR
initiatives to engage staff in an activity
that epitomises one of the Group’s
core values, namely, serving people.
The Shoebox project occurs during the
months of November and December
annually in keeping with the sentiment
of giving during the Christmas Desiree Tulloch-Reid (left), President of the Lupus Foundation of Jamaica, accepts a donation of
season. Since 2012, the charity $250,000 from Guardian Life’s Eli Ferguson, Branch Manager at the Trafalgar Financial Centre. The
project has received full support from donation provided by the Guardian Group Foundation is expected to provide assistance to persons
staff members who are willing to go needing support with treatment for Lupus.
above and beyond to be champions
of the cause. Friendly competition is
encouraged among staff/departments
to collect the most gifts.
AC C EL ER ATE 140
MD&A
Corporate Social
Clarien invited the general public to an Exclusive Iron Kids Card Signing and Photo Session with world triathlon champion
Flora Duffy (centre) at the BTA Visitor Service Centre. Attendees received a signature Flora Duffy signing card, developed
exclusively for this session, which included a brief message from the world champion.
cooked meals for those unable to a delicious meal for individuals and
CLARIEN cook for themselves, such as the sick, families in need. Volunteers said it
FOUNDATION elderly and disabled. Since 2010, was a “humbling and eye-opening
Clarien Bank’s Holiday GiveBack experience” to give back in this way.
Clarien Cares Programme campaign has raised more than Launched in April 2020, the church
The programme allows staff the BMD$100,000 for the charity. Each feeding program has provided more
opportunity to participate in one of December, the bank encourages its than 20,000 meals to needy Bermuda
three community outreach projects clients, employees and the general residents impacted by the crisis,
that we coordinate throughout the public to celebrate the season of including those out of work. As
year. Additionally, we encourage giving by making donations in honour the need for this important service
employee involvement in charitable of Meals on Wheels. This number continues to grow, so does the need
events, allowing staff who volunteer (up to a capped amount) is proudly for volunteers in the kitchen to help
outside of normal business hours in matched by the Clarien Foundation. with food preparation and serving
support of one of our partner charities meals.
to get paid vacation time in return. In an effort to give back to those who
had been hardest hit by the COVID-19 Notwithstanding this unprecedented
13th Annual Holiday GiveBack pandemic, Clarien employees period of ongoing global uncertainty,
Campaign and Church Feeding volunteered their time in September the NCB Financial Group stands
Programme 2020 to supporting a community by its commitment to corporate
In December 2019, Clarien launched feeding program at Christ Church social responsibility in service to our
its 13th Annual Holiday GiveBack in Warwick, Bermuda. Staff from employees, customers, suppliers,
Campaign, which raised BMD$15,000 various teams at the Bank, including shareholders, and the communities
for Meals on Wheels, a not-for-profit IT, Private Banking and Internal Audit, we serve.
organisation that prepares freshly devoted their afternoon to prepping

CONTINUED
CLARIEN
PHOTO
HIGHLIGHTS
Michael De Couto, Chief Digital & Marketing Officer (far right) and other Clarien Bank team members participated in the 32nd Annual P.A.L.S.
Walk to help raise money for cancer care in Bermuda.
Over 20 Clarien Bank employees volunteered their time to doing light landscaping work at WindReach Bermuda, to help with necessary
cleanup efforts following Hurricane Humberto.
AC C EL ER ATE 142
MD&A
Corporate Social Responsibility

CONTINUED
1 2
4 5
J6 K
7
1. This NCBJ customer could not keep the surprise and delight from showing on her face when she received a free tank of fuel during NCBJ’s pop-up Moment of Gratitude in December 2019.
This initiative was part of NCBJ’s give-back efforts in the 2019 Christmas campaign – The Gratitude Project. 2. Chairman of NCB Financial Group – Michael Lee-Chin—spends some time with
a select group of Jamaican MSMEs and entrepreneurs, offering mentorship and business tips. 3. A beneficiary of the N.C.B. Foundation’s USD academic grant gets a hug from NCB Financial
Group Chairman, Michael Lee-Chin (right), while the Hon. Audley Shaw, Minister of Industry, Investment and Commerce (left), N.C.B. Foundation chairperson, Thalia Lyn (2nd left) and another
beneficiary look on. 4. Programmes Administrator at the N.C.B. Foundation, Jamilia Crooks-Brown bumps elbows with the team from the iBelieve initiative, one of their repeat beneficiaries.
5. CEO of NCBJ, Septimus ‘Bob’ Blake (left), affixes his signature to a cheque for $3M towards the restoration of the Jamaica National Children’s Home, which was razed by a fire. Along with
Thalia Lyn (2nd right) and Nadeen Matthews Blair (right), Blake presented the cheque to Marcia Forbes, chairperson of United Way of Jamaica – the organisation which spearheaded fundraising
efforts for the children’s home. 6. Ivalnie Nickie, Founder and Executive Director of the Annie Dawson Home in Jamaica, receives a $150,000 donation from Jamilia Crooks-Brown, Programmes
Administrator at the N.C.B. Foundation, and Victoria Rowell, an Emmy-nominated actress who was also in Jamaica doing fundraising for the facility. 7. Chairperson of the N.C.B. Foundation,
Thalia Lyn (centre) chats with the team from the Mico University at the signing of the MOU for the NCB Icon Lab. With her are Jamilia Crooks-Brown, Programmes Administrator at the N.C.B.
Foundation, and Nadeen Matthews Blair, CEO of the N.C.B. Foundation.

CONTINUED
8 9
10 11
12 13
14 15
8. Jahmario Simpson, a student at Denbigh High School in Jamaica, receives a brand new laptop computer from the N.C.B. Foundation. Members of Simpson’s school, family, and the NCBJ team
are also present for the handover. 9. Winston Smith (centre), Principal of the Golden Spring Primary School, gets some help from students (L-R) Minnell Nagent, Arianna Jones, Kadija Worghs
and Celina Brignhy—to unwrap the new multipurpose projector donated by the N.C.B Foundation to support the IT improvements at their school. 10. NCBJ’s Sandra Fuller (centre) assists
Andrea Hayles of Island Grill to sort lunches for health care workers at the Sir John Golden Rehabilitation Centre in Kingston, Jamaica. This was part of an N.C.B. Foundation initiative geared at
supporting the team on Mother’s Day. 11. Deaf Can!, the first company to be listed on the Jamaica Social Stock Exchange (JSSE), are supported by members of the N.C.B. Foundation (NCBF)
Board, government officials and representatives from the Jamaica Stock Exchange. The listing was made possible through a combined donation of $7.5M from NCBF and NCBCM. 12. Chairman
of the NCB Financial Group, Michael Lee-Chin, gets illustrative in a mentorship session with a group of Jamaican MSMEs and entrepreneurs. 13. Members of the N.C.B. Foundation team, along
with a group of individual donors deliver care packages, masks, and laptops to support the Oracabessa Primary and High Schools under the COVID-19 Education Support Initiative, as well as the
fisherfolk in the parish. 14. Some of the beneficiaries of the 2019 N.C.B. Foundation Grant a Wish initiative celebrate with Michael Lee-Chin, chairman of the NCB Financial Group, during the
presentation ceremony. 15. Patrice Smith (left), helps to hand out tokens to children who attended the Family Day held at the Tower Street Correctional Facility in December 2019. In partnership
with the Lay Magistrates of Jamaica, Kingston Chapter, this initiative sought to reunite families, and by extension promote inmate rehabilitation by keeping them connected to their loved ones.
AC C EL ER ATE 144
MD&A
Corporate Social
1 2
3 4
5 6
1. Director of the Guardian Group Foundation, Fitzroy Brown, (right) cordially bumps elbows with Michael Leslie, Acting Executive Director, Jamaica Cancer Society, after handing over $100,000
on behalf of the Guardian Group Foundation. This donation was directed towards the administrative expenses of the organisation whose fundraising activities were curtailed due to the COVID-19
pandemic. 2. To support the sanitisation needs of several facilities for seniors, Guardian Life Limited donated over twenty gallons of hand sanitiser and rubbing alcohol to the Horizon Home
for the Aged, Harrison Memorial Home for the Aged and the Golden Age Home. 3. To help address the issue of food security in St. James, the Guardian Group Foundation supported a key
COVID-19 response project in St. James, spearheaded by Bishop the Honorable Conrad H. Pitkin, Custos Rotulorum for the parish. Through a generous donation of $250,000, 500 households
will be supplied with seedlings and cash crops to start their own backyard or containerised gardens that will serve as alternative sources of food and income. 4. The Charlie Smith High School
computer lab benefitted from a donation of desktop computers, surge protectors and workstations worth $1M, from Guardian Life Limited. 5. To help combat the spread of the COVID-19 virus
at the Department of Correctional Services, Guardian Life Limited donated two 1,200-gallon water tanks and pumps to help provide water for sanitisation and hygiene purposes.
6. Amado Marcano, Branch Manager at Guardian Life, presented one of the football division prizes to a team at the Barbados Football Association’s youth football tournament.

CONTINUED
9 10
7. In November, Clarien hosted an intimate fireside chat called ‘Journey of a Champion’ with Flora Duffy. The Bermudian world triathlon champion spoke to girls and women of all ages about
the challenges she had to overcome to achieve her personal goals. The exclusive event was open to Clarien Bank private banking clients. 8. Seven members of Clarien’s Marketing and Product
Management team generously gave their time to volunteer at Meals on Wheels, helping to prepare meals for those who are unable. 9. In December 2019, Clarien proudly hosted its 13th
Annual Holiday GiveBack Campaign, which raised BMD$15,000 for Meals on Wheels, a not-for-profit organisation that prepares freshly-cooked meals for those unable to cook for themselves,
such as the sick, elderly and disabled. 10. Clarien Bank customer Francine Hodgson was announced the winner of the iBank Real-Time Account-Opening Campaign, taking home a brand
new Pedego Electric Bike.
AC C EL ER ATE 146
Financial
Statements
NCB FINANCIAL GROUP LIMITED
SEPTEMBER 30, 2020

Index
Directors’ Report 150
Independent Auditor's Report to the Members 151
FINANCIAL STATEMENTS
Consolidated income statement 163
Consolidated statement of comprehensive income 164
FINANCIAL STATEMENTS - INDEX

Consolidated statement of financial position 165
Consolidated statement of changes in equity 167
Consolidated statement of cash flows 168
Statement of comprehensive income 169
Statement of financial position 170
Statement of changes in equity 171
Statement of cash flows 172
Notes to the Financial Statements 173
AC C EL ER ATE 148
Index
NOTES TO THE FINANCIAL STATEMENTS
NOTE NOTE
1. Identification and Principal Activities 173 31. Other Assets 246
2. Significant Accounting Policies 177 32. Due to Banks 246
Critical Accounting Estimates and Obligations Under Securitisation

33. 247
3. Judgments in Applying Accounting 208 Arrangements
Policies
34. Other Borrowed Funds 249
Responsibilities of the Appointed
4. 213 35. Interests in Structured Entities 251
Actuaries and External Auditors
5. Segment Reporting 214 36. Third Party Interests in Mutual Funds 252
6. Net Interest Income 221 37. Investment Contract Liabilities 252
7. Net Fee and Commission Income 222 38. Segregated Fund Liabilities 253
Gain on Foreign Currency and Liabilities under Annuity and Insurance

8. 222 39. 253
Investment Activities Contracts
9. Premium Income 223 40. Post-employment Benefits 266
Net Policyholders’ and Annuitants 41. Other Liabilities 275

10. 223
Benefits and Reserves
42. Share Capital 275
11. Dividend Income 225
FINANCIAL STATEMENTS - INDEX
43. Impairment tests for goodwill 276

12. Staff Costs 225
44. Fair Value and Capital Reserves 277
13. Credit Impairment Losses 226
45. Loan Loss Reserve 277
14. Other Operating Expenses 226
46. Banking Reserve Fund 277
15. Taxation 227
47. Retained Earnings Reserve 278
16. Earnings per Stock Unit 229
48. Cash Flows from Operating Activities 278
Cash in Hand and Balances at Central
17. 229 Related Party Transactions and
Banks 49. 279
Balances
18. Due from Banks 230
50. Financial Risk Management 282
19. Derivative Financial Instruments 230
51. Fair Values of Financial Instruments 343
20. Reverse Repurchase Agreements 232
52. Fiduciary Activities 347
21. Loans and Advances 232
53. Dividends 347
22. Investment Securities 233
Business Combination and Disposal of
54. 347
23. Pledged Assets 235 Subsidiary and Portfolio
24. Investment in Associates 236 55. Non-Controlling Interest 352
25. Investment Properties 239 Reconciliation of Liabilities arising from

56. 354
Financial Activities
26. Properties for Development and Sale 240
57. Leases 356
27. Reinsurance Assets 240
58. Litigation and Contingent Liabilities 359
28. Intangible Assets 241
59. Changes in Accounting Policies 361
29. Property, Plant and Equipment 242
Offsetting Financial Assets and Financial
60. 363
30. Deferred Income Taxes 243 Liabilities
61. Restatements and reclassifications 365

Directors’
Report
The directors submit herewith the Consolidated Mrs Thalia G. Lyn, OD

Income Statement of NCB Financial Group Limited
and its subsidiaries for the year ended September Professor Alvin G. Wint, CD - Lead
30, 2020, together with the Consolidated Statement Independent Director
of Financial Position as at that date:
Mr Adrian C. Lee-Chin (appointed July 29,
2020)
Operating Results
$’000
Gross operating revenue 256,816,559
Profit before taxation 27,573,476 Company Secretary
Taxation (690,064)
Net profit 26,883,412 The Company Secretary is Mr Dave L. Garcia.
Dividends
FINANCIAL STATEMENTS - DIRECTORS’ REPORT

Pursuant to Article 94-96 of the Company’s Articles
The following dividends were paid during the year: of Incorporation, one third of the Directors (or the
number nearest to one third) other than the Man-
aging Director (that is, our President and Group
$0.90 per ordinary stock unit was paid in
Chief Executive Officer) and Deputy Managing
December 2019
Director (that is, our Group Chief Financial Officer
1.00 per ordinary stock unit was paid in and Deputy Chief Executive Officer) will retire at the
March 2020 Annual General Meeting and shall then be eligible
for re-election. The Directors retiring are Prof. Alvin
Wint, CD and Mr Robert Almeida.
The directors recommend that the Company’s final
dividend be $1.90 representing the aggregate of the MR ADRIAN LEE-CHIN was appointed Director of
interim dividends declared in 2020. the Company July 29, 2020. Under Article 103 of
the Company’s Articles of Incorporation his appoint-
Directors ment expires on the date of this Meeting and being
eligible he offers himself for re-election.
During the financial year, the Board of Directors
comprised:
The auditors, PricewaterhouseCoopers, have indi-
Hon. Michael A. Lee-Chin, OJ – Chairman cated their willingness to continue in office and offer
themselves for re-appointment.
Hon. Patrick A.A. Hylton, OJ, CD –
President & Group Chief Executive Officer
Mr Dennis G. Cohen – Group Chief

On behalf of the Board
Financial Officer & Deputy Chief Executive
Officer
Mr Robert W. Almeida
Mrs Sandra A.C. Glasgow Dave L. Garcia

Company Secretary
Mrs Sanya M. Goffe
AC C EL ER ATE 150
Independent auditor’s report
To the Members of NCB Financial Group Limited
Report on the audit of the consolidated and stand-alone financial

statements
Our opinion
In our opinion, the consolidated financial statements and the stand-alone financial statements give a true
and fair view of the consolidated financial position of NCB Financial Group Limited (the Company) and its
subsidiaries (together ‘the Group’) and the stand-alone financial position of the Company as at
September 30, 2020, and of their consolidated and stand-alone financial performance and their
consolidated and stand-alone cash flows for the year then ended in accordance with International
FINANCIAL STATEMENTS - INDEPENDENT AUDITOR’S REPORT
Financial Reporting Standards (IFRS) and with the requirements of the Jamaican Companies Act.
What we have audited

The Group’s consolidated and stand-alone financial statements comprise:
● the consolidated statement of financial position as at September 30, 2020;
● the consolidated income statement for the year then ended;
● the consolidated statement of comprehensive income for the year then ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended;
● the statement of financial position as at September 30, 2020;
● the statement of comprehensive income for the year then ended;
● the statement of changes in equity for the year then ended;
● the statement of cash flows for the year then ended; and
● the notes to the financial statements, which include significant accounting policies and other
explanatory information.
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated and stand-alone financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
ǡǡǡ͵͹ʹǡǡ
ǣȋͺ͹͸Ȍͻʹʹ͸ʹ͵Ͳǡ ǣͺ͹͸Ȍͻʹʹ͹ͷͺͳǡǤǤȀ
L.A. McKnight P.E. Williams B.L. Scott B.J. Denning G.A. Reece P.A. Williams R.S. Nathan C.I. Bell-Wisdom G.K. Moore T.N. Smith DaSilva K.D. Powell.

Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in
accordance with the IESBA Code.
Our audit approach

Audit scope
As part of designing our audit, we determined materiality and assessed the risks of material misstatement
in the consolidated and stand-alone financial statements. In particular, we considered where management
made subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits, we
also addressed the risk of management override of internal controls, including, among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due

to fraud.
How we tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on
the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
We determined the scope of our audit by first considering the internal organisation of the Group and then
identifying the components of the audit that have the most significant impact on the consolidated financial
statements. The Group comprised 50 reporting components of which, we selected 23, which represents
the principal business units within the Group and are located in Jamaica, Bermuda, Trinidad and Tobago
and the Dutch Antilles. Full scope audits were performed for 14 components, while audits of one or more
financial statements line items were performed for 9 components. The audit work performed covered 97%
of the Group’s total assets and 99% of total revenue. For business units located in the Dutch Antilles, we
used component auditors from a non-PwC firm that is familiar with the local laws and regulations to
perform this audit work.
Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated and stand-alone financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated and stand-alone financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined that there are no key audit matters, as it pertains to the stand-alone financial statements, in
our report.
AC C EL ER ATE 152
Key audit matter How our audit addressed the key audit matter
IFRS 9 ‘Financial Instruments’ –

Probabilities of Default, Forward Looking
Information and Significant Increase in
Credit Risk (Group)
See notes 2(i), 21 and 22 to the financial statements

for disclosures of related accounting policies,
judgements, estimates and balances.
As at September 30, 2020, the Group’s loans Our approach to addressing the matter, with the
and advances totalled $471.5 billion. The assistance of our valuation specialist, involved the
Group’s investment securities measured at following procedures, amongst others:
amortised cost and fair valued through other
comprehensive income (FVOCI) totalled • Updated our understanding of management’s
$659.9 billion. In aggregate, the above ECL model including any changes to source data
exposures represent 63% of total assets at the and assumptions.
reporting date. The resultant impairment
recorded under the expected credit loss (ECL) • Tested the completeness of all loans and
impairment model amounted to $18.6 billion for advances and debt securities to determine
loans and advances and $1 billion for debt whether all items were included in the ECL
securities. models by agreeing the models to detailed loans
and securities listings.
In assessing impairment, IFRS 9 prescribes a
forward looking ECL impairment model which • Evaluated the reasonableness of management’s
takes into account reasonable and supportable judgements pertaining to PD, SICR and forward
forward looking information as well as looking information, including macroeconomic
probabilities of default (PD). factors, impacting the weighting of the scenarios
due to the negative impact of COVID-19 as
Probabilities of default represent the likelihood follows:
of a borrower defaulting on its obligation over
the next twelve months or over the remaining Debt securities
lifetime of the obligation. The twelve month
and lifetime PDs are determined differently for PD:
loans and investments.
● Tested the critical data fields used in the ECL
For loans and advances, management
model, such as the maturity date, amortised
developed PDs based on the Group’s specific
historical default rates for each industry cost, accrued interest, credit rating and interest
classification. In performing historical analyses, rate by tracing data back to relevant source
management identified economic variables documents.
impacting credit risk and ECLs for each
portfolio. ● Agreed the inputs used to calculate the PDs to
external sources such as external rating
For debt securities, comprising sovereign and agencies.
corporate securities, PDs are developed by
reference to external data collated by Standard
& Poor’s (S&P) with adjustments for industry
and country specific risks, where appropriate.

The unprecedented economic impact of SICR:

COVID-19 resulted in a significant increase in
credit risk (SICR) for a number of borrowers • Tested, on a sample basis, the accuracy of
who migrated from Stage 1 to Stage 2 based the initial credit risk and the credit risk at the
on an assessment of the industry in which the reporting date using rating agency definitions
borrower operates and other relevant factors. of ‘investment grade’ and evaluated the
In the event of a SICR, an allowance (or appropriateness of the group classification of
provision) is required for ECL resulting from all debt securities as Stage 2.
possible default events over the expected life
of the financial instrument (‘lifetime ECL’). ● Performed an independent qualitative
assessment for a sample of borrowers to
The estimation and application of forward determine whether there was any adverse
public information affecting the criteria used

looking information requires significant
judgement. Stage 1 and Stage 2 credit loss to perform the staging.
allowances are modelled based on the
macroeconomic variables (or changes in ● Inspected the financial statements of a
macroeconomic variables) which most closely sample of borrowers to determine whether
correlate with credit losses in the relevant there was any significant downturn in
portfolio. Each macroeconomic scenario used financial performance before and during the
in the ECL calculation incorporates forecasts pandemic. This aided in assessing
of the relevant macroeconomic variables. management’s staging for borrowers,
particularly for those who requested
The estimation of ECL in Stage 1 and Stage 2
forbearance as a result of COVID-19.
is a discounted, probability-weighted estimate
that considers a minimum of three future
Forward Looking Information:
macroeconomic scenarios. The base case
scenario is based on macroeconomic forecasts
which are publicly available. Upside and ● Assessed the reasonableness of the Group’s
downside scenarios are set relative to the base methodology for determining economic
case scenario based on reasonably possible scenarios and the probability weightings
alternative macroeconomic conditions. applied.
Additional adjustments to the base, best case
and worst case scenario weightings were ● Evaluated the reasonableness of the increase
required as a result of the COVID-19 in the weighting used for the worst case
pandemic. scenario by agreeing the forward looking
economic information to external sources
We focused on this area due to the impact of published or pronounced by reputable third
COVID-19 on credit risk, the complexity of the parties.
techniques used to determine PDs and identify
SICR, and the number of significant ● Sensitized the probability weightings used in
judgements made by management regarding the ECL calculation.
possible future economic scenarios.
AC C EL ER ATE 154
Loans and advances
PD:
● Tested the critical data fields used in the ECL
model for the PD determination, such as
default date, effective interest rate, write-off
data, and loan type by tracing data back to
source documents.
● Reperformed the calculation of days past

due, a key data input into the PD parameter,
in the Group’s banking system on a sample
basis.
SICR:
● Evaluated staging of loans and advances by
identifying the industries severely impacted
by the pandemic. These were identified
based on restrictions imposed by
governments across the Group’s operations.
● Tested whether the loans of borrowers from

these industries migrated to Stage 2.
Forward Looking Information:

● Assessed the reasonableness of the Group’s
methodology for determining economic
scenarios.
● Evaluated the reasonableness of the increase

in the weighting used for the worst case
scenario by agreeing the forward looking
economic information to external sources
published or pronounced by reputable third
parties.
● Sensitized the probability weightings used in

the ECL calculation.
The results of our procedures indicated that the

assumptions used by management for determining
the probabilities of default, significant increase in
credit risk and forward looking information were not
unreasonable.

Methodologies and assumptions used for

determining insurance contract liabilities
for life insurance and annuity contracts
(Group)
See notes 2(w) and 39 to the financial statements

for disclosures of related accounting policies,
judgements, estimates and balances.
As at September 30, 2020, reserves for life Our approach to addressing the matter, with the
insurance and annuity contracts account for assistance of our actuarial specialists, involved the
$359.3 billion or 22.5% of the total liabilities of following procedures, amongst others:
the Group.

• Tested the completeness, accuracy and
Economic assumptions, such as investment reliability of the underlying data utilised by
return, associated discount rates and borrowing management to support the actuarial valuation.
rates, policy expenses and assumptions We tested a sample of contracts to assess
including mortality and persistency are key whether contract features and demographic
inputs used to estimate these long term data corresponded to the data file given by
management to its actuary.
liabilities.
• Evaluated the methodologies and assumptions
Management used internal and external
utilized by management’s actuarial experts
actuarial experts to assist in determining these considering industry and component specific
assumptions and in valuing these actuarial facts and circumstances. Specific areas of
liabilities. Based on management’s focus were mortality assumptions, contract
assessment, COVID-19 did not have a lapses, investment return and associated
significant impact on the liabilities for life discount rate, and policy expenses, all of which
insurance and annuity insurance contracts. are based on entity experience or publicly
available information.
We focused on this area because the valuation
of the provisions for the settlement of future The results of our procedures indicated that the
claims involves complex and subjective assumptions used by management for determining
judgements about future events, both internal insurance contract liabilities for life insurance and
and external to the business, for which small annuity insurance contracts were not unreasonable
changes in assumptions may result in and that the methodologies used were actuarially
significant impacts to the valuation of these established and accepted and appropriate in the
liabilities. circumstances.
AC C EL ER ATE 156
Goodwill impairment (Group)
See notes 2(o)(i), 3(a), 28 and 43 to the

financial statements for disclosures of related
accounting policies, judgements, estimates
and balances.
The total carrying value of goodwill is $20.4 Our approach to addressing the matter, with the
billion or 1.1% of total assets as at assistance of our valuation specialist, involved the
September 30, 2020. following procedures, amongst others:
In accordance with IAS 36, ‘Impairment of ● Updated our understanding of management’s

Assets’, management performed an annual approach to performing their annual
goodwill impairment assessment to determine impairment assessment. This included

whether the carrying value exceeded the updating our understanding of the process by
recoverable amount of the cash generating which management’s key assumptions and
unit (CGU) to which the goodwill is allocated methodologies were developed and assessing
and is therefore impaired at the reporting date. their appropriateness.
Goodwill relating to the recoverable amount of
a CGU is calculated as the higher of the value- ● Compared previous forecasts to actual results
in-use and fair value less costs of disposal. in order to assess the performance of the
business and the extent to which reliance
Management determined the recoverable
could be placed on management’s ability to
amount by reference to value-in-use which is
forecast.
based on discounted cash flow projections
over which management makes significant
● Confirmed that the three-year forecast used in
judgements on key inputs. As a result of the
the valuation model was consistent with the
assessment, management determined there
was no impairment as at September 30, 2020. Board approved business plan, and that the
key assumptions were subject to oversight
We focused on this area as the goodwill from the Board of Directors.
impairment assessment requires significant
management judgement and estimation, is ● Tested the key assumptions, including the
sensitive to changes in key assumptions and impact of COVID-19 on those key assumptions
due to the challenges involved in determining as follows:
the impact of COVID-19 on those key
assumptions. • Evaluated the revenue growth rate and
the discount rate against valuations of
The key assumptions were assessed by similar companies with the assistance of
management as being: our valuation specialist.
● revenue growth rate; • Compared the key assumptions to

● projected reinsurance; externally derived data where available,
● claims ratio; including market expectations of
● projected expenses; investment return, projected economic
● terminal growth rate projections; and growth, terminal growth rate and interest
● discount rate. rates.

• Agreed the projected claims and expense

ratios and reinsurance to audited financial
information and assessed for
reasonableness in light of the current
economic climate and market outlook.
• Tested the calculations for mathematical

accuracy and assessed the sensitivity of
the calculations by varying the key
assumptions and adjustments within
management’s cash flow forecast.
The results of our procedures indicated

management’s determination that goodwill was not
impaired at the reporting date was not
unreasonable.
Business combination (Group) - finalisation
of purchase price allocation (PPA) of
liabilities under annuity and insurance
contracts
See notes 3(a), 54 and 61 to the financial
statements for disclosures of related accounting
policies, judgements, estimates and balances.
The Group acquired a controlling interest in Our approach to addressing the matter, with the
Guardian Holdings Limited (GHL) in the prior assistance of our actuarial specialist, involved the
financial year for a total consideration of $28.1 following procedures, amongst others:
billion and consequently, GHL became a
subsidiary of the Group. ● Evaluated the qualifications, competence,
The purchase price allocation accounting for independence and objectivity of management’s
the acquisition was recorded on a provisional actuarial expert who performed the valuation.
basis in 2019, as allowed under IFRS 3
‘Business Combinations’, and finalised during ● Assessed the methodology used for
the current financial year. consistency with actuarial standards and
established best practice.
We focused on this area due to the
judgements and assumptions applied by ● Evaluated the assumptions used by
management in finalising the fair value of management and the actuarial expert over the
select balances with the most significant being present value of the in-force business by
liabilities under annuity and insurance comparing to approaches taken by comparable
contracts, which resulted in a $9.2 billion insurers and evaluating relevant experience
adjustment. The main component of the data.
adjustment related to the determination of the
present value of the in-force business acquired
(PVIF), which was actuarially determined and The results of our procedures indicated that the
was subject to complex calculations. methodology and assumptions used by management
for assessing the fair value of liabilities under annuity
The Group was assisted by an external and insurance contracts were not unreasonable.
actuarial expert in this process.
AC C EL ER ATE 158
Valuation of unquoted corporate debt and

government securities classified as fair
value through profit or loss, fair value
through other comprehensive income and
pledged assets (Group).
See notes 3(d), 23 and 51 to the financial

statements for disclosures of related accounting
policies, judgements, estimates and balances.
As at September 30, 2020, unquoted corporate Our approach to addressing the matter, with the
debt and government securities classified as assistance of our valuation expert, involved the
investment securities at fair value through following procedures, amongst others:
profit or loss, fair value through other

comprehensive income, and pledged assets • Updated our understanding of management’s
together account for $76 billion or 4% of total approach to performing the fair value assessment.
assets of the Group. This included updating our understanding of the
process by which management’s key assumptions
These securities are classified and disclosed and methodologies were developed and assessing
as Level 3 within the fair value hierarchy as their appropriateness.
one or more of the significant inputs is not
based on observable market data. • Tested key data inputs used in the valuation
model, including: issuance date, maturity date,
coupon rate and risk premium at issuance, by
For unquoted corporate debt and government
performing confirmation procedures and
securities, management uses valuation
comparison to source documentation on a sample
techniques which utilise the application of a
basis.
market yield curve adjusted by a risk premium
to discount the contractual cash flows of the • Independently developed territory specific yield
instruments. curves and compared them to management’s yield
curves.
We focused on this area as the yield curve is
an unobservable input requiring management’s • Tested, on a sample basis, the contractual cash
judgement and estimation, which is subject to flows of the underlying securities by comparing to
high estimation uncertainty. source documentation and evaluated the impact of
any variations.
The results of our procedures indicated that the

assumptions used by management for determining the
fair value of unquoted corporate debt and government
securities were not unreasonable.

Other information
Management is responsible for the other information. The other information comprises the Annual Report
(but does not include the consolidated and stand-alone financial statements and our auditor’s report
thereon), which is expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated and stand-alone financial statements does not cover the other information
and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and stand-alone financial statements, our responsibility is
to read the other information identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the consolidated and stand-alone financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance.

Responsibilities of management and those charged with governance for the
consolidated and stand-alone financial statements
Management is responsible for the preparation of the consolidated and stand-alone financial statements
that give a true and fair view in accordance with IFRS and with the requirements of the Jamaican
Companies Act, and for such internal control as management determines is necessary to enable the
preparation of consolidated and stand-alone financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated and stand-alone financial statements, management is responsible for
assessing the Group and Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group and Company’s financial
reporting process.
AC C EL ER ATE 160
Auditor’s responsibilities for the audit of the consolidated and stand-alone financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated and stand-alone
financial statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated and stand-alone financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated and stand-alone financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group and Company’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group or Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and stand-alone financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group or Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the consolidated and stand-alone financial
statements, including the disclosures, and whether the consolidated and stand-alone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated and stand-alone financial statements of the
current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare

circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on other legal and regulatory requirements

As required by the Jamaican Companies Act, we have obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
In our opinion, proper accounting records have been kept, so far as appears from our examination of
those records, and the accompanying consolidated and stand-alone financial statements are in agreement
therewith and give the information required by the Jamaican Companies Act, in the manner so required.
The engagement partner on the audit resulting in this independent auditor’s report is Paul Williams.
Chartered Accountants
November 29, 2020
Kingston, Jamaica
AC C EL ER ATE 162
NCB Financial Group Limited
Consolidated Income
Statement Page 1
September 30, 2020
(expressed in Jamaican dollars unless otherwise indicated)
Consolidated Income Statement
Year ended September 30, 2020
Restated
Note 2020 2019
$'000 $'000
Operating Income
Banking and investment activities

Interest income 74,421,878 65,068,228
Interest expense (21,932,169) (20,473,144)
Net interest income 6 52,489,709 44,595,084
Fee and commission income 25,925,325 24,172,608

Fee and commission expense (4,555,918) (4,992,775)
Net fee and commission income 7 21,369,407 19,179,833
Gain on foreign currency and investment activities 8 8,793,286 15,412,082

Credit impairment losses 13 (10,284,994) (4,824,734)
Dividend income 11 1,901,300 1,274,735
STATEMENT
STATEMENT
Other operating income 2,102,190 1,112,460

2,511,782 12,974,543
Net result from banking and investment activities 76,370,898 76,749,460
INCOME
INCOME
Insurance activities
Premium income 9 135,202,001 60,618,692
- CONSOLIDATED
- CONSOLIDATED
Insurance premium ceded to reinsurers 9 (42,003,606) (16,057,907)

Reinsurance commission income 8,470,579 3,594,053
Net underwriting income 101,668,974 48,154,838
Gross policyholders’ and annuitants’ benefits and reserves 10 (63,223,937) (35,682,380)
STATEMENTS
Reinsurance on policyholders’ and annuitants’ benefits and

STATEMENTS
10 7,016,737 8,376,399
reserves
Commission and other selling expenses (13,005,783) (6,417,342)
Net result from insurance activities 32,455,991 14,431,515
FINANCIAL
FINANCIAL
Net operating income 108,826,889 91,180,975
Operating Expenses
Staff costs 12 40,526,668 32,120,544
Depreciation and amortisation 8,529,471 6,941,434
Finance cost 1,411,727 -
Other operating expenses 14 31,097,938 25,674,925
81,565,804 64,736,903
Operating Profit 27,261,085 26,444,072
Share of profit of associates 24 312,391 2,897,176
Gain on disposal of associate 24 - 3,291,544
Gain on disposal of subsidiary - 2,626,425
Gain on revaluation of associate - 2,329,179
Profit before Taxation 27,573,476 37,588,396
Taxation 15 (690,064) (6,423,458)
NET PROFIT 26,883,412 31,164,938
Attributable to:
Stockholders of the parent 19,090,378 29,869,398
Non-controlling interest 55 7,793,034 1,295,540
26,883,412 31,164,938
Earnings per stock unit
Basic and diluted (expressed in $) 16 8.01 12.30

Comprehensive Income Page 2
September 30, 2020
Consolidated Statement of Comprehensive Income
Restated
Note 2020 2019
$'000 $'000
Net Profit 26,883,412 31,164,938
Other Comprehensive Income, net of tax -
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations 418,946 (487,254)
Share of other comprehensive income of associated companies - 10,198
418,946 (477,056)
Items that may be reclassified subsequently to profit or loss
Currency translation gains/(losses)
INCOME
5,409,780 (21,059)
INCOME
Share of other comprehensive income of associated companies - (169,019)
COMPREHENSIVE
Expected credit losses on debt instruments at fair value through
COMPREHENSIVE
other comprehensive income (FVOCI) (38,349) (350,671)
Unrealised (losses)/gains on securities designated as FVOCI (4,510,060) 14,150,375
Realised fair value gains on sale and maturity of securities
OF OF
designated as FVOCI (1,803,657) (4,012,903)
STATEMENT
Realised currency translation and other gains, of a former
STATEMENT
associated company - (1,426,598)
(942,286) 8,170,125
- CONSOLIDATED
- CONSOLIDATED
Total other comprehensive income (523,340) 7,693,069
TOTAL COMPREHENSIVE INCOME 26,360,072 38,858,007
STATEMENTS
Total comprehensive income attributable to:
STATEMENTS
Stockholders of parent 18,550,266 37,101,679
FINANCIAL
FINANCIAL
26,360,072 38,858,007
AC C EL ER ATE 164
Financial Position Page 3
September 30, 2020
Consolidated Statement of Financial Position
September 30, 2020
Restated
Note 2020
2019
$'000 $'000
ASSETS
Cash in hand and balances at Central Banks 17 74,039,589 62,535,389
Due from banks 18 178,898,210 141,357,186
Derivative financial instruments 19 653,735 239,279
Reverse repurchase agreements 20 9,518,854 7,837,898
Loans and advances, net of provision for credit losses 21 452,954,936 423,102,600
Investment securities 22 456,802,747 386,185,620
Pledged assets 23 401,757,217 378,988,276
FINANCIAL STATEMENTS - CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Investment in associates 24 6,955,109 5,545,451

Investment properties 25 33,751,227 31,385,216
Intangible assets 28 53,018,480 49,557,677
Property, plant and equipment 29 27,530,567 26,166,973
Right-of-use assets 57 4,543,678 -
Properties for development and sale 26 2,759,044 2,368,042
Reinsurance assets 27 26,532,008 33,779,448
Deferred income tax assets 30 14,634,857 8,141,066
Income tax recoverable 2,323,139 5,174,472
Letters of credit and undertaking 3,618,540 2,051,519
Other assets 31 49,968,338 51,883,490
Total Assets 1,800,260,275 1,616,299,602

Financial Position (Continued)
(Continued)
September 30, 2020 Page 4
Consolidated Statement of Financial Position (Continued)
September 30, 2020
Restated
Note 2020
2019
$'000 $'000
LIABILITIES
Due to banks 32 30,134,601 22,776,255
Customer deposits 573,968,886 504,678,536
Repurchase agreements 211,436,379 174,619,976
Obligations under securitisation arrangements 33 71,083,957 48,305,823
Derivative financial instruments 19 - 239,279
Other borrowed funds 34 125,066,336 124,953,101
Deferred income tax liabilities 30 11,244,924 18,265,560
FINANCIAL STATEMENTS - CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Third party interest in mutual funds 36 27,572,914 22,138,490
Segregated fund liabilities 38 14,255,178 16,549,531
Investment contract liabilities 37 41,682,306 39,257,656
Liabilities under annuity and insurance contracts 39 405,014,541 394,615,307
Post-employment benefit obligations 40 9,731,059 9,400,738
Letters of credit and undertaking 3,618,540 2,051,519
Lease Liabilities 57 4,597,994 -
Other liabilities 41 70,647,737 54,577,213
Total Liabilities 1,600,055,352 1,432,428,984
STOCKHOLDERS’ EQUITY
Share capital 42 153,827,330 153,827,330
Treasury shares 42 (15,150,201) (10,756,253)
Reserves from scheme of arrangement 44 (147,034,858) (147,034,858)
Fair value and capital reserves 44 12,216,660 13,158,946
Loan loss reserve 45 - 2,947,624
Banking reserve fund 46 6,735,063 6,625,209
Retained earnings reserve 47 58,580,000 43,820,000
Retained earnings 86,940,684 85,002,181
Equity attributable to stockholders of the parent 156,114,678 147,590,179
Total stockholders’ equity 200,204,923 183,870,618
Total stockholders’ equity and liabilities 1,800,260,275 1,616,299,602
Approved for issue by the Board of Directors on November 24, 2020 and signed on its behalf by:
Patrick Hylton, OJ, CD President and Group Chief Dennis Cohen Group Chief Financial Officer and
Patrick Hylton OJ, CD President and Group Chief Dennis Cohen Group Chief Financial Officer and
Professor Alvin Wint Lead Independent Director Dave Garcia Corporate Secretary
AC C EL ER ATE 166
FINANCIAL STATEMENTS - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
167
Page 5
Changes in Equity
2020
September 30,Consolidated Statement of Changes in Equity
(expressed in Jamaican dollars
Year ended unless otherwise
September indicated)
30, 2020
Reserves from the Fair Value Banking Retained Non-

Share Treasury Scheme of and Capital Loan Loss Reserve Earnings Retained controlling
Note Capital Shares Arrangement Reserves Reserve Fund Reserve Earnings interest Total
$’000 $’000 $’000 $’000 $’000 $’000 $'000 $'000 $'000 $'000
Balance at 1 October 2018 153,827,330 (1,050,785) (147,034,858) 5,449,609 3,224,798 6,598,442 39,250,000 67,987,338 9,506,204 137,758,078
Total comprehensive income as
- - - 7,709,337 - - - 29,099,367 1,576,390 38,385,094
previously presented
Transfer from Loan Loss Reserve - - - - (277,174) - - 277,174 - -
Transfer to Banking Reserve Fund - - - - - 26,767 - (26,767) - -
Transfer to Retained Earnings
- - - - - - 4,570,000 (4,570,000) - -
Reserve
Purchase of treasury shares 42 - (956,788) - - - - - - - (956,788)
Disposal of treasury shares 42 - 1,591,840 - - - - - 239,246 - 1,831,086
Non-controlling interest on acquisition
54 - - - - - - - - 29,069,702 29,069,702
of subsidiary
Recognition of treasury shares on
- (10,340,520) - - - - - - - (10,340,520)
acquisition of subsidiary
Dividends paid to non-controlling
- - - - - - - - (415,704) (415,704)
interest
Transaction with owners of the
Company

Dividends paid 53 - - - - - - - (8,297,152) - (8,297,152)
Balance at September 30, 2019 as
153,827,330 (10,756,253) (147,034,858) 13,158,946 2,947,624 6,625,209 43,820,000 84,709,206 39,736,592 187,033,796
previously presented
Impact of revised Purchase Price
Allocation on acquisition of majority - - - - - - - 292,975 (3,456,153) (3,163,178)
stake in Guardian Holding Limited
Balance at October 1, 2019 -
153,827,330 (10,756,253) (147,034,858) 13,158,946 2,947,624 6,625,209 43,820,000 85,002,181 36,280,439 183,870,618
Restated
Total comprehensive income - - - (942,286) - - - 19,492,552 7,809,806 26,360,072
Transfer from Loan Loss Reserve - - - - (2,947,624) - - 2,947,624 - -
Transfer to Banking Reserve Fund - - - - - 109,854 - (109,854) - -
Transfer to Retained Earnings
- - - - - - 14,760,000 (14,760,000) - -
Reserve
Purchase of treasury shares 42 - (4,443,775) - - - - - - - (4,443,775)
Disposal of treasury shares 42 - 49,827 - - - - - (49,827) - -
Dividends paid to non-controlling
- - - - - - - (166,953) - (166,953)
interest
Transaction with owners of the
-
Company
Dividends paid - - - - - - - (5,415,039) - (5,415,039)
Balance at September 30, 2020 153,827,330 (15,150,201) (147,034,858) 12,216,660 - 6,735,063 58,580,000 86,940,684 44,090,245 200,204,923
Cash Flows Page 6
September 30, 2020
Consolidated Statement of Cash Flows
Note 2020 2019

$’000 $’000
Cash Flows from Operating Activities
Net profit 26,883,412 31,164,938
Adjustments to reconcile net profit to net cash provided by/(used in)
143,508,764 (20,428,353)
operating activities
Net cash provided by operating activities 48 170,392,176 10,736,585
Cash Flows from Investing Activities
Acquisition of property, plant and equipment 29 (4,531,453) (4,170,072)
Acquisition of intangible assets – computer software 28 (9,640,375) (4,789,731)
Net cash acquired on purchase of subsidiary 54 - 16,645,363
Proceeds from disposal of property, plant and equipment 82,671 217,403
Proceeds from disposal of subsidiary, net 54 - 6,465,579
FINANCIAL STATEMENTS - CONSOLIDATED STATEMENT OF CASH FLOWS

Purchase of investment property 25 (4,150,516) (1,197,161)
Proceeds from disposal of investment property 1,118,391 -
Dividends received from associates 24 - 731,336
Purchases of investment securities (705,712,209) (302,853,958)
Sales/maturities of investment securities 581,889,676 370,971,091
Net cash (used in)/provided by investing activities (140,943,815) 82,019,850
Cash Flows from Financing Activities
Proceeds from securitisation arrangements 35,392,925 -
Repayment of securitisation arrangements (12,077,688) (8,798,148)
Proceeds from other borrowed funds 24,192,548 47,136,182
Repayments of other borrowed funds (27,547,524) (40,093,210)
Due to banks 4,055,319 (5,629,837)
Purchase of treasury shares 42 (4,443,775) (956,788)
Proceeds from disposal of treasury shares 42 49,827 1,831,086
Dividends paid (5,415,039) (8,297,152)
Net cash provided by/(used in) financing activities 14,206,593 (14,807,867)
Effect of exchange rate changes on cash and cash equivalents 651,908 3,739,331
Net increase in cash and cash equivalents 44,306,862 81,687,899
Cash and cash equivalents at beginning of period 156,858,541 75,170,642
Cash and Cash Equivalents at End of Period 201,165,403 156,858,541
Comprising:
Cash in hand and balances at Central Banks 17 38,487,461 25,218,426
Due from banks 18 175,089,394 133,792,014
Reverse repurchase agreements 20 5,814,046 2,198,982
Investment securities 22 230,004 10,806,108
Due to banks 32 (18,455,502) (15,156,989)
201,165,403 156,858,541
AC C EL ER ATE 168
Statement of
Comprehensive Income Page 7
September 30, 2020
Statement of Comprehensive Income
Note 2020 2019

$’000 $’000
Income
Management fees 7 3,193,467 7,226,241
Dividend income 11 14,652,184 9,720,304
Credit impairment losses 13 (263) (1,408)
Losses on foreign currency activities 8 (4,919,960) (1,460,519)
12,925,428 15,484,618
Expenses
Staff costs 12 4,337,964 3,551,637

Finance cost 33,611 -
Other operating expenses 14 624,312 2,054,781
FINANCIAL STATEMENTS - STATEMENT OF COMPREHENSIVE INCOME
4,995,887 5,606,418
Operating profit 7,929,541 9,878,200
Interest income 6 507,458 717,380
Interest expense 6 (5,805,066) (4,604,443)
Profit before Taxation 2,631,933 5,991,137
Taxation 15 2,726,972 1,144,567
NET PROFIT 5,358,905 7,135,704
Other comprehensive income
Changes in unrealised gains on securities designated as

304 1,331
FVOCI
TOTAL COMPREHENSIVE INCOME 5,359,209 7,137,035

Statement of Financial
Position
Statement of Financial Position
September 30, 2020
Note 2020 2019

$’000 $’000
ASSETS
Due from banks 18 2,760,873 3,844,168
Loan to related party 21 251,893 251,852
Investment securities 22 7,114,685 7,115,932
Investment in subsidiaries 214,033,422 214,033,422
Right-of-use asset 97,098 -
Deferred income tax assets 30 5,366,278 2,639,306
Income tax recoverable 407,135 195,993
FINANCIAL STATEMENTS - STATEMENT OF FINANCIAL POSITION

Other assets 31 13,707,011 15,023,698
Total Assets 243,738,395 243,104,371
LIABILITIES
Due to banks 32 13,359,063 12,612,020
Other borrowed funds 34 75,562,050 76,227,470
Lease liabilities 98,361 -
Other liabilities 41 623,151 847,855
Total Liabilities 89,642,625 89,687,345
EQUITY
Share capital 42 153,827,330 153,827,330
Treasury shares (561,635) (561,635)
Fair value reserves 1,635 1,331
Retained earnings 828,440 150,000
Total Equity 154,095,770 153,417,026
Total Equity and Liabilities 243,738,395 243,104,371
Approved for issue by the Board of Directors on November 24, 2020 and signed on its behalf by:
Patrick Hylton, OJ, CD President and Group Chief Dennis Cohen Group Chief Financial
Executive Officer Officer and Deputy Chief
Patrick Hylton, OJ, CD President and Group Chief Dennis Cohen Executive
Group Chief Officer
Financial
Executive Officer Officer and Deputy Chief
Executive Officer
AC C EL ER ATE 170
FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN EQUITY
171
Statement of
Changes in Equity
September 30, 2020
(expressed in Jamaican dollars unless otherwise indicated) Page 9
Statement of Changes in Equity
Share Treasury Fair Value Retained

Note Capital Shares Reserves Earnings Total
$’000 $’000 $’000 $’000 $’000
Balance at September 30, 2018 153,827,330 (720,656) - 916,119 154,022,793
Total comprehensive income - - 1,331 7,135,704 7,137,035
Purchase of treasury shares 42 - (1,551,736) - - (1,551,736)
Disposal of treasury shares 42 - 1,710,757 - 466,907 2,177,664

Transaction with owners of the Company -
Dividends paid 53 - - - (8,368,730) (8,368,730)
Balance at September 30, 2019 153,827,330 (561,635) 1,331 150,000 153,417,026

Total comprehensive income - - 304 5,358,905 5,359,209
Transaction with owners of the Company -
Dividends paid 53 - - - (4,680,465) (4,680,465)
Balance at September 30, 2020 153,827,330 (561,635) 1,635 828,440 154,095,770
Statement of
Cash Flows Page 10
September 30, 2020
Statement of Cash Flows
2020 2019
Note
$'000 $'000
Cash Flows from Operating Activities
Net profit 5,358,905 7,135,704
Adjustments to reconcile net profit to net cash
provided by/(used in) operating activities: -
33,611
Finance cost
Interest income 6 (507,458) (717,380)
Interest expense 6 5,805,066 4,604,443
Income tax expense 15 (2,726,972) (1,144,567)
Foreign exchange losses 8 4,919,960 1,460,519
Amortisation of upfront borrowing fees 108,237 63,587
Changes in operating assets and liabilities:
Loans and advances - (250,000)
Other 453,893 (12,084,841)
FINANCIAL STATEMENTS - STATEMENT OF CASH FLOWS

8,086,337 (8,068,239)
Interest received 392,773 715,450
Interest paid (5,778,104) (3,505,914)
Income tax paid (211,142) (129,763)
2,489,864 (10,988,466)
Net cash provided by/(used in) operating activities 7,848,769 (3,852,762)
Cash Flows from Investing Activities
Outflow of cash to acquire subsidiary 54 - (28,100,754)
Net cash used in investing activities - (28,100,754)
Cash Flows from Financing Activities
Purchase of treasury shares - (1,551,756)
Proceeds from disposal of treasury shares - 1,710,757
Proceeds from other borrowed funds 1,905,587 52,971,267
Repayment of other borrowed funds (5,529,231) (37,020,669)
Due to banks 629,509 12,612,020
Dividends paid (4,680,465) (8,368,730)
Net cash (used in)/provided by financing activities (7,674,600) 20,352,889
Effect of exchange rate changes on cash and cash equivalents (1,257,464) (1,086,094)
Net decrease in cash and cash equivalents (1,083,295) (12,686,721)
Cash and cash equivalents at beginning of period 3,844,168 16,530,889
Cash and Cash Equivalents at End of Period 18 2,760,873 3,844,168
AC C EL ER ATE 172
Notes to the
Financial Statements Page 11
September 30, 2020
Notes to the Financial Statements
September 30, 2020
1. Identification and Principal Activities
NCB Financial Group Limited (“the Company”) is a financial holding company, incorporated and domiciled in
Jamaica. The Company is 52.10% (2019 – 53.08%) owned by AIC (Barbados) Limited. The ultimate parent
company is Portland Holdings Inc., incorporated in Canada. Portland Holdings Inc. is controlled by Hon. Michael
A. Lee-Chin, OJ, Chairman of the Company.
The Company’s registered office is located at 32 Trafalgar Road, Kingston 10, Jamaica.
The Company’s ordinary stock units are listed on the Jamaica Stock Exchange and the Trinidad and Tobago
Stock Exchange.
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
- NOTES
STATEMENTS FINANCIAL
THETHE
TOTO STATEMENTS
STATEMENTS
FINANCIAL
173
Notes to the
September 30, 2020
September 30, 2020
1. Identification and Principal Activities (Continued)
The Company’s subsidiaries and other consolidated entities, listed below, which together with the Company are
referred to as “the Group”, engage in the following principal activities:
Percentage Ownership
Country of by the Company and its
Incorporation Principal Activities Subsidiaries
Company Subsidiary
National Commercial Bank Jamaica Limited Jamaica Commercial Banking 100
Data-Cap Processing Limited Jamaica Security Services 100
MSIB Limited (formerly Mutual Security Jamaica Dormant 100
Insurance Brokers Limited)
NCB Capital Markets Limited Jamaica Securities Dealing and Stock 100
STATEMENTS
Brokerage Services
STATEMENTS
NCB Capital Markets (Cayman) Limited Cayman Securities Dealing 100
NCB Global Finance Limited Trinidad Merchant Banking 100
FINANCIAL
NCB Capital Markets (Barbados) Barbados Brokerage Services 100
FINANCIAL
Limited
NCB Capital Markets SA Dominican Inactive 100
THE
THE
Republic
TOTO
NCB (Cayman) Limited Cayman Commercial Banking 100
- NOTES
- NOTES
NCB Trust Company (Cayman) Limited* Cayman - 100
STATEMENTS
STATEMENTS
NCB Employee Share Scheme Jamaica Dormant 100
NCB Insurance Company Limited Jamaica Life Insurance, Investment and 100
Pension Fund Management Services
FINANCIAL
FINANCIAL
N.C.B. (Investments) Limited Jamaica Dormant 100
N.C.B. Jamaica (Nominees) Limited Jamaica Dormant 100
NCB Remittance Services (Jamaica) Limited Jamaica Dormant 100
NCB Financial Services UK Limited* United - 100
Kingdom
West Indies Trust Company Limited Jamaica Trust and Estate Management 100
Services
NCB Global Holdings Limited Trinidad Holding Company 100
Guardian Holdings Limited Trinidad Holding Company 61.97
Guardian Life of the Caribbean Limited Trinidad Life and Health Insurance and 100
Pensions Services
Guardian Life Limited Jamaica Life and Health Insurance and 100
Pensions Services
Fatum Life Insurance N.V. Curacao Life and Health Insurance and 100
Pensions Services
Fatum Life Aruba N.V. Aruba Life and Health Insurance and 100
Pensions Services
Fatum Health N.V. Curacao Life and Health Insurance and 100
Pensions Services
Guardian Life (OECS) Limited Grenada Life and Health Insurance and 100
Pensions Services
Guardian General Insurance Limited Trinidad Property and Casualty Insurance 100
Services
AC C EL ER ATE 174
174
Notes to the
September 30, 2020
September 30, 2020
Country of Principal Activities Percentage Ownership

Incorporation by the Company and its
Subsidiaries
Company Subsidiary
Guardian Holdings Limited (Continued)
Guardian General Insurance Jamaica Jamaica Property and Casualty 100
Limited Insurance Services
Fatum General Insurance N.V. Curacao Property and Casualty 100
Insurance Services
Fatum General Insurance Aruba N.V. Aruba Property and Casualty 100
Insurance Services
Fatum Brokers Holding B.V. Curacao Property and Casualty 100
Insurance Services
STATEMENTS
Thoma Exploitatie B.V. Netherlands Property and Casualty 100

STATEMENTS
Insurance Services
Guardian Re (S.A.C) Limited Bermuda Property and Casualty 100
Insurance Services
FINANCIAL
FINANCIAL
Guardian General (OECS) Limited Grenada Property and Casualty 100

Insurance Services
THETHE
Guardian Group Trust Limited Trinidad Asset Management 100

TOTO
Guardian Asset Management and Trinidad Asset Management 100

- NOTES
Investment Services Limited

- NOTES
Laevulose Inc Limited Trinidad Strategic Alternative 100

STATEMENTS
Investments
STATEMENTS
Clarien Group Limited Bermuda Holding Company 50.10

Clarien Bank Limited Bermuda Commercial Banking 100
FINANCIAL
First Bermuda Group Limited Bermuda Holding Company 100

FINANCIAL
Onshore Nominees Limited Bermuda Nominee Entity of First 100

Bermuda Group Limited
Offshore Nominees Limited Bermuda Nominee Entity of First 100
Bermuda Group Limited
Clarien Investments Limited (“CIL”) Bermuda Investment Management 100
Clarien Brokerage Limited Bermuda Brokerage Services 100
Clarien Nominees Limited Bermuda Nominee Entity of CIL 100
Clarien Trust Limited Bermuda Trust administration 100
Clarien UK Limited Bermuda Inactive 100
Clarien BSX Services Limited Bermuda Trading member of 100
Bermuda Stock Exchange
*No significant activities at this time
175
Notes to the
September 30, 2020
September 30, 2020
The shareholdings for all subsidiaries are the same as they were in the prior year.
In 2019 the financial position and performance of the Group was affected by the acquisition of a majority stake in
Guardian Holdings Limited (GHL) and the disposal of the entire shareholding in Advantage General Insurance
Company. The recognition of a majority stake in GHL resulted in an increase in assets and liabilities and the
recognition of goodwill and other intangible assets. The details of the transaction are disclosed in Note 54.
The Group’s associates are as follows:

Principal Activities Percentage ownership
RGM Limited Property investment 33.33

Royal Star Holdings Insurance 26.32
STATEMENTS
Dyoll Group Limited In Liquidation 44.47
STATEMENTS
Elite Diagnostic Limited Medical Imaging Services 18.69
Mundo Finance Limited
FINANCIAL
Micro Financing 50.00
FINANCIAL
THE
THE
All of the Group’s associates are incorporated in Jamaica or Trinidad & Tobago.
FINANCIAL
STATEMENTS TOTO
- NOTES
- NOTES
AC C EL ER ATE 176
176
Notes to the
September 30, 2020
September 30, 2020
2. Significant Accounting Policies
(a) Basis of preparation
These financial statements have been prepared in accordance with and comply with International Financial
Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC)
applicable to companies reporting under IFRS and have been prepared under the historical cost convention
as modified by the revaluation of FVOCI securities, derivatives, investment property, certain property, plant
and equipment, defined benefit pension plans where plan assets are measured at fair value and financial
assets and liabilities at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its Judgment in the process of applying the Group’s
accounting policies. Although these estimates are based on management’s best knowledge of current events
and action, actual results could differ from these estimates. The areas involving a higher degree of Judgment
or complexity, or areas where assumptions and estimates are significant to the financial statements are
STATEMENTS
STATEMENTS
disclosed in Note 3.
Standards, interpretations and amendments to existing standards effective during the current year
FINANCIAL
FINANCIAL
Certain new standards, interpretations and amendments to existing standards have been published that
THETHE
became effective during the current financial year. The Group has assessed the relevance of all such new
interpretations and amendments, and has adopted the following, which are relevant to its operations:
TOTO
- NOTES
- NOTES
Amendment to IFRS 9, ‘Financial Instruments’, on prepayment features with negative compensation

STATEMENTS
and modification of financial liabilities (effective for annual periods beginning on or after January 1, 2019
STATEMENTS
(October 1, 2019 for the Group)).This amendment confirmed two points: i.) that reasonable compensation
for prepayments can be both negative or positive cash flows when considering whether a financial asset
solely has cash flows that are principal and interest and ii.) that when a financial liability measured at
FINANCIAL
FINANCIAL
amortised cost is modified without this resulting in de-recognition, a gain or loss should be recognised
immediately in profit or loss. The gain or loss is calculated as the difference between the original contractual
cash flows and the modified cash flows discounted at the original effective interest rate. This means that the
difference cannot be spread over the remaining life of the instrument which may be a change in practice from
IAS 39. There was no significant impact from the adoption of these amendments during the year.
IFRS 16, ‘Leases’, (effective for annual periods beginning on or after January 1, 2019) was issued in
January 2017 and replaces IAS 17, ‘Leases’. The standard introduces a single lessee accounting model
and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months,
unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset
representing its right to use the underlying leased asset and a lease liability representing its obligation to
make lease payments.
IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor
continues to classify its leases as operating leases or finance leases, and to account for those two types
of leases differently. IFRS16 also requires enhanced disclosures to be provided by lessors and lessees
that will improve information provided to users of the financial statements. The impact on the Group of
implementing IFRS 16 is discussed in Notes 57 and 59 to the financial statements.
177
Notes to the
September 30, 2020
September 30, 2020
2. Significant Accounting Policies (Continued)
(a) Basis of preparation (continued)
Standards, interpretations and amendments to existing standards effective during the current year
(continued)
Annual improvements to IFRS 2015-2017 Cycle – Amendments to IFRS 3, (effective for annual periods
beginning on or after January 1, 2019, (October 1, 2019 for the Group)). The amendment to IAS 12, ‘Income
taxes’ clarifies that a group accounts for all income tax consequences of dividend payments in the same
way. The amendment to IAS 23, ‘Borrowing costs’ clarifies that a group treats as part of general borrowings
any borrowing originally made to develop an asset when the asset is ready for its intended use or sale. There
was no significant impact from the adoption of these amendments during the year.
Amendments to IAS 19, ‘Employee benefits’ on plan amendment, curtailment or settlement’, (effective
STATEMENTS
for annual periods beginning on or after January 1, 2019, (October 1, 2019 for the Group)). These
STATEMENTS
amendments require an entity to use updated assumptions to determine current service cost and net interest
for the reminder of the period after a plan amendment, curtailment or settlement. The amendment is
FINANCIAL
recognised in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a
FINANCIAL
surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. There
was no significant impact from the adoption of these amendments during the year.
THE
THE
TOTO
IFRIC 23, ‘Uncertainty over income tax treatments’, (effective for annual periods beginning on or after
- NOTES
- NOTES
January 1, 2019, (October 1, 2019 for the Group)). This Interpretation clarifies how to apply the recognition
and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. An
STATEMENTS
STATEMENTS
uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that
treatment will be accepted by the tax authority. For example, a decision to claim a deduction for a specific
expense or not to include a specific item of income in a tax return is an uncertain tax treatment if its
FINANCIAL
acceptability is uncertain under tax law. IFRIC 23 applies to all aspects of income tax accounting where there
FINANCIAL
is an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of assets
and liabilities, tax losses and credits and tax rates. There was no significant impact from the adoption of this
interpretation during the year.
Standards, amendments and interpretations to existing standards that are not yet effective and
have not been early adopted by the Group
At the date of authorisation of these financial statements, certain new standards, amendments and
interpretations to existing standards have been issued which are not effective at the date of the statement
of financial position, and which the Group has not early adopted.
Amendments to IFRS 3 – definition of a business, (effective for annual periods beginning on or after
January 1, 2020, (October 1, 2020 for the Group)). This amendment revises the definition of a business.
According to feedback received by the IASB, application of the current guidance is commonly thought to
be too complex, and it results in too many transactions qualifying as business combinations.
Amendments to IAS 1 and IAS 8 on the definition of material, (effective for annual periods beginning
on or after 1 January 2020, (1 October 2020 for the Group)). These amendments to IAS 1, ‘Presentation
of financial statements’ and IAS 8, ‘Accounting policies, changes in accounting estimates and errors’, and
consequential amendments to other IFRSs: i) use a consistent definition of materiality throughout IFRSs
and the Conceptual Framework for Financial Reporting; ii) clarify the definition of material; and iii)
incorporate some of the guidance in IAS 1 about material information.
AC C EL ER ATE 178
178
Notes to the
September 30, 2020
September 30, 2020
(a) Basis of preparation (continued)
Standards, amendments and interpretations to existing standards that are not yet effective and
have not been early adopted by the Group (continued)
Amendments to IFRS 9, IAS 39 and IFRS 7 – interest rate benchmark reform, (effective for annual
periods beginning on or after January 1, 2020, (October 1, 2020 for the Group)). These amendments
provide certain reliefs in connection with interest rate benchmark reform. The reliefs relate to hedge
accounting and have the effect that inter-bank offered rate (IBOR) reform should not generally cause
hedge accounting to terminate. However, any hedge effectiveness should continue to be recorded in the
income statement. Given the pervasive nature of hedges involving IBOR based contracts, the reliefs will
affect all companies.
STATEMENTS
Amendments to IFRS 16, ‘Leases’ – COVID-19 related rent recession, (effective for annual periods
STATEMENTS
beginning on or after June 1, 2020). As a result of the coronavirus (COVID-19) pandemic, rent concessions
have been granted to lessees. Such concessions might take a variety of forms, including payment holidays
FINANCIAL
and deferral of lease payments. On May 28, 2020, the IASB published an amendment to IFRS 16 that
FINANCIAL
provides an optional practical expedient for lessees from assessing whether a rent concession related to
COVID-19 is a lease modification. Lessees can elect to account for such rent concessions in the same
THETHE
way as they would if they were not lease modifications. In many cases, this will result in accounting for the
TOTO
concession as variable lease payments in the period(s) in which the event of condition that triggers the
- NOTES
- NOTES
reduced payment occurs.

STATEMENTS
STATEMENTS
Amendments to IFRS 17, ‘Insurance contracts’, (effective for annual periods beginning on or after
January 1, 2023). This standard replaces IFRS 4, which currently permits a wide variety of practices in
accounting for insurance contracts. IFRS 17 will fundamentally change the accounting by all entities that
FINANCIAL
issue insurance contracts and investment contracts with discretionary participation features.
FINANCIAL
Amendments to IAS 1, Presentation of financial statements on classification of liabilities, (effective

for annual periods beginning on or after January 1, 2022). The narrow-scope amendments to
IAS 1, ‘Presentation of financial statements’, clarify that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period. Classification is unaffected
by the expectations of the entity or events after the reporting date (for example, the receipt of a waiver or
a breach of covenant). The amendment also clarifies what IAS 1 means where it refers to the ‘settlement’
of a liability.
Amendments to IFRS 3, IAS 16, IAS 17 and some annual improvements on IFRS 1, IFRS 9, and IFRS
16, (effective for annual periods beginning on or after January 1, 2022). Amendments to IFRS 3, ‘Business
combinations’ update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without
changing the accounting requirements for business combinations. Amendments to IAS 16, ‘Property, plant
and equipment’ prohibit a company from deducting from the cost of property, plant and equipment amounts
received from selling items produced while the company is preparing the asset for its intended use.
Instead, a company will recognise such sales proceeds and related costs in profit or loss. Amendments to
IAS 37, ‘Provisions, contingent liabilities and contingent assets’ specify which costs a company includes
when assessing whether a contract will be loss-making. Annual improvements make minor amendments
to IFRS 1, ‘First-time Adoption of IFRS’, IFRS 9, ‘Financial instruments’, and the illustrative examples
accompanying IFRS 16, ‘Leases’.
179
Notes to the
September 30, 2020
September 30, 2020
(b) Basis of consolidation
Subsidiaries
Subsidiaries are those entities which the Group controls because the Group (i) has power to direct relevant
activities of the entities that significantly affect their returns, (ii) has exposure, or rights, to variable returns
from its involvement with the entities, and (iii) has the ability to use its power over the entities to affect the
amount of the entities’ returns. The existence and effect of substantive rights, including substantive
potential voting rights, are considered when assessing whether the Group has power over another entity.
For a right to be substantive the holder must have practical ability to exercise that right when decisions
about the direction of the relevant activities of the entities need to be made. The Group may have power
over an entity even when it holds no ownership interests in the entity, or when it holds less than a majority
of voting power in an entity. In such cases, the Group exercises Judgment and assesses its power to direct
the relevant activities of the entity, as well as its voting rights relative to the size and dispersion of holdings
of the other vote holders to determine if it has de-facto power over the entity. Protective rights of other
STATEMENTS
STATEMENTS
investors, such as those that relate to fundamental changes in the entity’s activities or apply only in
exceptional circumstances, do not prevent the Group from controlling an entity. Subsidiaries are
consolidated from the date on which control is transferred to the Group and are no longer consolidated
FINANCIAL
from the date that control ceases.
FINANCIAL
The Group uses the acquisition method of accounting to account for business combinations. The
THE
THE
consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the
TOTO
liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the
- NOTES
- NOTES
fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related
costs are expensed as incurred. Identifiable assets and liabilities acquired and contingent liabilities
STATEMENTS
STATEMENTS
assumed in a business combination are measured initially at their fair values at the acquisition date. On
an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
FINANCIAL
FINANCIAL
The excess of the cost of the acquisition, the non-controlling interest recognised and the fair value of any
previously held equity interest in the acquiree, over the fair value of the net identifiable assets acquired is
recorded as goodwill. If there is no excess and there is a shortfall, the Group reassesses the net identifiable
assets acquired. If after reassessment, a shortfall remains, the acquisition is deemed to be a bargain
purchase and the shortfall is recognised in income as a gain on acquisition. Any non- controlling interest
balances represent the equity in a subsidiary not attributable to NCBFG’s stockholders.
Intercompany transactions, balances and unrealised gains and losses on transactions between Group
companies are eliminated. Accounting policies of subsidiaries have been changed, where necessary, to
ensure consistency with the policies adopted by the Group. In the Company’s separate financial
statements, investments in subsidiaries are accounted for at cost less impairment.
Associates
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. The Group’s investments in
associates include goodwill identified on acquisition.
AC C EL ER ATE 180
180
Notes to the
September 30, 2020
September 30, 2020
(b) Basis of consolidation (continued)
Associates (continued)
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the consolidated
income statement, and its share of post-acquisition movements in reserves is recognised in other
comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying
amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest
in the associate, including any other unsecured receivables, the Group does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the associate. Unrealised gains on
transactions between the Group and its associates are eliminated to the extent of the Group’s interest in
the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred.
The Group determines at each reporting date whether there is any objective evidence that investments in
STATEMENTS
STATEMENTS
associates are impaired. If this is the case, the Group recognises an impairment charge in the income
statement for the difference between the recoverable amount of the associate and its carrying value.
FINANCIAL
The results of associates with financial reporting year-ends that are different from the Group are
FINANCIAL
determined by using the results for the most recent audited period as well as the period covered by
management accounts to ensure that a year’s result is accounted for where applicable.
THETHE
TOTO
Investments in associates are accounted for using the equity method of accounting (as described above),
- NOTES
- NOTES
and are initially recognised at cost.

STATEMENTS
STATEMENTS
In the Company’s separate financial statements, investments in associates are accounted for at cost less
impairment.
FINANCIAL
(c) Segment reporting

FINANCIAL
An operating segment is a component of the Group that engages in business activities from which it earns
revenues and incurs expenses and whose operating results are regularly reviewed by the chief operating
decision maker to make decisions about resources to be allocated to the segment. Operating segments
are reported in a manner consistent with the internal reporting to the chief operating decision maker. The
chief operating decision maker is the President and Group Chief Executive Officer.
181
Notes to the
September 30, 2020
September 30, 2020
(d) Foreign currency translation
Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”). The financial
statements are presented in Jamaican dollars (“the presentation currency”), which is the Company’s
functional currency.
Transactions and balances

Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the
transactions. At the date of the statement of financial position, monetary assets and liabilities denominated
in foreign currencies are translated using the closing exchange rate.
STATEMENTS
Exchange differences resulting from the settlement of transactions at rates different from those at the
STATEMENTS
dates of the transactions, and unrealised foreign exchange differences on unsettled foreign currency
monetary assets and liabilities are recognised in the income statement.
FINANCIAL
FINANCIAL
Exchange differences on non-monetary financial assets are a component of the change in their fair value.
Depending on the classification of a non-monetary financial asset, exchange differences are either
THE
recognised in the income statement (applicable for trading securities), or within other comprehensive
THE
income if non-monetary financial assets are classified as FVOCI. In the case of changes in the fair value
TOTO
- NOTES
of monetary assets denominated in foreign currency classified as FVOCI, a distinction is made between
- NOTES
translation differences resulting from changes in amortised cost of the security and other changes in the
carrying amount of the security. Translation differences related to changes in the amortised cost are
STATEMENTS
STATEMENTS
recognised in the income statement, and other changes in the carrying amount, except impairment, are
recognised in other comprehensive income.
FINANCIAL
Group companies
FINANCIAL
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
• Assets and liabilities for each statement of financial position presented are translated at the closing
rate at the date of that statement;
• Income and expenses for each income statement are translated at average exchange rates (unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the dates of the transactions);
and
• All resulting exchange differences are recognised in other comprehensive income and accumulated
as a separate component of equity.
AC C EL ER ATE 182
182
Notes to the
September 30, 2020
September 30, 2020
(e) Revenue recognition
Interest income and expense

Interest income and expense are recognised in the income statement for all interest-bearing instruments
on an accrual basis using the effective interest method based on the actual purchase price. Interest income
includes coupons earned on fixed income investments and accrued discounts on treasury bills and other
discounted instruments.
The effective interest method is a method of calculating the amortised cost of a financial asset or a financial
liability and of allocating the interest income or interest expenses over the relevant period. The effective
interest rate is the rate that exactly discounts the estimated future cash payments or receipts through the
expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount
of the financial asset or financial liability. When calculating the effective interest rate, the Group estimates
cash flows considering the contractual terms of the financial instrument but does not consider future credit
STATEMENTS
STATEMENTS
losses. The calculation includes all fees paid or received between parties to the contract that are an
integral part of the effective interest rate, transaction costs and all other premiums or discounts.
FINANCIAL
The Group accounts for interest income on loans in accordance with Jamaican banking regulations. These
FINANCIAL
regulations stipulate that, where collection of interest is considered doubtful or where the loan is in non-
performing status (payment of principal or interest is outstanding for 90 days or more), interest should be
THETHE
taken into account on the cash basis and all previously accrued but uncollected interest be reversed in the
TOTO
period that collection is doubtful or the loan becomes non-performing. IFRS require that when loans are
- NOTES
- NOTES
impaired, they are written down to their recoverable amounts and interest income is thereafter recognised
by applying the original effective interest rate to the recoverable amount. The difference between the
STATEMENTS
STATEMENTS
regulatory and IFRS bases of interest recognition was assessed to be immaterial.
Fee and commission income

FINANCIAL
Fee and commission income is generally recognised on an accrual basis when the service has been
FINANCIAL
provided. Fees and commissions arising from negotiating or participating in the negotiation of a transaction
for a third party are recognised on completion of the underlying transaction.
Premium income
Premium income is recognised on the accrual basis in accordance with the terms of the underlying
contracts as outlined in Note 2(w).
Dividend income
Dividend income is recognised when the right to receive payment is established.
Rental Income
Rental income is recognised on an accrual basis.
Realised and unrealised investment gains and losses

Realised and unrealised gains and losses on investments measured at amortised cost or fair value through
profit or loss are recognised in the consolidated income statement in the period in which they arise.
Dividend distributions
Dividend distributions to the company’s shareholders are recognised as an appropriation in the Group’s
consolidated financial statements in the period in which the dividends are approved by the Group’s Board
of Directors.
183
Notes to the
September 30, 2020
September 30, 2020
(f) Assets under management

The Group provides custody and trustee discretionary investment management services to third parties.
Such assets under management represent the managed funds administered by the Trust company.
Subscriptions, distributions and redemptions on mutual funds portfolio
Subscriptions - Units relating to the various pools of mutual funds consolidated in the Group's financial
statements could be subscribed based on the net asset value per unit of the underlying funds determined
on each business day.
Distributions - The net income and net realised capital gains of the various pools of mutual funds are
calculated and accrued to the investor daily and distributed monthly. Investors have the option either to
receive a cash distribution or to reinvest income distributions into units at the prevailing subscription price
as at the date of distribution.
STATEMENTS
STATEMENTS
Redemptions - Units relating to the various pools of mutual funds consolidated in the Group's financial
statements are redeemed at a price per unit based on the net asset value of the underlying funds published
FINANCIAL
on the date that the request is made.
FINANCIAL
(g) Income taxes
THE
THE
Taxation expense in the income statement comprises current and deferred income tax charges.
TOTO
- NOTES
- NOTES
Current income tax charges are based on taxable profits for the year, which differ from the profit before
tax reported because it excludes items that are taxable or deductible in other years, and items that are
STATEMENTS
STATEMENTS
never taxable or deductible. The Group’s liability for current tax is calculated at tax rates that have been
enacted or substantively enacted at the date of the statement of financial position.
FINANCIAL
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
FINANCIAL
the tax bases of assets and liabilities and their carrying amounts in the financial statements. Currently
enacted or substantively enacted tax rates are used in the determination of deferred income tax.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and
associates, except where the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is charged or credited in the income statement, except where it relates to items charged or
credited to other comprehensive income or equity, in which case, deferred tax is also dealt with in other
comprehensive income or equity.
(h) Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents comprise balances with less than
90 days maturity from the date of acquisition including cash and balances at Central Banks (excluding
statutory reserves), due from banks, investment securities, reverse repurchase agreements and due to
banks.
AC C EL ER ATE 184
184
Notes to the
September 30, 2020
September 30, 2020
(i) Financial assets
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through OCI or through profit or loss), and
• those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be
recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this
will depend on whether the Group has made an irrevocable election at the time of initial recognition to
account for the equity investment at FVOCI.
Business model assessment

The business models are determined at the level which best reflects how the Group manages portfolios
of assets to achieve business objectives. Judgment is used in determining business models, supported by
STATEMENTS
STATEMENTS
relevant and objective evidence including:

• How the performance and risks of a portfolio of assets are managed, evaluated and reported to key
management and how the managers of the portfolio are compensated;
FINANCIAL
FINANCIAL
• How the Group intends to generate profits from holding the portfolio of assets;
• The past experience on how the cash flows of the portfolio of assets were collected; and
THETHE
• The historical and future expectations of asset sales within a portfolio.

TOTO
- NOTES
The Group reclassifies debt instruments only when its business model for managing those assets changes.
- NOTES
The reclassification takes place from the start of the first reporting period following the change. Such
STATEMENTS
changes are expected to be infrequent.

STATEMENTS
Solely payments of principal and interest (“SPPI”)

Where the business model is to collect or, to collect and sell a financial instrument’s contractual cash flows,
FINANCIAL
FINANCIAL
the Group assesses whether those cash flows represent SPPI. In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending arrangement. Where the
contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending
arrangement, the related financial asset is classified and measured at FVPL. The cash flows of financial
assets which contain an embedded derivative are not disaggregated when determining whether their cash
flows are solely payments of principal and interest but are considered in their entirety. Principal amounts
include par repayments from lending and financing arrangements, and interest primarily relates to basic
lending returns, including compensation for credit risk and the time value of money associated with the
principal amount outstanding over a period of time. Interest can also include other basic lending risks and
costs (for example, liquidity risk, servicing or administrative costs) associated with holding the financial
asset for a period of time, and a profit margin.
Equity instruments
The Group has elected to measure equity holdings that fall under IFRS 9 at FVPL, unless they form part
of a strategic acquisition that is not held for trading purposes.
Debt instruments
The Group classifies portfolios of debt instruments, including hybrid contracts, based on:
(i) the Group’s business model for managing the asset; and
(ii) the cash flow characteristics of the asset.
185
Notes to the
September 30, 2020
September 30, 2020
(i) Financial assets (continued)
Initial recognition
Financial assets and liabilities are recognised when the Group becomes party to a contractual provision
of the instrument. At initial recognition, regular way purchase of financial assets are recorded at fair value.
The carrying value of financial assets at initial recognition includes any directly attributable transaction
costs. Purchases of financial assets are recognised on the date on which the Group becomes the
beneficial owner of the security.
De-recognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or when it transfers the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred, or in which the Group neither transfers nor
STATEMENTS
retains substantially all the risks and rewards of ownership and it does not retain control of the financial
STATEMENTS
asset. Any interest in transferred financial assets that qualify for de-recognition that is created or retained
by the Group is recognised as a separate asset or liability in the consolidated statement of financial
FINANCIAL
position. On de-recognition of a financial asset, the difference between the carrying amount of the asset
FINANCIAL
(or the carrying amount allocated to the portion of the asset transferred), and the sum of (i) the
consideration received (including any new asset obtained less any new liability assumed) and (ii) any
THE
cumulative gain or loss that had been recognised in other comprehensive income (“OCI”) is recognised in
THE
TOTO
profit or loss.
- NOTES
- NOTES
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or
STATEMENTS
expired.
STATEMENTS
Classification of financial assets
Financial assets are measured based on the business model and the resulting classification. As
FINANCIAL
FINANCIAL
required by IFRS 9, the Group applies a principles-based approach to the classification of financial
assets on its business model and the nature of the cash flows of the asset. Financial instruments are
classified as either:
• FVPL
• FVOCI or
• amortised cost
Financial assets measured at fair value through profit and loss (FVPL)
Financial instruments are classified in this category if they meet one of the criteria set out below and are
so designated irrevocably at inception:
• this designation removes or significantly reduces an accounting mismatch; or
• when a group of financial assets and liabilities or a group of financial liabilities is managed and its
performance is evaluated on a fair value basis, in accordance with a documented risk management or
investment strategy, or
• the financial instrument is held for trading purposes.
• The financial instrument is a derivative that is not designated as a hedge.
AC C EL ER ATE 186
186
Notes to the
September 30, 2020
September 30, 2020
Financial assets measured at fair value through other comprehensive income (FVOCI)
Financial assets held for a business model that is achieved by both collecting and selling contractual cash
flows and that contain contractual terms that give rise on specified dates to cash flows that SPPI are
measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition
of impairment gains and losses, interest income and foreign exchange gains and losses which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from equity to profit or loss and recognised in net gains /
(losses) on investment securities. Foreign exchange gains or losses are presented in gain on foreign
currency and investment activities and impairment losses are presented as a separate line item in the
income statement, as credit impairment losses.
Financial assets measured at amortised cost

STATEMENTS
STATEMENTS
Financial assets that are held to collect the contractual cash flows and that contain contractual terms that
give rise on specified dates to cash flows that are SPPI are measured at amortised cost. Any gain or loss
arising on derecognition is recognised directly in profit or loss together with foreign exchange gains or
FINANCIAL
losses in gain on foreign currency and investment activities. Impairment losses are presented as a
FINANCIAL
separate line item in the income statement, as credit impairment losses.

THETHE
Impairment of financial assets

TOTO
Under IFRS 9 the Group applies an impairment model that recognises expected credit losses (“ECL”) on
- NOTES
- NOTES
financial assets measured at amortised cost and FVOCI and off balance sheet loan commitments and
financial guarantees which were previously provided for under IAS 37 Provisions, Contingent Liabilities
STATEMENTS
STATEMENTS
and Contingent Assets.
An allowance (or provision in the case of some loan commitments and financial guarantees) is required
FINANCIAL
for ECL resulting from default events that are possible within the next 12 months (or less, where the
FINANCIAL
remaining life is less than 12 months) (‘12-month ECL’).
In the event of a significant increase in credit risk (SICR) an allowance (or provision) is required for ECL
resulting from all possible default events over the expected life of the financial instrument (‘lifetime ECL’).
Financial assets where 12-month ECL is recognised are considered to be ‘stage 1’; financial assets which
are considered to have experienced a significant increase in credit risk are in ‘stage 2’; and financial assets
for which there is objective evidence of impairment and are therefore considered to be in default or
otherwise credit-impaired are in ‘stage 3’.
To determine whether the life-time credit risk has increased significantly since initial recognition, the Group
considers reasonable and supportable information that is available, including information from the past as
well as forward-looking information. Factors such as whether payments of principal and interest are in
delinquency, an adverse change in credit rating of the borrower and adverse changes in the borrower’s
industry and economic environment are considered in determining whether there has been a significant
increase in the credit risk of the borrower.
Purchased or originated credit-impaired assets (POCI)

Financial assets that are purchased or originated at a deep discount that reflects their incurred credit
losses, are considered to be already credit-impaired on initial recognition. The Group calculates the credit
adjusted effective interest rate, which is based on the originated fair value instead of its gross carrying
amount and incorporates the impact of expected credit losses in estimated future cash flows. The ECL of
these financial assets is always measured on a life time basis and changes in the ECL are recorded in the
Income Statement.
187
Notes to the
September 30, 2020
September 30, 2020
Definition of default
The Group determines that a financial instrument is in default, credit-impaired and in stage 3 by
considering relevant objective evidence, primarily whether:
• contractual payments of either principal or interest are past due for 90 days or more;
• there are other indications that the borrower is unlikely to pay such as that a concession has been
granted to the borrower for economic or legal reasons relating to the borrower’s financial condition; and
• the financial asset is otherwise considered to be in default.
If such unlikeliness to pay is not identified at an earlier stage, it is deemed to occur when an exposure is
greater than 90 days past due.
Write-offs
Financial assets (and the related impairment allowances) are normally written off, either partially or in full,
STATEMENTS
when there is no realistic prospect of recovery. Where loans are secured, write offs generally occur after
STATEMENTS
receipt of any proceeds from the realisation of security. In circumstances where the net realisable value
of any collateral has been determined and there is no reasonable expectation of further recovery, write-off
FINANCIAL
may be earlier.
FINANCIAL
Recognition and Measurement of ECL
THE
The general approach to recognising and measuring ECL reflects:
THE
TOTO
• An unbiased and probability-weighted amount that is determined by evaluating a range of possible
- NOTES
outcomes;
- NOTES
• The time value of money; and
STATEMENTS
• Reasonable and supportable information that is available without undue cost or effort at the reporting
STATEMENTS
date about past events, current conditions and forecasts of future economic conditions.
Expected credit losses are calculated by multiplying the following three main components:
FINANCIAL
FINANCIAL
• The probability of default (“PD”)
• The loss given default (“LGD”) and
• The exposure at default (“EAD”), discounted at the original effective interest rate.
Management has calculated these inputs based on the estimated forward looking economic and historical
experience of the portfolios adjusted for the current point in time. A simplified approach to calculating the
ECL is applied to other receivables which do not contain a significant financing component. Generally,
these receivables are due within 12 months unless there are extenuating circumstances. Under this
approach, an estimate is made of the life-time ECL on initial recognition. For ECL provisions modelled on
a collective basis, a grouping of exposures is performed on the basis of shared risk characteristics, such
that risk exposures within a group are homogeneous.
The PD, LGD and EAD models which support these determinations are reviewed periodically. Therefore,
the underlying models and their calibration, including how they react to forward-looking economic
conditions remain subject to review and refinement. This is particularly relevant for lifetime PDs, and for
the incorporation of scenarios which have not generally been subject to experience gained through stress
testing. The exercise of Judgment in making estimations requires the use of assumptions which are
subjective and sensitive to risk factors, in particular to changes in economic and credit conditions across
geographical areas. Many of the risk factors have a high degree of interdependency and there is no single
factor to which impairment allowances as a whole are sensitive. Therefore, sensitivities are considered in
relation to key portfolios which are particularly sensitive to a few factors and these results are not
extrapolated to the wider population of financial assets.
AC C EL ER ATE 188
188
Notes to the
September 30, 2020
September 30, 2020
The measurement of ECL for each stage and the assessment of significant increases in credit risk consider
information about past events and current conditions as well as reasonable and supportable forecasts of
future events and economic conditions.
For a revolving commitment, the Group includes the current drawn balance plus any further amount that
is expected to be drawn up to the current contractual limit by the time of default, should it occur.
For credit impaired financial assets, based on management’s assessment of the borrower, a specific
provision of expected life-time losses which incorporates collateral and recoveries from other credit-
enhancements recoveries is calculated and recorded as the ECL. The resulting ECL is the difference
between the carrying amount and the present value of expected cash flows discounted at the original
effective interest rate.
STATEMENTS
STATEMENTS
Forward looking information

The estimation and application of forward-looking information requires significant judgment. PD, LGD and
FINANCIAL
EAD inputs used to estimate Stage 1 and Stage 2 credit loss allowances are modelled based on the
FINANCIAL
macroeconomic variables (or changes in macroeconomic variables) that are most closely correlated with
credit losses in the relevant portfolio. Each macroeconomic scenario used in the ECL calculation has
THETHE
forecasts of the relevant macroeconomic variables. The estimation of ECL in Stage 1 and Stage 2 is a
TOTO
discounted probability-weighted estimate that considers a minimum of three future macroeconomic

- NOTES
- NOTES
scenarios. The base case scenario is based on macroeconomic forecasts that are publicly available.
Upside and downside scenarios are set relative to the base case scenario based on reasonably possible
STATEMENTS
STATEMENTS
alternative macroeconomic conditions.
Scenario design, including the identification of additional downside scenarios occurs on at least an annual
FINANCIAL
basis and more frequently if conditions warrant. Scenarios are probability-weighted according to the best
FINANCIAL
estimate of their relative likelihood based on historical frequency and current trends and conditions.
Probability weights are updated on an annual basis or more frequently as warranted. The base scenario
reflects the most likely outcome and is assigned the highest weighting.
The weightings assigned to each economic scenario as at October 1, 2019 and September 30, 2020
vary by jurisdiction and were as follows:
Base Best Case Worst Case
Scenarios 85% 5% 10%
ECL on financial assets measured at amortised cost and FVOCI, are recognised in the income statement.
For FVOCI financial assets, there is a corresponding adjustment to OCI, while for financial assets
measured at amortised cost, the ECL is adjusted against the carrying amount of the asset. Unrealised
gains and losses arising from changes in fair value on FVOCI assets are measured in other comprehensive
income. For FVOCI assets, when the asset is sold, the cumulative gain or loss in OCI (including ECL there
recognised) is reclassified to investment income in determining the gain or loss on disposal.
189
Notes to the
September 30, 2020
September 30, 2020
Modification of loans
The Group sometimes renegotiates or otherwise modifies the contractual cash flows of loans to customers
and debt instruments. When this happens, the Group assesses whether or not the new terms are
substantially different to the original terms. The Group does this by considering, among others, the
following factors:
• If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash
flow to amounts the borrower is expected to be able to pay.
• Whether any substantial new terms are introduced, such as a profit share/equity-based return that
substantially affects the risk profile of the loan.
• Significant extension of the loan term when the borrower is not in financial difficulty.
• Significant change in the interest rate.
STATEMENTS
• Change in the currency the loan is denominated in.
STATEMENTS
• Insertion of collateral, other security or credit enhancements that significantly affect the credit risk
associated with the loan.
FINANCIAL
FINANCIAL
If the terms are substantially different, the Group derecognises the original financial asset and recognises
a new asset at fair value and recalculates the new effective interest rate for the asset. The date of
THE
negotiation is consequently considered to be the date of initial recognition for impairment calculation
THE
TOTO
purposes and the purpose of determining if there has been a significant increase in credit risk. At this point
- NOTES
the Group will assess if the asset is POCI.
- NOTES
STATEMENTS
Acceptance, guarantees, indemnities, letters of credit and undertakings
STATEMENTS
Financial guarantee contracts are contracts that require the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due, in
accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial
FINANCIAL
FINANCIAL
institutions and others on behalf of customers to secure loans, overdrafts and other banking facilities.
Financial guarantee contracts are initially measured at fair value and subsequently measured at the higher
of:
• The amount of the loss allowance; and

• The premium received on initial recognition less income recognised in accordance with the principles
of IFRS 15
Loan commitments provided by the Group are measured as the amount net of loss allowance for the
portfolio. The Group has not provided any commitment to provide loans at a below-market interest rate, or
that can be settled net in cash or by delivering or issuing another financial instrument.
For loan commitments and financial guarantee contracts, the loss allowance is recognised as a provision.
However, for contracts that include both a loan and an undrawn commitment and the Group cannot
separately identify the excepted credit losses on the undrawn commitment component from those on the
loan component, the expected credit losses on the undrawn commitment are recognised together with the
loss allowance for the loan. To the extent that the combined expected credit losses exceed the gross
carrying amount of the loan, the ECL is recognised as a provision.
AC C EL ER ATE 190
190
Notes to the
September 30, 2020
September 30, 2020
(j) Derivative financial instruments

Derivatives are financial instruments that derive their value from the price of underlying items such as
equities, bonds, interest rates, foreign exchange, credit spreads, commodities or other indices. Derivatives
enable users to increase, reduce or alter exposure to credit or market risk. The Group transacts derivatives
to manage its own exposure to interest rate and foreign exchange risk.
Derivative instruments are initially recognised at fair value on the date a derivative contract is entered into,
and subsequently are re-measured at their fair value at the date of each statement of financial position.
Fair values are obtained from quoted market prices and discounted cash flow models as appropriate.
Derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
Assets and liabilities are set off where the contracts are with the same counterparty, a legal right of set off
exists and the cash flows are intended to be settled on a net basis.
Gains and losses from changes in the fair value of derivatives are included in the income statement.
STATEMENTS
STATEMENTS
(k) Repurchase and reverse repurchase transactions

Securities sold under agreements to repurchase (repurchase agreements) and securities purchased under
FINANCIAL
agreements to resell (reverse repurchase agreements) are treated as collateralised financing transactions.
FINANCIAL
The difference between the sale/purchase and repurchase/resale price is treated as interest and accrued
over the life of the agreements using the effective yield method.
FINANCIAL
STATEMENTS - NOTES
- NOTES THETHE
TOTO
191
Notes to the
September 30, 2020
September 30, 2020
(l) Loans and advances and provisions for credit losses

Loans and advances are recognised when cash is advanced to borrowers. They are initially recorded at fair
value and subsequently measured at amortised cost using the effective interest rate method.
Provision for credit losses determined under the Bank of Jamaica (BOJ) regulatory requirements
The effect of the provision for credit losses determined under the BOJ regulatory requirements is to preserve
capital. No amounts are booked to the income statement in respect of regulatory provisions. Provisions
calculated based on regulatory requirements that exceed the amounts required under IFRS are transferred
from retained earnings to a non-distributable loan loss reserve in stockholders’ equity.
The provision for credit losses determined under the BOJ regulatory requirements comprises a “specific
provision” and a “general provision”. The specific is determined based on each specific loan for which
problems have been identified. The general provision is considered to be prudential in nature and is
STATEMENTS
established to absorb portfolio losses.
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
- NOTES
STATEMENTS THE
THE
TOTO STATEMENTS
FINANCIAL
FINANCIAL
AC C EL ER ATE 192
192
Notes to the
September 30, 2020
September 30, 2020
(l) Loans and advances and provisions for credit losses (continued)
Provision for credit losses determined under the Bank of Jamaica (BOJ) regulatory requirements
(continued)
The specific provision is established for the estimated net loss for all non-performing loans and performing
loans that meet specified criteria. Loans are considered to be non-performing where a principal or interest
payment is contractually 90 days or more in arrears. At the time of classification as non-performing, any
interest that is contractually due but in arrears is reversed from the income statement and interest is thereafter
recognised in the income statement on the cash basis only. The estimated net loss is defined as the net
exposure remaining after deducting the estimated net realisable value of the collateral (as defined by and
determined by the regulations) from the outstanding principal balance of the loan. The regulations quantify
the specific provision at ranges from 20% to 100% of each non-performing loan depending on the length of
time the loan has been in arrears. In addition, where a non-performing loan is fully secured but the collateral
is unrealised for a period of 12 months, a provision of 50% of the amounts outstanding should be made.
STATEMENTS
STATEMENTS
Where the collateral is unrealised for a further 6 months (with limited exceptions which allow for up to a
further 15 months) a full provision is made. The regulations further require that the specific provision for each
loan should not be less than 1% of the amounts outstanding.
FINANCIAL
FINANCIAL
A general provision is established for all loans (other than loans for which specific provisions were
THETHE
established) at 1% of the amounts outstanding.

TOTO
- NOTES
(m) Investment securities

- NOTES
All purchases and sales of investment securities are recognised at settlement date.
STATEMENTS
STATEMENTS
Investment securities are classified into the following categories: investment securities at FVPL, AFS
securities and loans and receivables (LAR). Management determines the classification of its investments
at initial recognition and re-evaluates this designation at every reporting date.
FINANCIAL
FINANCIAL
Investment securities at FVPL are those which were either acquired for generating a profit from short-term
fluctuations in price or dealer’s margin, or are securities included in a portfolio in which a pattern of short-
term profit-taking exists or those financial assets that the entity upon initial recognition, designates as
FVPL. They are initially recognised at fair value and transaction costs are expensed in the income
statement. They are subsequently carried at fair value. Interest income on investment securities at FVPL
is recognised as part of interest income in the income statement. All other realised and unrealised gains
and losses are included in gain on foreign currency and investment activities in the income statement.
AFS securities are those intended to be held for an indefinite period of time and which may be sold in
response to needs for liquidity, changes in interest rates, foreign exchange rates or market prices. They
are initially recognised at fair value (including transaction costs), and subsequently remeasured at fair
value. Unrealised gains and losses arising from changes in fair value of AFS securities are recognised in
OCI. When the securities are disposed of or impaired, the related accumulated unrealised gains or losses
included in OCI are transferred to the income statement.
193
Notes to the
September 30, 2020
September 30, 2020
(m) Investment securities (continued)

LAR are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market other than: (i) those financial assets that the Group intends to sell immediately or in the short
term, which are classified as FVPL, or (ii) those financial assets that the entity upon initial recognition,
designates as at FVPL or has designated as AFS. LAR are initially measured at fair value which is the
consideration to originate the loan and are subsequently carried at amortised cost using the effective interest
method.
The fair values of quoted investments in active markets are based on current bid prices. If there is no
active market for a financial asset, the Group establishes fair value using valuation techniques. These
include the use of recent arm’s length transactions, discounted cash flow analysis and other valuation
techniques commonly used by market participants.
Financial assets are assessed at each date of the statement of financial position for objective evidence of
STATEMENTS
STATEMENTS
impairment. A financial asset is considered impaired if its carrying amount exceeds its estimated
recoverable amount. The amount of the impairment loss for assets carried at amortised cost is calculated
as the difference between the asset’s carrying amount and the present value of expected future cash flows
FINANCIAL
discounted at the original effective interest rate. The recoverable amount of a financial asset carried at fair
FINANCIAL
value is the present value of expected future cash flows discounted at the current market interest rate for
a similar financial asset.
TOTO
- NOTES THE
THE
In the case of equity securities classified as AFS, a significant or prolonged decline in the fair value below
- NOTES
cost is considered an indicator of impairment. Significant or prolonged are assessed based on market
conditions and other indicators. If any such evidence exists for AFS financial assets, the cumulative loss,
STATEMENTS
STATEMENTS
measured as the difference between the acquisition cost and the current fair value, less any impairment
losses previously recognised in the income statement, is removed from other comprehensive income and
recognised in the income statement.
FINANCIAL
FINANCIAL
Investment securities are derecognised when the contractual rights to receive the cash flows from these
assets have ceased to exist or the assets have been transferred and substantially all the risks and rewards
of ownership of the assets are also transferred (if substantially all the risks and rewards have not been
transferred, the Group tests control to ensure that continuing involvement on the basis of any retained
powers of control does not prevent derecognition).
(n) Investment properties

Investment property is held for long-term rental yields and is, therefore, treated as a long-term investment.
Investment property is measured initially at cost, including transaction costs, and is subsequently carried
at fair value, representing open market value determined annually by the directors or by independent
valuators. Changes in fair values are recorded in the income statement.
AC C EL ER ATE 194
194
Notes to the
September 30, 2020
September 30, 2020
(o) Intangible assets
(i) Goodwill
Goodwill arises on the acquisition of subsidiaries or associates and represents the excess of the
consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
identifiable net assets acquired. If the total of consideration transferred, non-controlling interest
recognised and previously held interest measured at fair value is less than the fair value of the net
assets of the subsidiary acquired, negative goodwill, in the case of a bargain purchase, the difference
is recognised directly in the income statement.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to
each of the Cash Generating Unit (CGUs), or groups of CGUs, that is expected to benefit from the
synergies of the combination. Each unit or group of units to which the goodwill is allocated represents
STATEMENTS
STATEMENTS
the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at the operating segment level.
FINANCIAL
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in
FINANCIAL
circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill
is compared to the recoverable amount, which is the higher of value in use and the fair value less
THETHE
costs of disposal. Any impairment is recognised immediately as an expense and is not subsequently
TOTO
reversed.
- NOTES
- NOTES
(ii) Contractual customer and distribution relationships, trade name, mutual fund and renewal
STATEMENTS
STATEMENTS
rights
These assets are associated with the acquisition of a subsidiary and are measured at fair value as at
the date of acquisition. These assets are amortised using the straight line method over their useful
FINANCIAL
lives, not exceeding a period of twenty years.

FINANCIAL
(iii) Computer software

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are amortised over their expected useful life of three
years.
Costs that are directly associated with the production of identifiable and unique software products
controlled by the Group, and that will probably generate benefits exceeding costs beyond one year, are
recognised as intangible assets. Direct costs include the software development team’s employee costs
and an appropriate portion of relevant overheads. All other costs associated with developing or
maintaining computer software programmes are recognised as an expense as incurred.
Intangible assets with indefinite useful lives are assessed for impairment annually, or more frequently if
events changed in circumstances indicate a potential impairment.
195
Notes to the
September 30, 2020
September 30, 2020
(p) Property, plant and equipment

Land and buildings are shown at deemed cost less impairment losses, and less subsequent depreciation for
buildings. All other property, plant and equipment are stated at historical cost less accumulated depreciation
and impairment losses.
Subsequent costs are included in the asset’s carrying amount or are recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are
charged to other operating expenses during the financial period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated on the straight-line basis, unless
otherwise stated, at annual rates that will write off the carrying value of each asset over the period of its
expected useful life. Annual depreciation rates or periods over which depreciation is charged are as follows:
STATEMENTS
STATEMENTS
Freehold Buildings & Leasehold improvements 2% & Period of lease
Motor Vehicles, Furniture & Equipment 5% - 33 1/3%
Leased assets Shorter of period of lease or useful life of asset
FINANCIAL
FINANCIAL
Gains or losses on disposals are determined by comparing proceeds with carrying amount. These are
THE
included in other operating income in the income statement.
THE
TOTO
- NOTES
(q) Properties for development and re-sale
- NOTES
Properties for sale or under construction that are intended for sale, are classified as properties for
STATEMENTS
development and sale. These balances are carried at the lower of cost and net realisable values. These
STATEMENTS
properties include offices, retail shops and residential units. Net realisable value is the estimated selling price
in the ordinary course of business, less estimated costs of completion and estimated selling expenses. An
FINANCIAL
external valuation specialist was engaged in determining the net realisable value for the office and retail
FINANCIAL
shops, and a discounted cash flow model was used as there is a lack of comparable data because of the
nature of the properties. For the residential units, data from binding sales transactions are used to assess
the net realisable value. Impairment losses on properties for development and sale are recognised in the
consolidated statement of income when the net realisable value is lower than cost. Subsequently, where cost
is less than the net realisable value, a reversal of any prior impairment losses is recognised in the
consolidated statement of income.
(r) Impairment of long lived assets

Property, plant and equipment and intangibles are reviewed for impairment losses whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset’s net selling price and value in use. For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows.
AC C EL ER ATE 196
196
Notes to the
September 30, 2020
September 30, 2020
(s) Financial liabilities

The Group’s financial liabilities comprise primarily amounts due to banks, customer deposits, repurchase
agreements, obligations under securitisation arrangements, other borrowed funds, liabilities under annuity
and insurance contracts, liabilities under letters of credit and undertaking and other liabilities.
The recognition and measurement of liabilities under annuity and insurance contracts is detailed in Note 2(t);
short term liabilities FVTPL are measured at fair value and other financial liabilities are measured at
amortised cost.
Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis, or realise the assets and settle the liabilities simultaneously.
STATEMENTS
STATEMENTS
(t) Borrowings
Borrowings, including those arising under securitisation arrangements, are recognised initially at fair value,
being their issue proceeds, net of transaction costs incurred. Subsequently, borrowings are stated at
FINANCIAL
amortised cost and any difference between net proceeds and the redemption value is recognised in the
FINANCIAL
income statement over the period of the borrowings using the effective yield method.
THETHE
(u) Structured products

TOTO
Structured products are recognised initially at the nominal amount when funds are received. Derivatives
- NOTES
- NOTES
are separately accounted for at FVPL (Note 19). The non-derivative elements are stated at amortised cost
using the effective interest method.
FINANCIAL
STATEMENTS
197
Notes to the
September 30, 2020
September 30, 2020
(v) Leases
The Group has changed its accounting policy for leases where the Group is the lessee. The new policy, and
the impact of the change are described in Note 57.
Accounting policies applied from October 1, 2019

As lessee
The Group leases various buildings and equipment. Rental contracts are typically made for fixed periods
of 1-10 years but may have extension options as described below.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in
the contract to the lease and non-lease components based on their relative stand-alone prices. However,
for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-lease
components and instead accounts for these as a single lease component.
STATEMENTS
STATEMENTS
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants other than the security interests in the
leased assets that are held by the lessor. Leased assets may not be used as security for borrowing
FINANCIAL
purposes.
FINANCIAL
Until the 2019 financial year, leases of property, plant and equipment were classified as either finance
THE
THE
leases or operating leases. From 1 October 2019, leases are recognised as a right-of-use asset and a
TOTO
corresponding liability at the date at which the leased asset is available for use by the Group.
- NOTES
- NOTES
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
STATEMENTS
STATEMENTS
include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payments that are based on an index or a rate, initially measured using the index
FINANCIAL
or rate as at the commencement date
FINANCIAL
• amounts expected to be payable by the Group under residual value guarantees
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option,
and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising
that option.
The right-of-use assets is presented within property, plant and equipment. Right-of-use assets are measured
initially at cost comprising the following:
• the amount of the initial measurement of the lease liability;
• any lease payments made at or before the commencement date less any lease incentive received;
• any initial direct costs; and
• restoration costs.
Subsequently the right-of-use assets are measured at cost less accumulated depreciation and any
accumulated impairment losses are adjusted for remeasurement of the lease liability due to reassessment
or lease modifications.
The right of use assets is depreciated over the shorter of the asset’s useful life and the lease term on a
straight-line basis. The amortisation period for the right-of-use assets is 1 to 10 years.
AC C EL ER ATE 198
198
Notes to the
September 30, 2020
September 30, 2020
(v) Leases (continued)

Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability. The lease payments are discounted using the lessee’s incremental borrowing
rates, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions.
Short-term leases are leases with a lease term of 12 months or less.
Low-value assets comprise computers, tablets, mobile phones and small items of office furniture.
Accounting policies applied until September 30, 2019
As lessee
STATEMENTS
STATEMENTS
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of
ownership, are classified as finance leases. Finance leases are recognised at the inception of the leases at
the lower of the fair value of the leased asset or the present value of minimum lease payments. Each lease
FINANCIAL
payment is allocated between the liability and interest charges so as to produce a constant rate of charge on
FINANCIAL
the lease obligation. The interest element of the lease payments is charged to the income statement over
the lease period.
THETHE
TOTO
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
- NOTES
- NOTES
classified as operating leases. Payments under operating leases are charged in the income statement on a
straight-line basis over the period of the lease.
STATEMENTS
STATEMENTS
When an operating lease is terminated before the lease period has expired, any payment required to be
made to the lessor by way of penalty is recognised as an expense in the period in which termination takes
FINANCIAL
place.
FINANCIAL
The Group did not need to make any adjustments to the accounting for assets held as lessor as a result of
adopting the new leasing standard.
As lessor
When assets are leased out under a finance lease, the present value of the lease payments is recognised
as a receivable. The difference between the gross receivable and the present value of the receivable is
recognised as unearned finance income. Lease income is recognised over the term of the lease in a manner
which reflects a constant periodic rate of return on the net investment in the lease.
Assets leased out under operating leases are included in property, plant and equipment in the statement of
financial position. They are depreciated over their expected useful lives on a basis consistent with similar
owned assets. Rental income is recognised on a straight-line basis over the lease term.
199
Notes to the
September 30, 2020
September 30, 2020
(w) Insurance and investment contracts – classification, recognition and measurement
Classification
The Group issues contracts that transfer insurance risk or financial risk or both. Insurance contracts are
those contracts that transfer significant insurance risk. Such contracts may also transfer financial risk. As
a general guideline, the Group defines as significant insurance risk the possibility of having to pay benefits
on the occurrence of an insured event that are at least 10% more than the benefits payable if the insured
event did not occur.
Investment contracts are those contracts that transfer financial risk with no significant insurance risk.
Recognition and measurement

Insurance contracts are classified depending on the duration of risk and whether or not the terms and
conditions are fixed.
STATEMENTS
STATEMENTS
Short duration insurance contracts
These contracts are principally property, motor, casualty (employers’ liability, public liability), and group
FINANCIAL
life and health insurance contracts.
FINANCIAL
Property insurance contracts indemnify the Group’s customers in the event of a loss from a specified
THE
insured peril such as fire, windstorm or earthquake (not limited to these perils) up to the insured amount
THE
TOTO
and within the terms of the policy conditions. These contracts are issued for both private and commercial
- NOTES
risks. Customers who undertake commercial activities on their premises could also receive compensation
- NOTES
for consequential loss/business interruption caused by the insured perils.
STATEMENTS
STATEMENTS
Motor insurance contracts indemnify the Group’s customers for their legal requirement under the road
traffic legislation in the countries where the Group has issued these contracts. These contracts may be
extended for additional coverage such as physical damage, theft and personal accident.
FINANCIAL
FINANCIAL
Casualty insurance contracts provide coverage for liability exposures that indemnify the Group’s
customers against actions from third parties which are subject to the policy limits and conditions. The
typical protection offered is designed for employers who become legally liable to pay compensation to
injured employees (employers’ liability) and employers who become liable to pay compensation to third
parties for bodily harm or property damage (public liability).
Marine insurance contracts indemnify the Group’s customers for loss or damage to their insured cargo,
commercial hull and pleasure craft vessels. Third party coverage is also provided.
Group life contracts protect the Group’s customers from the consequences of events (such as death or
critical illness) that would affect the ability of the customer or his/her dependants to maintain his/her current
level of income.
Health insurance contracts provide for both unexpected and preventative medical treatment and drugs.
On these contracts, the benefits paid on occurrence of the specified insurance event are either fixed or
linked to the extent of the economic loss suffered by the policyholder. There are no maturity or surrender
benefits.
For all these contracts, premiums are recognised as revenue (earned premiums) proportionally over the
period of coverage. The portion of premiums received on inforce contracts that relate to unexpired risks at
the date of the statement of financial position is reported as an unearned premium liability. Premiums are
shown before deduction of commissions payable to agents and brokers and exclude any taxes or duties
levied on such premiums. Premium income includes premiums collected by agents and brokers not yet
received by the Group.
AC C EL ER ATE 200
200
Notes to the
September 30, 2020
September 30, 2020
(w) Insurance and investment contracts – classification, recognition and measurement (continued)
Recognition and measurement (continued)
Short duration insurance contracts (continued)

Unearned premiums represent the portion of premiums written in the current year which relate to periods
of insurance subsequent to the date of the statement of financial position calculated principally using the
twenty-fourths method. Unearned premiums relating to marine cargo are calculated using 180 days after
the first date of sailing. Unearned premiums relating to group life are calculated based on 25% of net
premiums written.
Claims and loss adjustment expenses are charged to income as incurred based on the estimated liability
for compensation owed to contract holders. They arise from events that have occurred up to the date of
the statement of financial position even if they have not yet been reported to the Group. The Group does
STATEMENTS
STATEMENTS
not discount its liabilities for unpaid claims. Liabilities for unpaid claims are estimated using techniques
such as the input of assessments for individual cases reported to the Group and statistical analyses for
the claims incurred but not reported (IBNR), and to estimate the expected ultimate cost of more complex
FINANCIAL
claims that may be affected by external factors such as court decisions. Estimates are continually revised
FINANCIAL
as more information becomes available and for the effects of anticipated inflation. Adjustments arising
from these revisions are recognised within claims expense in the current year.
THETHE
TOTO
Long-term duration insurance contracts

- NOTES
- NOTES
These contracts are traditional participating and non-participating policies that insure events associated
with human life (death, longevity, critical illnesses etc.) over a long duration and include annuity contracts.
STATEMENTS
STATEMENTS
The contracts issued by the Group are organised by broad categories according to the features they
contain. There are three main categories:
FINANCIAL
(1) Long-term insurance contracts with fixed and guaranteed terms and with discretionary participation
FINANCIAL
features (DPF),
(2) Long-term insurance contracts with fixed and guaranteed terms and without DPF and
(3) Long-term insurance contracts without fixed terms.
These categories can be further segregated into “Unit-linked contracts” and “Interest-sensitive contracts”.
The premiums paid for long duration insurance contracts either cover only the insured event, or they may
comprise a portion that covers the insured event, and another portion to accumulate cash values available
for withdrawal at the option of the policyholder. These cash values are increased by credited interest and
decreased by policy administration fees, surrender charges and any withdrawals.
Revenue consists of fees deducted for policy administration, mortality and surrenders and interest credited
is treated as an expense. Some of these contracts contain guarantees that entitle the holders to a minimum
guaranteed crediting rate over the life of the policy. These guarantees are allowed for in the liability
calculations. The interest credited to Unit-linked contracts are determined by reference to specific and
separately identifiable pools of assets.
201
Notes to the
September 30, 2020
September 30, 2020
Long-term duration insurance contracts (continued)
Long-term insurance contracts with fixed and guaranteed terms and with DPF
Insurance contracts may or may not contain DPF, which entitles the policyholder to receive, as a
supplement to guaranteed benefits, additional benefits or bonuses:
a) That are likely to be a significant portion of the total contractual benefits;
b) Whose amount or timing is contractually at the discretion of the Group; and
c) That are contractually based on:
(i) The performance of a specified pool of contracts or a specified type of contract;
(ii) realised and/or unrealised investment returns on a specified pool of assets held by the Group; or
STATEMENTS
STATEMENTS
(iii) the profit or loss of the Group, fund or other entity that issues the contract.
The terms and conditions of these contracts set out the basis for the determination of discretionary benefits
FINANCIAL
and within which the Group may exercise its discretion as to the quantum and timing of their payments to
FINANCIAL
contract holders, which will be subject to actuarial advice.
THE
THE
Long-term insurance contracts with fixed and guaranteed terms and without DPF
TOTO
These contracts do not contain features that provide additional benefits outside of those guaranteed at
- NOTES
- NOTES
inception.
STATEMENTS
STATEMENTS
Long-term insurance contracts without fixed terms
These contracts prescribe no fixed terms or contain variable terms that have a material effect on the
amount, timing, and uncertainty of the insurer's future cash flows.
FINANCIAL
FINANCIAL
Insurance liabilities
A liability for policyholders’ benefits that is expected to be incurred in the future is recorded when the
premiums are recognised. Typically, the liability is determined as the sum of the expected discounted
value of the benefit payments less the expected discounted value of the theoretical premiums that would
be required to meet the benefits based on the valuation assumptions used (the valuation premiums). In
particular, the liability is based on assumptions as to mortality and investment income. A margin for
adverse deviations is included in the assumptions.
AC C EL ER ATE 202
202
Notes to the
September 30, 2020
September 30, 2020
Long-term duration insurance contracts (continued)
Insurance liabilities (continued)

Long duration insurance contract liabilities are calculated by independent actuaries at each statement of
financial position date using the varying methods, each prescribed by the regulators in the respective
jurisdictions. The change in these liabilities are recognised in the income statement.
For the Trinidad and Tobago life insurance subsidiaries, actuarial liabilities are calculated using the
Caribbean Policyholder Premium Method (CPPM) outlined in draft regulations issued by the Central Bank
of Trinidad and Tobago. The Jamaican life insurance subsidiaries use a very similar Policyholder Premium
STATEMENTS
STATEMENTS
Method (PPM) as required under the Insurance Act 2001 of Jamaica. For the Dutch Caribbean life
insurance subsidiaries, reserves are calculated on a Modified Net Premium Method in accordance with
the requirements of the Central Bank of Curacao and St. Maarten and the Central Bank of Aruba.
FINANCIAL
FINANCIAL
Premiums
Premiums are shown before deduction of commission and are recognised as revenue when they become
THETHE
payable by the policyholder except for the following:

TOTO
(a) A Jamaican life insurance subsidiary issues policies classified as Unit-linked long-term contracts
- NOTES
- NOTES
with fixed and guaranteed terms without DPF, for which the investment component of the premiums is
recognised as liabilities. The insurance component of the premiums is recognised as income.
STATEMENTS
STATEMENTS
(b) A Jamaican life insurance subsidiary issues policies classified as Interest sensitive long-term
contracts without fixed terms, for which the investment component of premiums is recognised as liabilities.
The insurance component of the premiums is recognised as income.
FINANCIAL
FINANCIAL
Investment contracts
The Group issues investment contracts including deposit administration contracts. Premiums under these
contracts are recognised directly as liabilities. These liabilities are increased by credited interest or change
in the unit prices and are decreased by policy administration fees, mortality and surrender charges and
any withdrawals. Revenue consists of investment income and interest credited is treated as an expense.
Unit Linked Contracts

Unit-Linked funds represent funds maintained to meet specific investment objectives of policyholders who
bear investment risk. The returns earned by investment of the funds, inclusive of realised and unrealised
gains and losses accrue directly to the policyholders.
For the unit-linked contracts, the portion of the premium covering the insured risk is recorded as premium
income. The portion of the premium which accumulates to cash value for the policyholder is unbundled
and recorded as a liability and credited to the account of the policyholder in the respective unit-linked fund
to which the contract is linked.
The liabilities arising from the unit-linked contracts comprise the liability for the insured risk and the
accumulated cash value. The liability for the insurance risk is determined in a manner identical to the
liability for contracts with fixed and guaranteed terms and is included in the policyholders’ liability balance
while the liability for the accumulated cash value is carried at fair value and is determined by reference to
the fair value of the assets which fund the liabilities.
203
Notes to the
September 30, 2020
September 30, 2020
Recognition and measurement (continued
Unit Linked Contracts (Continued)

The assets and liabilities of the segregated funds are carried at fair values. Deposits and withdrawals are
charged or are credited to the segregated fund liabilities. Unit values are determined by dividing the value
of the assets in the funds on a valuation date by the number of units in the funds on the valuation date.
The Group earns fees for the management of the funds assets, policy administration, as well as for
effecting the encashment of units.
Outstanding claims
Provision for outstanding claims and the related costs of settlement are based on incidents reported before
the end of the financial year and include appropriate provisions for claims incurred but not yet reported.
STATEMENTS
STATEMENTS
Estimates are continually revised as more information becomes available and for the effects of anticipated
inflation. Adjustments arising on these revisions are included with claims expense in the current year.
Benefits and claims payable represent the gross cost of all claims notified but not settled on the date of
FINANCIAL
the statement of financial position. Any reinsurance recoverable is shown separately as a receivable.
FINANCIAL
Policyholders’ benefits
THE
THE
Maturities and annuities are accounted for when due. Death and disability claims and surrenders are
TOTO
recognised in the financial statements in the year in which they have been notified. Differences between
- NOTES
- NOTES
the estimated claims and subsequent settlements are recognised in the income statement in the year of
settlement.
STATEMENTS
STATEMENTS
Liability adequacy test
At the date of the statement of financial position, the Group assesses whether its recognised insurance
FINANCIAL
liabilities are adequate, using current estimates of future cash flows under its insurance contracts. If that
FINANCIAL
assessment shows that the carrying amount of its insurance liabilities is inadequate, the deficiency is
recognised in the income statement and the amount of the relevant insurance liabilities is increased.
Reinsurance contracts held

Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on
one or more contracts issued by the Group and that meet the classification requirements for insurance
contracts are classified as reinsurance contracts held. Contracts that do not meet these classification
requirements are classified as financial assets.
The benefits to which the Group is entitled under its reinsurance contracts held are recognised as
reinsurance assets. These assets consist of short-term balances due from reinsurers, as well as longer
term receivables that are dependent on the expected claims and benefits arising under the related
reinsured insurance contracts. Amounts recoverable from or due to reinsurers are measured consistently
with the amounts associated with the reinsured insurance contracts and in accordance with the terms of
each reinsurance contract. Reinsurance liabilities are primarily premiums payable for reinsurance
contracts and are recognised as an expense when due.
The Group periodically assesses its reinsurance assets for impairment. If there is objective evidence that
a reinsurance asset is impaired, the Group reduces the carrying amount of the reinsurance asset to its
recoverable amount and recognises that impairment loss in the consolidated income statement.
AC C EL ER ATE 204
204
Notes to the
September 30, 2020
September 30, 2020
Receivables and payables related to insurance contracts and investment contracts

Receivables and payables are recognised when due. These include amounts due to and from agents,
brokers and insurance contract holders. If there is objective evidence that the insurance receivable is
impaired, the Group reduces the carrying amount of the insurance receivable accordingly and recognises
that impairment loss in the consolidated income statement.
Salvage and subrogation reimbursements

Some insurance contracts permit the Group to sell (usually damaged) property acquired in settling a claim
(salvage). The Group may also have the right to pursue third parties for payment of some or all costs
(subrogation). The estimated cost of claims includes a deduction for the expected value of salvage and
other recoveries.
STATEMENTS
STATEMENTS
(x) Provisions
Provisions are recognised when there is a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of
FINANCIAL
the amount of the obligation can be made.

FINANCIAL
(y) Post-employment benefits

THETHE
TOTO
- NOTES
Pension benefits
- NOTES
The Group and its subsidiaries operate a number of retirement plans, the assets of which are generally
held in separate trustee administered funds. The pension plans are funded by payments from employees
STATEMENTS
STATEMENTS
and by the relevant companies, taking into account the recommendations of independent qualified
actuaries. The Group has both defined benefit and defined contribution plans.
FINANCIAL
Defined benefit pension plans

FINANCIAL
A defined benefit pension plan is a plan that defines an amount of pension benefit that an employee will
receive on retirement, usually dependent on one or more factors, such as age, years of service and
compensation.
The amount recognised in the statement of financial position in respect of defined benefit pension plans is
the present value of the defined benefit obligation at the statement of financial position date less the fair
value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates on sovereign and corporate bonds that
are denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating to the terms of the related pension obligation.
The current service cost of the defined benefit plan, included in staff costs in the income statement, reflects
the increase in the defined benefit obligation resulting from employee service in the current year, benefit
changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. The cost is included in staff costs in the income statement.
Past-service costs are recognised immediately in expenses.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive income in the period in which they arise.
205
Notes to the
September 30, 2020
September 30, 2020
(y) Post-employment benefits (continued)
Pension benefits (continued)
Defined contribution pension plans

A defined contribution pension plan is a plan under which the Group pays fixed contributions into a
separate fund. The Group has no legal or constructive obligations to pay further contributions. The
contributions are charged to the income statement in the period to which they relate.
Other post-employment benefit obligations

The Group provides post-employment health care benefits to its retirees. The entitlement to these benefits
is usually conditional on the employee remaining in service up to retirement age and the completion of a
minimum service period. The expected costs of these benefits are accrued over the period of employment
using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and
STATEMENTS
STATEMENTS
losses arising from experience adjustments and changes in actuarial assumptions are charged or credited
in other comprehensive income in the period in which they arise. These obligations are valued annually
by independent qualified actuaries.
FINANCIAL
FINANCIAL
Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal
THE
THE
retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits.
TOTO
The Group recognises termination benefits when it is demonstrably committed to either terminate the
- NOTES
- NOTES
employment of current employees according to a detailed formal plan without possibility of withdrawal or
to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits
STATEMENTS
STATEMENTS
falling due more than 12 months after the statement of financial position date are discounted to present
value.
FINANCIAL
(z) Acceptances, guarantees, indemnities, letters of credit and undertakings
FINANCIAL
Acceptances, guarantees, indemnities and letters of credit and undertakings are various forms of
contractual commitments to advance funds to or on behalf of customers and include:
(i) Obligations on the part of the Group to make payments (directly or indirectly) to a designated third
party contingent upon a default by the Group’s customer in the performance of an obligation under the
terms of that customer’s contract with the third party; and
(ii) Obligations to guarantee or stand as surety for the benefit of a third party.
Where obligations under acceptances, guarantees, indemnities and letters of credit and undertakings are
not considered to be contingent, the amounts are reported as a liability in the statement of financial
position. There are equal and offsetting claims against customers in the event of a call on these
commitments, which are reported as an asset.
Where obligations are considered to be contingent, the amounts are disclosed in Note 58.
AC C EL ER ATE 206
206
Notes to the
September 30, 2020
September 30, 2020
(aa) Share capital
Share issue costs

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, for the proceeds.
Dividends on ordinary shares

Dividends on ordinary shares are recognised in equity in the period in which they are declared.
Treasury shares
Subject to the applicable laws of the relevant jurisdictions in which the Company, its subsidiaries or
consolidated entities operate, where the Company, its subsidiaries or consolidated entities acquire the
shares of the Company, the consideration paid, including any directly attributable incremental costs (net
of taxes) is deducted from equity attributable to the Company’s stockholders until the shares are cancelled,
STATEMENTS
STATEMENTS
reissued or disposed. Where the shares are subsequently sold or reissued, any consideration received,
net of directly attributable incremental transaction costs and the related income tax effects, are included
in equity attributable to the Company’s stockholders.
FINANCIAL
FINANCIAL
(ab) Fiduciary activities

THETHE
The Group acts as trustee and in other fiduciary capacities that result in holding or placing of assets on behalf
of individuals, trusts, retirement benefit plans and other third parties. These assets and income arising
TOTO
- NOTES
thereon are excluded from these financial statements, as they are not assets of the Group.
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
STATEMENTS
207
Notes to the
September 30, 2020
September 30, 2020
3. Critical Accounting Estimates and Judgments in Applying Accounting Policies
The Group’s financial statements and its financial results are influenced by accounting policies, assumptions,
estimates and management judgment, which necessarily have to be made in the course of preparation of the
financial statements.
The Group makes estimates and assumptions that may affect the reported amounts of assets and liabilities within
the next financial year. All estimates and assumptions required in conformity with IFRS are best estimates
undertaken in accordance with the applicable standard.
Estimates and judgments are continuously evaluated and are based on past experience and other factors,
including expectations with regard to future events. Accounting policies and management’s judgments for certain
items are especially critical for the Group’s results and financial position due to their materiality.
(a) Business combinations
STATEMENTS
Business combinations are accounted for using the acquisition method. The Group determines the
STATEMENTS
identifiable assets and liabilities using the purchase price allocation method. Under this method, the Group
makes estimates about future cash flows which are derived based on factors such as revenue growth,
margins and expense ratios, working capital requirements, attrition rates and discount rates in determining
FINANCIAL
FINANCIAL
the fair values of the identifiable intangible assets. Where a business combination results in the identification
of goodwill, goodwill impairment assessments are done annually. The performance of the goodwill
THE
impairment assessments also requires estimating future cash flows which are derived using factors similar
THE
TOTO
to those used in determining the fair values of the other intangibles discussed above. These estimates are
- NOTES
particularly sensitive to the determined cash flows and the discount rates.
- NOTES
STATEMENTS
In performing step acquisitions (moving from an investment in associated company to a subsidiary and
STATEMENTS
obtaining control), the Group is required to premeasure previously held equity interests (PHEI) to fair value
as part of determining the purchase consideration in doing the purchase price accounting for the entire
controlling stake. For the GHL step acquisition, in determining fair value of its PHEI, the Group determined
FINANCIAL
FINANCIAL
that neither the share price listed on the Trinidad and Tobago Stock Exchange (TTSE) nor the transaction
price for the recently acquired stake were reflective of fair value. The Group considered GHL’s share price
traded on the TTSE on or prior to the transaction date. Based on the Group’s analysis, GHL’s shares are
thinly traded and therefore do not reflect the fair value. GHL’s share price was also influenced by investor’s
knowledge of the potential take-over. The Group also considered the transaction price for the additional
shares to achieve control. The purchase price per share was based on a lock-up agreement entered in
2016 and was not reflective of the fair value as at the purchase date. Management therefore commissioned
an independent valuation of the PHEI, which valuation used estimates about future cash flows, derived
based on factors identical to those described above. These estimates are also particularly sensitive to the
determined cash flows and the discount rates.
AC C EL ER ATE 208
208
Notes to the
September 30, 2020
September 30, 2020
3. Critical Accounting Estimates and Judgments in Applying Accounting Policies (Continued)
(b) Income taxes

There are many transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group recognises liabilities for actual and anticipated tax audit issues based
on estimates of whether additional taxes will be due. In determining these estimates, management considers
the merit of any tax audit issues raised, based on their interpretation of the taxation laws, and their knowledge
of any precedents established by the taxation authorities. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences could materially impact the current
tax and deferred tax provisions in the period in which such determination is made.
(c) Impairment of financial assets

In determining ECL, management is required to exercise Judgment in defining what is considered a
significant increase in credit risk and in making assumptions and estimates to incorporate relevant
information about past events, current conditions and forecasts of economic conditions. Further
information about the Judgments involved is included in the sections 'Measurement of ECL' and 'Forward-
STATEMENTS
STATEMENTS
looking information'.
Establishing staging
FINANCIAL
The Group establishes staging for different categories of financial assets according to the following criteria:
FINANCIAL
Debt securities and Deposits.

THETHE
The Group uses its internal credit rating model to determine which of the three stages an asset is to be
TOTO
- NOTES
categorized for the purposes of ECL. The Group’s internal credit rating model is a scale which allows for
- NOTES
distinctions in risk characteristics and is referenced to the rating scale of international credit rating
agencies. The scale is summarised in the following table:
STATEMENTS
STATEMENTS
Internal Rating Classification External rating –

S&P or equivalent
FINANCIAL
Low Risk Investment AAA – BBB

FINANCIAL
Grade
Medium Risk Non- BB – B
Investment
Grade
High Risk Non- CCC - C
Investment
Grade
Default Default D
For investment securities, once the asset has experienced a significant increase in credit risk the investment
will move from Stage 1 to Stage 2. The Group has assumed that the credit risk of a financial instrument has
not increased significantly since initial recognition if the financial instrument is determined to have low credit
risk at the reporting date. A financial asset that is investment grade is considered low credit risk. Stage 1
instruments are classified as follows:
• investment grade, or
• below investment grade at origination, and have not been downgraded more than 2 notches since
origination.
Stage 2 instruments are assets which:
• have been downgraded from investment grade to below investment grade, or
• are rated below investment grade at origination and have been downgraded more than 2 notches
since origination.
209
Notes to the
September 30, 2020
September 30, 2020
(c) Impairment of financial assets (continued)
Debt securities and Deposits. (continued)
Stage 3 instruments are assets in default where estimated future cash flows have been impacted
negatively.
Other assets measured at amortised cost include, lease receivables, loan commitments and financial
guarantee contracts. The assessment of significant increase in credit risk for these assets requires
significant judgment. Movements between Stage 1 and Stage 2 are based on whether an instrument’s
credit risk at the reporting date has increased significantly relative to the date it was initially recognised. For
the purposes of this assessment, credit risk is based on an instrument’s lifetime PD, not the losses the
Bank expects to incur.
STATEMENTS
STATEMENTS
All loans receive an initial risk rating at origination. The Group has established a credit quality review
process involving analysis of the ability of borrowers and other counterparties to meet interest and capital
repayment obligations based on factors that include days past due (“DPD”), performance and other known
FINANCIAL
material changes. Ratings of individual loans are based on the following criteria:
FINANCIAL
• Credit structure and cash flow stability;
THE
THE
• Specific loan and collateral characteristics;
TOTO
- NOTES
• Guarantees and other credit support;
- NOTES
• Macro-economic factors; and
STATEMENTS
• Financial and management information for commercial loans.
STATEMENTS
This assessment results in each facility being classified as “low risk”, “medium risk” or “high risk”. The Group
considers loans that have missed a full payment cycle, to have experienced a significant increase in credit
FINANCIAL
FINANCIAL
risk. The Bank assesses loans as having experienced a significant increase in credit risk if any other
qualitative indicator is triggered such as, known financial difficulty, credit issue with another account,
expected forbearance or restructuring. If any of these factors indicates that a significant increase in credit
risk has occurred, the instrument is moved from Stage 1 to Stage 2.
The thresholds for movement between Stage 1 and Stage 2 are symmetrical. After a financial asset has
migrated to Stage 2, if its credit risk is no longer considered to have significantly increased relative to its
initial recognition, the financial asset will move back to Stage 1.
Forward looking information

When management determines the macro-economic factors that impact the portfolios of financial assets,
they first determine all readily available information within the relevant market. Portfolios of financial assets
are segregated based on product type, historical performance and homogenous country exposures. There
is often limited timely macro-economic data for Caribbean markets. Management assesses data sources
from local governments, International Monetary Fund and other reliable data sources. A regression analysis
is performed to determine which factors are most closely correlated with the credit losses for each portfolio.
Where projections are available, these are used to forecast up to three years and subsequently the long
term average performance is then used for the remaining life of the product. These projections are
reassessed on an annual basis.
(d) Fair value of investment securities

Management uses its judgment in selecting appropriate valuation techniques to determine fair value of
investment securities. These techniques are described in Note 51.
AC C EL ER ATE 210
210
Notes to the
September 30, 2020
September 30, 2020
(e) COVID-19
The onslaught of the coronavirus pandemic (COVID 19) caused a contraction in all the economies in which
the Group operates. The spread of the virus and stringent exit and entry protocols weighed on global travel
and limited tourism demand. In addition, the downturn in global demand has also resulted in depressed
oil and gas prices, negatively impacting government revenues for one of the major territories in which we
operate.
Our monitoring mechanisms ramped up as we kept a close eye on the health crisis and on the economic
impact on our major trading partners and the contagion effect on the industries in sovereigns in which we
operate. Arising from this exercise, we recognised that our borrowing customers may experience
significant fallout which could result in increased credit losses. We saw positive impact from the extension
of moratoriums, payment holidays and other accommodative activities on the delinquency levels of the
portfolios. Despite the positive trend observed, we did make significant adjustments to our ECLs to
STATEMENTS
recognise the increased credit risk associated with the environment.

STATEMENTS
Our investment portfolios were impacted by the widening of credit spreads and foreign exchange changes
which resulted in significant fall-off in asset prices.
FINANCIAL
FINANCIAL
Our Income would have been negatively impacted by waiver or reduction of fees associated with certain
loan facilities and reduction in loan volumes due to contraction in economic activity.
THETHE
TOTO
- NOTES
(f) Estimates of future benefit payments and premiums arising from long duration insurance contracts
- NOTES
The determination of the liabilities under insurance contracts represents the liability for future benefits
payable by the Group based on contracts for the life assurance business in force at the date of the statement
STATEMENTS
STATEMENTS
of financial position. These liabilities represent the amount which, together with future premiums and
investment returns will, in the opinion of the actuary, be sufficient to pay future benefits relating to contracts
of insurance in force, as well as meet the expenses incurred in connection with such contracts. For the
FINANCIAL
Trinidad and Tobago life insurance subsidiaries, actuarial liabilities are calculated using the CPPM. The
FINANCIAL
Jamaican life insurance subsidiaries use PPM. Both the CPPM and PPM valuations are based on
assumptions of mortality, persistency, investment income, renewal expenses and other assumptions
considered appropriate to be included in the basis for the determination of the liabilities of the Group under
the terms of its life insurance policy contracts in force. A margin for risk or uncertainty (adverse deviations)
in these assumptions is added to the liability. The assumptions are examined each year in order to determine
their validity in light of current best estimates or to reflect emerging trends in the Group’s experience.
For the Dutch Caribbean life insurance subsidiaries, reserves are calculated on a Modified Net Premium
Method. The Net Premium Method values liabilities as the present value of future benefits minus the present
value of future net premiums.
The main source of uncertainty is that epidemics and wide-ranging lifestyle changes, such as in eating,
smoking and exercise habits, could result in future mortality being significantly worse than in the past for
the age groups in which the Group has significant exposure to mortality risk. However, continuing
improvements in medical care and social conditions could result in improvements in longevity in excess of
those allowed for in the estimates used to determine the liability for contracts where the Group is exposed
for longevity risk.
Sensitivity analyses for key estimates used in determining the actuarial liabilities are included in Note 50.
211
Notes to the
September 30, 2020
September 30, 2020
(g) The ultimate liability arising from claims made under short duration insurance contracts
For the property and casualty insurance business, outstanding claims comprise estimates of the amount of
reported losses and loss expenses and a provision for losses incurred but not reported (IBNR) based on
the historical experience of the Group and industry data. These claims are analysed separately between
those arising from damage to insured property and consequential losses. Claims arising from damage to
insured property can be estimated with greater reliability, and the Group’s estimation processes reflect all
the factors that influence the amount and timing of cash flows from these contracts. The shorter settlement
period for these claims allow the Group to achieve a higher degree of certainty about the estimated cost of
claims, and relatively little IBNR is held at year-end. However, the longer time needed to assess the
emergence of claims arising from consequential losses makes the estimation process more uncertain for
these claims. Significant delays may occur in the notification of claims and a substantial measure of
experience and judgment is involved in assessing outstanding liabilities, the ultimate cost of which cannot
be known with certainty as at the reporting date. The reserve for claims outstanding is determined on the
basis of information currently available; however, it is inherent in the nature of the business written that the
STATEMENTS
STATEMENTS
ultimate liabilities may vary as a result of subsequent developments.
Sensitivity analyses for key estimates used in determining the actuarial liabilities are included in Note 50
FINANCIAL
FINANCIAL
(h) Future obligations for post-employment benefits
THE
The cost of these benefits and the present value of the future obligations depend on a number of factors
THE
TOTO
that are determined by actuaries using a number of assumptions. The assumptions used in determining the
- NOTES
net periodic cost or income for retirement benefits include the expected long-term rate of return on the
- NOTES
relevant plan assets, the discount rate and, in the case of health benefits, the expected rate of increase in
STATEMENTS
health costs. Any changes in these assumptions will impact the net periodic cost or income recorded for
STATEMENTS
retirement benefits and may affect planned funding of the pension plans. The expected return on plan assets
assumption is determined on a uniform basis, considering long-term historical returns, asset allocation and
future estimates of long-term investment returns. The Group determines the appropriate discount rate at
FINANCIAL
FINANCIAL
the end of each year, which represents the interest rate that should be used to determine the present value
of estimated future cash outflows expected to be required to settle the retirement benefit obligations. In
determining the appropriate discount rate, the Group considered interest rate on government bonds that
are denominated in the currency in which the benefits will be paid, and have terms to maturity approximating
the terms of the related obligations. The expected rate of increase of health costs has been determined by
comparing the historical relationship of the actual health cost increases with the rate of inflation. Other key
assumptions for the retirement benefits are based on current market conditions.
(i) Interests in structured entities
Unit Trust Scheme

A subsidiary of the Group manages a Unit Trust Scheme comprising seven portfolios – the JMD Money
Market Portfolio, the JMD High Yield Portfolio, the High Yield Asset and Loans Portfolio, the Caribbean
Equity Portfolio, the USD Money Market Portfolio, the USD Indexed Bond Portfolio and the USD Bond
Portfolio. The Unit Trust has an independent trustee. A subsidiary of the Group is the investment manager
of the Unit Trust. Determining whether the Group controls the Unit Trust requires Judgment. This would
include a consideration of the investors’ rights to remove the investment manager and an assessment of
the exposure to variability arising from the aggregate economic interests of the Group in the Trust.
One of the Group’s subsidiaries, as investment manager, earns income from preliminary charges ranging
from 0-4% and management fees ranging from 1.5-1.75% on these Unit Trust portfolios. The Group owns
43% (2019 - 0.40%) of the units in the Unit Trust at September 30, 2020.
AC C EL ER ATE 212
212
Notes to the
September 30, 2020
September 30, 2020
(i) Interests in structured entities (continued)
Unit Trust Scheme (continued)

In addition, pending the availability of investments consistent with the investment objective of each
portfolio, a significant portion of the Unit Trust funds are invested in cash equivalent instruments issued by
the Group. These are short-term fixed rate instruments with maturities of 90 days or less, collateralised
by Government of Jamaica securities, that face an insignificant risk of changes in fair value. The interest
margin earned by the Group on these instruments is immaterial to the results of its operations.
Management has concluded that, although the contractual terms provide the Group with power over the
Unit Trust, the Group is acting as an agent for the investors in the Unit Trust as management does not
consider the Group’s aggregate economic exposure and interest in the Unit Trust to be
significant. Management does not believe that the investment of Unit Trust funds in cash equivalent
instruments issued by the Group changes this conclusion as (i) this investment is intended to be temporary
STATEMENTS
STATEMENTS
and not representative of the Unit Trust's purpose or investment objective (ii) the investment is in cash
equivalent instruments subject to an insignificant risk of changes in fair value that bear interest at market
rates and (iii) the investment does not expose the Group to any additional variability of returns from the
FINANCIAL
Unit Trust beyond its insignificant aggregate interest through fees and unit holdings. The Unit Trust has
FINANCIAL
therefore not been consolidated.

THETHE
Mutual Funds
TOTO
- NOTES
The Group manages a series of mutual funds through its trust and asset management subsidiaries,
- NOTES
Guardian Group Trust Limited and Guardian Asset Management and Investment Services Limited. These
funds invest mainly in equity securities, debt securities and cash and cash equivalents. As at the
STATEMENTS
STATEMENTS
consolidated statement of financial position date, the Group has determined that it controls specific funds
by virtue of an entrenched management contract. Similar to the Group’s consolidation of its subsidiaries,
the assets and liabilities of these funds have been consolidated in the financial statements on a line-by-
FINANCIAL
line basis. The carrying value of the total investments and cash held by the funds are recorded as
FINANCIAL
investment securities of mutual fund unit holders and cash and cash equivalents of mutual fund unit
holders respectively on the consolidated statement of financial position. Interests held by external parties
in the funds that are consolidated are recorded as third party interest in mutual funds measured at net
assets value on the consolidated statement of financial position.
4. Responsibilities of the Appointed Actuaries and External Auditors
The Boards of Directors of the insurance subsidiaries, pursuant to the legislation in the various jurisdictions where
the Group operates, appoint the Actuaries. Their responsibility is to carry out an annual valuation of the Group’s
policyholders’ liabilities in accordance with accepted actuarial practice and regulatory requirements and report
thereon to the policyholders and shareholders. In performing the valuations for life insurance policies and
annuities, the Actuaries make assumptions as to the future rates of interest, asset defaults, mortality, morbidity,
claims experience, policy termination, inflation, reinsurance recoveries, expenses and other contingencies, taking
into consideration the circumstances of the Group and the insurance policies in force. In performing valuations for
the general insurance companies assumptions are also made in relation to loss ratios, earned income ratios, loss
development factors etc.
The shareholders pursuant to the legislation in the various jurisdictions where the Group operates appoint the
external auditors. Their responsibility is to conduct an independent and objective audit of the financial statements
in accordance with International Standards on Auditing and report thereon to the shareholders. In carrying out
their audit, the auditors also make use of the work of the Appointed Actuaries and their reports on the policyholders’
liabilities.
213
Notes to the
September 30, 2020
September 30, 2020
5. Segment Reporting
The Group is organised into the following business segments:
(a) Consumer & SME banking – This incorporates the provision of banking services to individual and small and
medium business clients.
(b) Payment services – This incorporates the provision of card related services.
(c) Corporate & commercial banking – This incorporates the provision of banking services to large corporate
clients.
(d) Treasury & correspondent banking – This incorporates the Group’s liquidity and investment management
function, management of correspondent bank relationships, and relationships with other financial institutions
as well as foreign currency dealing activities.
STATEMENTS
STATEMENTS
(e) Wealth, asset management & investment banking – This incorporates stock brokerage, securities trading,
investment management and other financial services provided by certain overseas subsidiaries.
FINANCIAL
(f) Life and health insurance & pension fund management – This incorporates life insurance, health insurance,
FINANCIAL
pension and investment management services.
THE
THE
(g) General insurance – This incorporates property and casualty insurance services.
TOTO
- NOTES
- NOTES
The Group’s trustee services and the outstanding transactions and balances of certain inactive subsidiaries are
classified as unallocated for segment reporting.
STATEMENTS
STATEMENTS
Unallocated assets and liabilities
Unallocated assets and liabilities comprise current income tax payable and recoverable, deferred income tax
FINANCIAL
assets and liabilities and assets and liabilities of support units of the Group that are not allocated to the banking
FINANCIAL
segments.
Direct allocated costs and unallocated corporate expenses

Costs incurred by the support units of National Commercial Bank Jamaica Limited (“NCBJ”) are allocated to the
business segments based on certain criteria determined by management. These criteria include staff
complement, square footage and time spent providing the service to the business segment. The expenses that
are allocated are mainly staff costs, depreciation and amortisation and other operating expenses and are treated
as direct allocated costs.
Costs allocated to the banking segments are reported directly by those segments to the President & Group Chief
Executive Officer and Board of Directors. Costs allocated to the non-banking segments are not included in the
individual internal reports presented by those segments and are treated as unallocated corporate expenses.
Eliminations
Eliminations comprise inter-segment transactions.
AC C EL ER ATE 214
214
FINANCIAL STATEMENTS - NOTES TO THE FINANCIAL STATEMENTS
215
Notes to the
Financial Statements
September 30, 2020
5. Segment Reporting (Continued)

Wealth, Life &Health
Asset Insurance &
Year ended
Consumer Corporate & Treasury & Management Pension
September 30, 2020
& SME Payment Commercial Correspondent & Investment Fund General
Banking Services Banking Banking Banking Management Insurance Other Eliminations Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
External revenue 29,361,427 17,343,238 11,952,596 13,461,902 14,393,206 103,675,982 65,505,763 1,122,445 - 256,816,559
Revenue from other
segments 2,454,279 2,141 201,970 4,136,991 3,959,457 531,614 455,967 20,671,821 (32,414,240) -
Total revenue 31,815,706 17,345,379 12,154,566 17,598,893 18,352,663 104,207,596 65,961,730 21,794,266 (32,414,240) 256,816,559
Net interest income 23,164,265 6,313,275 7,257,443 3,200,585 5,667,085 14,530,207 894,235 (3,104,573) (5,297,607) 52,624,915
Net fee and commission
income 4,218,382 5,326,452 1,191,418 436,650 4,022,325 2,482,394 1,424,104 2,071,857 (1,389,785) 19,783,797
Gain on foreign currency and
investment activities 191,362 (1,836) 166,153 5,592,506 714,036 4,665,539 (156,101) (615,219) (1,764,124) 8,792,316
Net result from insurance
activities - - - - - 17,606,502 12,794,953 36,494 2,018,042 32,455,991
Credit impairment
(losses)/reversals (5,074,667) (2,296,979) (1,892,194) (275,011) 312,423 (1,339,741) (93,775) 375,837 - (10,285,107)
Other operating income and
dividend income 200,217 2,401 646 12,975 463,065 1,274,517 75,134 2,259,390 (3,642,058) 646,287
Total operating income 22,699,559 9,343,313 6,722,466 8,967,705 11,178,934 39,219,418 14,938,550 1,023,786 (10,075,532) 104,018,199
Staff costs 9,584,149 923,085 243,588 188,694 2,401,393 8,150,773 4,939,174 2,491,215 3,747,374 32,669,445
Depreciation and amortisation 2,278,513 526,722 9,818 10,610 159,547 752,516 458,166 2,205,150 - 6,401,042
Finance cost 679,434 - - - 42,623 686,552 - 3,117 - 1,411,726
Other operating expenses 5,309,676 3,259,728 1,113,647 1,343,291 2,443,195 5,911,356 3,323,105 4,325,346 (6,629,005) 20,400,339
Total operating expenses 17,851,772 4,709,535 1,367,053 1,542,595 5,046,758 15,501,197 8,720,445 9,024,828 (2,881,631) 60,882,552
Operating profit before
allocated costs 4,847,787 4,633,778 5,355,413 7,425,110 6,132,176 23,718,221 6,218,105 (8,001,042) (7,193,901) 43,135,647
Allocated costs (5,902,616) (2,193,446) (2,643,040) (533,262) - - - - - (11,272,364)
Operating (loss)/profit c/fwd (1,054,829) 2,440,332 2,712,373 6,891,848 6,132,176 23,718,221 6,218,105 (8,001,042) (7,193,901) 31,863,283
Notes to the
September 30, 2020
Wealth, Life & Health

Asset Insurance &
Consumer & Corporate & Treasury & Management Pension
Year ended SME Payment Commercial Correspondent & Investment Fund General
September 30, 2020 Banking Services Banking Banking Banking Management Insurance Other Eliminations Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Operating
(loss)/profit b/fwd (1,054,829) 2,440,332 2,712,373 6,891,848 6,132,176 23,718,221 6,218,105 (8,001,042) (7,193,901) 31,863,283
Unallocated
corporate expenses (4,602,198)
Share of profit of
associates 312,391
NCB Annual Report 2019
Profit before
Taxation 27,573,476
Taxation (690,064)
Net Profit 26,883,412
Segment assets 439,335,132 27,251,600 156,880,584 366,204,287 346,603,496 563,591,085 99,683,481 70,681,171 (293,883,666) 1,776,347,170
Associates 6,955,109
Unallocated assets 16,957,996
Total assets 1,800,260,275
Segment liabilities 382,908,884 8,274,345 126,645,928 388,005,295 299,625,401 431,194,623 66,227,885 105,439,443 (219,511,376) 1,588,810,428
Unallocated liabilities 11,244,924
Total liabilities 1,600,055,352
Capital expenditure 3,860,713 896,208 333,221 123,260 688,512 6,858,058 182,065 1,229,791 - 14,171,828
For more information, visit
www.myncb.com
216
FINANCIAL
STATEMENTS -- NOTES
NOTES TO
TO THE
THE FINANCIAL STATEMENTS
217
Notes to the
September 30, 2020
September 30, 2020
Total per Unallocated Total per

Year ended segment Allocated corporate income
September 30, 2020 report expenses expenses statement
$’000 $’000 $’000 $’000
Reconciliation to income statement
Net interest income 52,624,914 (104,326) (30,879) 52,489,709
Net fee and commission income 19,783,797 177,103 1,408,507 21,369,407
Gain on foreign currency and investment activities 8,792,316 749 221 8,793,286
Net result from insurance activities 32,455,991 - - 32,455,991
Other operating income and dividend income 646,287 133,177 3,224,026 4,003,490
Credit impairment losses (10,285,107) 87 26 (10,284,994)
Staff costs (32,669,445) (6,062,633) (1,794,590) (40,526,668)
Depreciation and amortisation (6,401,040) (1,421,700) (706,731) (8,529,471)
Finance cost (1,411,727) - - (1,411,727)
Other operating expenses (20,400,339) (3,994,821) (6,702,778) (31,097,938)
Operating profit 43,135,647 (11,272,364) (4,602,198) 27,261,085
Notes to the
September 30, 2020
September 30, 2020
Year ended Wealth,

September 30, 2019 Asset Life & Health
Corporate & Treasury & Management Insurance &
Consumer & Payment Commercial Correspondent & Investment Pension Fund General
SME Banking Services Banking Banking Banking Management Insurance Other Eliminations Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
External revenue 30,269,607 16,731,518 10,575,574 15,592,674 15,709,862 52,778,722 27,402,192 2,192,709 - 171,252,858
Revenue from other
segments 2,036,630 - 317,584 5,445,625 11,311,914 72,303 250,242 17,672,530 (37,106,828) -
Total revenue 32,306,237 16,731,518 10,893,158 21,038,299 27,021,776 52,851,025 27,652,434 19,865,239 (37,106,828) 171,252,858
Net interest income 23,102,162 5,418,956 5,595,928 4,194,553 4,784,874 8,302,089 816,623 (2,334,507) (3,048,955) 46,831,723
Net fee and commission

income 4,860,085 5,754,119 961,680 402,971 3,901,888 2,457,320 1,322,139 1,796,946 (5,287,038) 16,170,110
Gain on foreign currency
and investment activities 241,041 (1,533) 208,791 6,584,043 4,598,896 4,438,842 405,013 (125,853) (3,049,096) 13,300,144
Net result from insurance
activities - - - - - 9,597,806 5,239,425 - (405,716) 14,431,515
Credit impairment
(losses)/reversals (4,173,251) (977,370) (59,362) 538,456 329,664 (357,014) (85,656) (41,033) 814 (4,824,752)
Other operating income
and dividend income 238,420 3,550 1,161 89,320 463,937 1,438,500 100,640 3,158,495 (3,266,052) 2,227,971
Total operating income 24,268,457 10,197,722 6,708,198 11,809,343 14,079,259 25,877,543 7,798,184 2,454,048 (15,056,043) 88,136,711
Staff costs 9,777,214 1,042,758 349,166 268,586 2,028,194 3,308,616 2,645,522 1,136,439 3,340,185 23,896,680
Depreciation and
amortisation 1,137,272 551,667 9,003 13,379 135,306 435,464 405,385 2,057,839 (137,248) 4,608,067
Other operating expenses 4,749,504 2,852,730 495,276 1,106,209 2,022,364 3,393,890 2,413,878 1,086,924 (5,769,632) 12,351,143
Total operating
expenses 15,663,990 4,447,155 853,445 1,388,174 4,185,864 7,137,970 5,464,785 4,281,202 (2,566,695) 40,855,890
Operating profit before
allocated costs 8,604,467 5,750,567 5,854,753 10,421,169 9,893,395 18,739,573 2,333,399 (1,827,154) (12,489,348) 47,280,821
Allocated costs (9,018,055) (2,113,845) (644,550) (523,680) - - - - - (12,300,130)
Operating (loss)/profit
c/fwd (413,588) 3,636,722 5,210,203 9,897,489 9,893,395 18,739,573 2,333,399 (1,827,154) (12,489,348) 34,980,691
www.myncb.com
218
FINANCIAL
STATEMENTS -- NOTES
NOTES TO
TO THE
219
Notes to the
September 30, 2020
Wealth, Life & Health

Asset Insurance &
Corporate & Treasury & Management Pension
Year ended Consumer & Payment Commercial Correspondent & Investment Fund General
September 30, 2019 SME Banking Services Banking Banking Banking Management Insurance Other Eliminations Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Operating (loss)/profit
b/fwd (413,588) 3,636,722 5,210,203 9,897,489 9,893,395 18,739,573 2,333,399 (1,827,154) (12,489,348) 34,980,691
Unallocated corporate
expenses (8,536,619)
Gain on disposal of
subsidiary 2,626,425
Share of profit of
associates 2,897,176
Gain on disposal of
associate 3,291,544
Gain on revaluation on
investment in
associate 2,329,179
Profit before Taxation
37,588,396
Taxation (6,423,458)
Net Profit 31,164,938
Segment assets 420,800,189 28,996,202 126,194,622 329,569,352 269,046,779 450,901,821 104,247,538 54,561,377 (186,879,267) 1,597,438,613
Associates 5,545,451
Unallocated assets 13,315,538
Total assets 1,616,299,602
Segment liabilities 369,547,583 17,462,507 92,741,678 327,937,875 223,599,296 344,878,799 75,253,247 83,248,946 (120,363,743) 1,414,306,188
Unallocated liabilities 18,122,796
Total liabilities 1,432,428,984
Capital expenditure 3,640,303 987,573 333,064 142,982 1,121,849 1,411,388 914,695 407,949 - 8,959,803
Notes to the
September 30, 2020
Year ended Total per Unallocated Total per

segment Allocated corporate income
September 30, 2019 report expenses expenses statement
$’000 $’000 $’000 $’000
Reconciliation to income statement
Net interest income 44,722,235 (98,111) (29,040) 44,595,084
Net fee and commission income 16,170,110 150,252 2,859,471 19,179,833
Gain on foreign currency and investment activities 15,409,632 1,886 564 15,412,082
Net result from insurance activities 14,431,515 - - 14,431,515
Other operating income and dividend income 2,227,971 122,856 36,368 2,387,195
Staff costs (4,824,752) 17 2 (4,824,733)
STATEMENTS
Provision for credit losses (23,896,680) (6,345,531) (1,878,333) (32,120,544)
STATEMENTS
Depreciation and amortisation (4,608,067) (1,800,426) (532,941) (6,941,434)
Other operating expenses (12,351,143) (4,331,073) (8,992,709) (25,674,925)
FINANCIAL
Operating profit
FINANCIAL
47,280,821 (12,300,130) (8,536,619) 26,444,072
THE
Geographical
THE
TOTO
The Group operates mainly via four geographical segments; Jamaica, Trinidad & Tobago, Dutch Antilles & Bermuda.
- NOTES
It operates in life and health insurance & pension fund management and general insurance segments within all four
- NOTES
geographical segments and primarily in Jamaica within the commercial & consumer, payment services, corporate
STATEMENTS
banking, treasury & correspondent banking and wealth, asset management & investment banking segments. Jamaica
STATEMENTS
represents 38.7% (2019 – 71.4%), Trinidad & Tobago represents 26.1% (2019 – 10.9%), Bermuda represents 4.8%
(2019 – 7.5%) and Dutch Antilles represents 17.0% (2019 – 2.3%) of total operating income.
FINANCIAL
FINANCIAL
The Group’s geographic information:
Trinidad Dutch
Jamaica &Tobago Antilles Bermuda Other Total
2020
$’000 $’000 $’000 $’000 $000 $’000
Revenue 99,302,517 67,076,013 43,709,211 12,273,816 34,455,001 256,816,558
Total assets 955,745,445 246,646,840 170,406,680 202,747,511 224,713,799 1,800,260,275
2019
Revenue 100,712,272 24,537,361 17,549,107 11,520,916 16,933,202 171,252,858
Total assets 932,272,816 214,920,543 147,181,693 169,378,499 152,546,051 1,616,299,602
Segment assets consist of investments that match insurance and banking liabilities, intangible assets and other
operating assets such as receivables and cash. They exclude deferred income taxes, retirement benefit assets,
investment in associates and investment in subsidiaries.
Segment liabilities comprise insurance liabilities, financial liabilities arising mainly from investment contracts and
borrowing arrangements. They exclude items such as taxation, retirement benefit liabilities and business development
loans.
AC C EL ER ATE 220
220
Notes to the
September 30, 2020
September 30, 2020
6. Net Interest Income
The Group The Company

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Interest income
Loans and advances 43,504,530 42,265,996 - 1,930
Investment securities –
Fair value through other
20,140,573 18,382,376 486,455 551,064
comprehensive income
Amortised cost 9,063,253 3,495,283 - -
Reverse repurchase agreements 176,586 91,042 - -
STATEMENTS
Deposits and other 1,536,936 833,531 21,003 164,386

STATEMENTS
74,421,878 65,068,228 507,458 717,380

FINANCIAL
Interest expense
FINANCIAL
Customer deposits 3,841,456 4,034,586 - -

THETHE
Repurchase agreements 6,641,151 5,193,791 - -

TOTO
Policyholders’ benefits 396,343 1,499,512 - -

- NOTES
- NOTES
Securitisation arrangements 2,799,544 3,473,877 - -

Other borrowed funds and amounts due to
STATEMENTS
STATEMENTS
banks 8,253,675 6,271,378 5,805,066 4,604,443

21,932,169 20,473,144 5,805,066 4,604,443
FINANCIAL
Net interest income/(expense) 52,489,709 44,595,084 (5,297,608) (3,887,063)

FINANCIAL
221
Notes to the
September 30, 2020
September 30, 2020
7. Net Fee and Commission Income

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Fee and commission income
Consumer & SME Banking 4,335,074 4,959,084 - -
Payment services 9,908,668 10,180,991 - -
Corporate & commercial banking 1,209,183 957,043 -
Management fees - - 3,193,467 7,226,241
Treasury and correspondent banking 428,296 342,784 - -
Wealth, asset management & investment - -
4,022,325 4,169,481
banking
STATEMENTS
STATEMENTS
Life and health insurance & pension fund - -
2,482,394 2,280,984
management
Brokerage fees 1,934,131 988,213 - -
FINANCIAL
- -
FINANCIAL
General insurance 1,424,104 93,282
Other 181,150 200,746 - -
THE
25,925,325 24,172,608 3,193,467 7,226,241
THE
TOTO
Fee and commission expense
- NOTES
- NOTES
Payment services 4,555,918 4,992,775 - -
STATEMENTS
21,369,407 19,179,833 3,193,467 7,226,241
STATEMENTS
8. Gain on Foreign Currency and Investment Activities
FINANCIAL
FINANCIAL
2020 2019 2020 2019
$'000 $'000 $'000 $'000
Net foreign exchange (losses)/gains (989,157) 2,991,415 (4,919,960) (1,460,519)
Loss on sale of debt securities held for
(23,713) (25,673) - -
trading
Gain on sale of debt securities at FVOCI 6,147,844 8,390,934 - -
Unrealised losses on FVPL instruments (1,231,579) - - -
Interest income on FVPL instruments 5,553,622 2,109,488 - -
Gain on sale of equity securities 1,039,970 881,676 - -
Gain on sale of investment properties 38,171 - - -
Fair value (losses)/gain on revaluation of
(961,463) 448,565 - -
investment property (Note 25)
Other (780,409) 615,677 - -
8,793,286 15,412,082 (4,919,960) (1,460,519)
Net foreign exchange (losses)/gains include gains and losses arising from translation of assets and liabilities
denominated in foreign currencies as well as those arising from foreign currency dealing activities.
AC C EL ER ATE 222
222
Notes to the
September 30, 2020
September 30, 2020
9. Premium Income
The Group
2020 2019
$'000 $'000
Annuity contracts 28,947,389 12,541,598
Life and Health insurance contracts 86,469,448 21,566,816
General insurance contracts 19,785,164 26,510,278
135,202,001 60,618,692
The Group
2020 2019
STATEMENTS
$'000 $'000
STATEMENTS
Insurance premium income

Short term insurance contracts 77,491,817 35,764,043
FINANCIAL
Long term insurance contracts 57,710,184 24,854,649

FINANCIAL
135,202,001 60,618,692
THETHE
Insurance premium ceded to reinsurers

TOTO
Short term insurance contracts 39,962,983 15,157,286

- NOTES
- NOTES
Long term insurance contracts 2,040,623 900,621

STATEMENTS
42,003,606 16,057,907
STATEMENTS
Net insurance premium 93,198,395 44,560,785

FINANCIAL
10. Net Policyholders’ and Annuitants’ Benefits and Reserves

FINANCIAL
The Group
2020 2019
$'000 $'000
Annuity contracts 30,435,951 7,748,809
Life and Health insurance contracts 19,778,474 11,991,655
General insurance contracts 5,992,775 7,565,517
56,207,200 27,305,981
223
Notes to the
September 30, 2020
September 30, 2020
10. Net Policyholders’ and Annuitants’ Benefits and Reserves (Continued)
The Group
2020 2019
$'000 $'000
Benefits and reserves under Life and Health insurance and Annuity contracts:
Gross 52,352,864 19,806,741
Recovered from reinsurers (2,138,439) (66,277)
50,214,425 19,740,464
Claims and loss adjustment reserves under General insurance contracts:
Gross 10,871,073 15,875,639
Recovered from reinsurers (4,878,298) (8,310,122)
5,992,775 7,565,517
56,207,200 27,305,981
STATEMENTS
The Group
STATEMENTS
2020
Gross Reinsurance Net
FINANCIAL
FINANCIAL
Benefits and reserves for life and annuity contracts $'000 $'000 $'000
Long-term insurance contracts with fixed and guaranteed
THE
terms and without DPF:
THE
TOTO
Death, maturity and surrender benefits 17,734,174 (159,371) 17,574,803
- NOTES
Increase in liabilities (2,616,898) 22,267 (2,594,631)
- NOTES
Long-term insurance contracts without fixed terms:
STATEMENTS
STATEMENTS
Decrease in liabilities 3,560,972 - 3,560,972
FINANCIAL
FINANCIAL
terms and with DPF:
Death, maturity and surrender benefits 23,573 - 23,573
Increase in liabilities 622 - 622
Short-term insurance contracts - life 15,386,091 (1,120,323) 14,265,768
52,352,864 (2,138,439) 50,214,425
2019
Gross Reinsurance Net
Benefits and reserves for life and annuity contracts $'000 $'000 $'000
terms and without DPF:
Death, maturity and surrender benefits 5,811,939 (383) 5,811,556
Increase in liabilities 2,024,277 (527) 2,023,750
Decrease in liabilities (2,962,347) - (2,962,347)
terms and with DPF:
Death, maturity and surrender benefits (238) - (238)
Increase in liabilities (20) - (20)
Short-term insurance contracts - life 6,128,471 (48,059) 6,080,412
19,806,741 (66,277) 19,740,464
AC C EL ER ATE 224
224
Notes to the
September 30, 2020
September 30, 2020
11. Dividend Income
2020 2019 2020 2019

$'000 $'000 $'000 $'000
Subsidiaries - - 14,652,184 9,720,304
Other equity securities 1,901,300 1,274,735 - -
1,901,300 1,274,735 14,652,184 9,720,304
12. Staff Costs

2020 2019 2020 2019
STATEMENTS
STATEMENTS
$'000 $'000 $'000 $'000

Wages, salaries, allowances and benefits 34,464,868 25,043,717 3,907,044 3,212,636
Payroll taxes 3,158,057 2,511,745 426,839 330,195
FINANCIAL
Pension costs – defined contribution plans

FINANCIAL
442,846 645,398 4,081 8,806

(Note 40)
Pension costs – defined benefit plans (Note
THETHE
511,179 219,388 - -
40)
TOTO
Staff profit share 444,186 2,659,810 - -

- NOTES
- NOTES
Termination benefits 816,159 232,397 -

Other post-employment benefits (Note 40) 689,373 808,089 - -
STATEMENTS
STATEMENTS
40,526,668 32,120,544 4,337,964 3,551,637
Wages, salaries, allowances and benefits

FINANCIAL
Included in wages, salaries, allowances and benefits are base salaries for employees. Amounts also include annual
FINANCIAL
incentive and merit awards based on performance, annual and non-annual lump-sum fringe benefits, including those
that have been agreed based on collective bargaining with the trade unions representing staff.
Employees are categorised as permanent pensionable, contract, part-time and temporary.
225
Notes to the
September 30, 2020
September 30, 2020
13. Credit Impairment Losses

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Investment securities (738,383) (135,670) 263 1,408
Loans and advances (Note 21) 11,023,377 4,960,404 - -
10,284,994 4,824,734 263 1,408
14. Other Operating Expenses

2020 2019 2020 2019
STATEMENTS
$'000 $'000 $'000 $'000
STATEMENTS
Auditors’ remuneration - current year 536,849 666,024 58,653 302,735
Auditors’ remuneration - prior year 23,037 - 23,037 -
FINANCIAL
FINANCIAL
Credit card rebates 1,102,989 1,128,137 - -
Insurance and premiums 1,320,463 796,114 12,286 -
THE
Irrecoverable general consumption tax and
THE
4,659,989 3,891,154 119,725 200
TOTO
asset tax
- NOTES
License and transaction processing fees 1,758,412 1,463,531 53,946 205,947
- NOTES
Marketing, customer care, advertising and
STATEMENTS
donations 4,200,678 3,002,992 7,916 5,057
STATEMENTS
Operating lease rentals 181,015 523,495 - -
Property, vehicle and ABM maintenance
FINANCIAL
and utilities 6,922,194 5,401,688 96,606 18,073
FINANCIAL
Stationery 511,919 280,125 370 4
Technical, consultancy and professional
3,577,974 2,623,195 (57,465) 1,296,684
fees
Travelling, courier and telecommunication 3,100,591 1,942,610 67,208 1,428
Management and royalty fees 507,960 419,241 241,364 223,447
Operational losses 990,694 427,223 - -
Other 1,703,174 3,109,396 666 1,206
31,097,938 25,674,925 624,312 2,054,781
AC C EL ER ATE 226
226
Notes to the
September 30, 2020
September 30, 2020
15. Taxation
2020 2019 2020 2019

$'000 $'000 $'000 $'000
Current:
Income tax 8,571,498 7,984,763 - -
Prior year over provision (440,187) (63,171) - -
Business levy and green funds levy 134,024 117,870 - -
Deferred income tax (Note 30) (7,575,271) (1,616,004) (2,726,972) (1,144,567)
690,064 6,423,458 (2,726,972) (1,144,567)
STATEMENTS
Income tax is calculated at rates of 25% for the Jamaican life insurance subsidiaries, 33⅓% for the Company and
STATEMENTS
other Jamaican “regulated companies”. Taxation for subsidiaries in other jurisdictions is calculated at the rates
prevailing in the relevant jurisdiction. Business and Green Fund levies are in relation to our Trinidad subsidiaries and
are taxed at a rate of 0.6% and 0.3% of gross sales. The theoretical charge for the year can be reconciled as follows:
FINANCIAL
FINANCIAL

THETHE
TOTO
2020 2019 2020 2019

- NOTES
- NOTES
$'000 $'000 $'000 $'000

Profit before tax 27,573,476 37,588,396 2,631,933 5,991,137
STATEMENTS
STATEMENTS
Tax calculated at actual tax rates 6,123,519 10,589,720 877,223 1,996,845

FINANCIAL
Income not subject to tax (14,826,650) (7,697,999) - -

FINANCIAL
Expenses not deductible for tax

purposes 11,067,989 3,688,120 1,367,505 96,156
Effect of share of profit of associates
included net of tax (133,584) (655,570) - -
Effect of change in tax rate applicable to
life insurance subsidiary (19,393) (1,235) - -
Effect of different tax rates applicable to
dividend income (711,475) (198,911) (4,966,042) (3,237,568)
Deferred tax not recognised 122,895 44,160 - -
Prior year over provision (440,187) (63,171) - -
Business Levy 123,418 117,870 - -
Other (616,468) 600,474 (5,658) -
Taxation expense 690,064 6,423,458 (2,726,972) (1,144,567)
227
Notes to the
September 30, 2020
September 30, 2020
15. Taxation (Continued)
Tax (charge)/credit relating to components of other comprehensive income are as follows:
The Group
2020
Before After
Tax Tax Tax
At the year end $’000 $’000 $’000
Currency translation losses 5,409,780 - 5,409,780
ECL and fair value gains on FVOCI investments, net of
gains recycled to profit or loss (12,515,001) 6,162,935 (6,352,066)
Remeasurement of post-employment benefit obligation 643,175 (224,229) 418,946
STATEMENTS
Other comprehensive income (6,462,046) 5,938,706 (523,340)
STATEMENTS
Recyclable 6,162,935
FINANCIAL
Non-recyclable (224,229)
FINANCIAL
THE
Deferred income tax (Note 30) 5,938,706
- NOTES
- NOTES THE
TOTO
The Group
STATEMENTS
STATEMENTS
2019
Before After
Tax Tax Tax
FINANCIAL
At the year end
FINANCIAL
$’000 $’000 $’000
Currency translation gains (21,059) - (21,059)
Fair value gains on available-for-sale investments, net of
gains recycled to profit or loss 12,971,666 (3,184,865) 9,786,801
Share of other comprehensive income of associated
companies, net of tax (1,585,419) - (1,585,419)
Remeasurement of post-employment benefit obligation (593,571) 106,317 (487,254)
Other comprehensive income 10,771,617 (3,078,548) 7,693,069
Recyclable (3,184,865)
Non-recyclable 106,317
Deferred income tax (Note 30) (3,078,548)
AC C EL ER ATE 228
228
Notes to the
September 30, 2020
September 30, 2020
16. Earnings per Stock Unit
Basic earnings per stock unit is calculated by dividing the net profit attributable to stockholders of the parent by the
weighted average number of ordinary stock units in issue during the year. Diluted earnings per stock unit equals basic
earnings per stock unit as there are no potential dilutive ordinary stock units.
Restated
2020 2019
Net profit attributable to stockholders of the parent ($’000) 19,090,378 29,869,398
Weighted average number of ordinary stock units in issue (‘000) 2,384,100 2,429,180
Basic and diluted earnings per stock unit ($) 8.01 12.30
17. Cash in Hand and Balances at Central Banks

STATEMENTS
STATEMENTS
The Group
2020 2019
FINANCIAL
FINANCIAL
$'000 $'000
Cash in hand 19,399,647 14,827,733
THETHE
TOTO
Balances with central banks other than statutory reserves 19,087,814 10,390,693
- NOTES
- NOTES
Included in cash and cash equivalents 38,487,461 25,218,426

STATEMENTS
Statutory reserves with central banks – non-interest-bearing 35,552,128 37,316,963

STATEMENTS
74,039,589 62,535,389
FINANCIAL
FINANCIAL
Statutory reserves with central banks represent the required ratio of prescribed functional and foreign currency
liabilities. They are not available for investment, lending or other use by the Group.
229
Notes to the
September 30, 2020
September 30, 2020
18. Due from Banks

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Placements with NCBJ - - 2,760,873 3,844,168
Items in course of collection from banks - 917,269 - -
Placements with banks 181,707,912 142,397,657 - -
181,707,912 143,314,926 2,760,873 3,844,168
Expected credit losses (705,115) (398,595) - -
Interest receivable 3,369,405 4,118,745 - -
184,372,202 147,035,076 2,760,873 3,844,168
Less: Placements pledged as collateral for letters
STATEMENTS
STATEMENTS
of credit (Note 23) (5,473,992) (5,677,890) - -
178,898,210 141,357,186 2,760,873 3,844,168
FINANCIAL
FINANCIAL
Placements with banks include short term fixed deposits and other balances held with correspondent banks. These
bank balances are held to facilitate the payment of wire transfers, bank drafts, treasury related activities and to satisfy
THE
liquidity requirements.
THE
TOTO
- NOTES
The amounts included as cash equivalents in the statement of cash flows are as follows:
- NOTES
STATEMENTS
STATEMENTS
2020 2019 2020 2019
$'000 $'000 $'000 $'000
FINANCIAL
FINANCIAL
Placements with NCBJ - - 2,760,873 3,844,168
Placements with other banks 165,050,827 137,238,441 - -
Less: amounts restricted to the settlement of
obligations under securitisation
arrangements (3,622,144) (3,446,427) - -
161,428,683 133,792,014 2,760,873 3,844,168
19. Derivative Financial Instruments
The carrying values of derivatives for the Group are as follows:

The Group
2020 2019
Assets $'000 $'000
Forward contracts 287,758 -
Equity indexed options 365,977 239,279
635,735 239,279
Liabilities
Equity indexed options - 239,279
- 239,279
AC C EL ER ATE 230
230
Notes to the
September 30, 2020
September 30, 2020
19. Derivative Financial Instruments (Continued)
Derivatives are carried at fair value and carried in the statement of financial position as separate assets and liabilities.
Asset values represent the cost to the Group of replacing all transactions with a fair value in the Group’s favour
assuming that all relevant counterparties default at the same time, and that transactions can be replaced
instantaneously. Liability values represent the cost to the Group counterparties of replacing all their transactions with
the Group with a fair value in their favour if the Group was to default. Derivative assets and liabilities on different
transactions are only set off if the transactions are with the same counterparty, a legal right of set-off exists and the
cash flows are intended to be settled on a net basis.
Equity indexed options

The derivative liability represents the equity index option element of principal protected notes issued by the Group
(Note 3(d)) and is carried at fair value.
The embedded derivative asset represents equity index options purchased by the Group to match the liability. The
STATEMENTS
terms of the purchased options are identical to those included in the principal protected notes issued by the Group.
STATEMENTS
The Group is exposed to credit risk on purchased options to the extent of the carrying amount, which is their fair value.
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
STATEMENTS THETHE
TOTO
- NOTES FINANCIAL
FINANCIAL
231
Notes to the
September 30, 2020
September 30, 2020
20. Reverse Repurchase Agreements
The Group entered into collateralised reverse repurchase agreements which may result in credit exposure in the event
that the counterparty to the transaction is unable to fulfill its contractual obligations. Included within reverse repurchase
agreements is related accrued interest receivable of $26,258,000 (2019 – $2,331,000) for the Group.
At September 30, 2020, the Group held $10,650,395,000 (2019 – $8,352,184,000) of securities, mainly representing
Government of Jamaica debt securities, as collateral for reverse repurchase agreements. Of amounts received as
collateral for reverse repurchase agreements, the Group has pledged $3,952,778,000 (2019 – $1,754,351,000) as
collateral for some of their own repurchase agreements.
Included in reverse repurchase agreements for the Group are securities with an original maturity of less than 90
days amounting to $5,814,046,000 (2019 – $2,198,982,000) which are regarded as cash equivalents for purposes
of the statement of cash flows.
21. Loans and Advances
STATEMENTS
STATEMENTS
2020 2019 2020 2019
FINANCIAL
FINANCIAL
$'000 $'000 $'000 $'000
Gross loans and advances, includes
467,383,856 432,621,499 250,000 250,000
THE
mortgage loans
THE
TOTO
Provision for credit losses (18,587,894) (13,157,620) (37) -
- NOTES
- NOTES
448,795,962 419,463,879 249,963 250,000
Interest receivable 4,158,974 3,638,721 1,930 1,852
STATEMENTS
STATEMENTS
452,954,936 423,102,600 251,893 251,852
The current portion of loans and advances amounted to $40,383,748,000 (2019 – $47,204,344,000) for the Group.
FINANCIAL
FINANCIAL
The movement in the provision for credit losses determined under the requirements of IFRS is as follows:
The Group
2020 2019
$'000 $'000
Balance at beginning of year 13,157,620 8,260,943
On acquisition of subsidiary - 1,904,905
13,157,620 10,165,848
Provided during the year 11,965,418 5,945,612

Recoveries (942,041) (985,208)
Net charge to the income statement (Note 13) 11,023,377 4,960,404
Write-offs (5,593,103) (1,968,632)

Balance at end of year 18,587,894 13,157,620
The provision for credit losses at the end of the year includes $5,611,863,000 (2019 - $6,534,923,000) relating to non-
BOJ regulated entities within the Group, which are not considered in calculating the excess reserves required to meet
the BOJ’s loan loss provision.
The aggregate amount of non-performing loans on which interest was not being accrued (consistent with the
requirements of the BOJ) as at September 30, 2020 was $24,742,459,000 (2019 – $22,826,699,000).
AC C EL ER ATE 232
232
Notes to the
September 30, 2020
September 30, 2020
21. Loans and Advances (Continued)
The provision for credit losses determined under BOJ regulatory requirements is as follows:
The Group
2020 2019
$'000 $'000
Specific provision 8,667,804 6,589,045
General provision 3,188,908 2,981,276
11,856,712 9,570,321
Excess of regulatory provision over IFRS provision recognised in NCBJ reflected in
non-distributable loan loss reserve (Note 45) - 2,947,624
STATEMENTS
22. Investment Securities

STATEMENTS

FINANCIAL
2019 2020 2019

FINANCIAL
2020
$'000 $'000 $’000 $’000
THETHE
Investment Securities Classified as FVPL:

TOTO
Government of Jamaica debt securities 17,042,357 18,086,395 - -

- NOTES
- NOTES
Other Government securities 79,215,400 64,261,102 - -

- -
STATEMENTS
Corporate debt securities 24,158,097 24,373,928

STATEMENTS
Quoted and unquoted equities 70,880,420 61,647,571 - -

Collective Investment Schemes 1,582,176 746,075 - -
FINANCIAL

FINANCIAL
194,236,324 170,439,418 - -
Investment Securities Classified as FVOCI (available-for-
sale) and Amortised Costs (Loans and Receivables):
Investment securities at FVOCI (available-for-sale):
Other Government securities 52,587,986 48,079,962 - -
Corporate debt securities 113,988,697 115,138,911 7,000,000 7,000,000
Quoted and unquoted equities - - - -
Collective Investment Schemes - - - -
446,773,833 385,256,921 7,114,685 7,115,932
233
Notes to the
September 30, 2020
September 30, 2020
22. Investment Securities (Continued)
Investment securities at Amortised Costs (loans and receivables):

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Other Government Securities 152,259,596 132,239,015 - -
Corporate Debt Securities 26,420,045 18,981,377 - -
213,084,577 205,193,325 - -
STATEMENTS
Expected credit losses (1,008,762) (1,393,658) - -
STATEMENTS
853,085,972 759,496,006 7,114,685 7,115,932
FINANCIAL
Total investment securities, as above 853,085,972 759,496,006 7,114,685 7,115,932
FINANCIAL
Less: Pledged securities (Note 23) (396,283,225) (373,310,386) - -
THE
Amount reported on the statement of financial
THE
TOTO
position 456,802,747 386,185,620 7,114,685 7,115,932
- NOTES
- NOTES
The current portion of total investment securities amounted to $151,817,664,000 (2019 - $48,735,324,000) for the
STATEMENTS
Group.
STATEMENTS
Included in investment securities are debt securities with an original maturity of less than 90 days amounting to
FINANCIAL
$230,004,000 (2019 - $10,806,108,000) for the Group which are regarded as cash equivalents for purposes of the
FINANCIAL
statement of cash flows.
AC C EL ER ATE 234
234
Notes to the
September 30, 2020
September 30, 2020
23. Pledged Assets
The Group
2020 2019
$'000 $'000
Investment securities classified as FVOCI and amortised cost pledged as
collateral for:
Clearing services 743,651 878,461
Investment securities held as security in
respect of life insurance subsidiaries 184,625,544 171,392,318
396,283,225 373,310,386
Placements with banks pledged as collateral for letters of credit (Note 18) 5,473,992 5,677,890
STATEMENTS
STATEMENTS
401,757,217 378,988,276
The regulators hold investment assets for certain insurance subsidiaries in accordance with the legal requirements of
FINANCIAL
FINANCIAL
the respective countries or territories.

FINANCIAL
STATEMENTS - NOTES
- NOTES THETHE
TOTO
235
Notes to the
September 30, 2020
September 30, 2020
24. Investment in Associates
The Group
Restated
2020 2019
$'000 $'000
At the beginning of the year 5,545,451 35,125,894
On acquisition of subsidiary - 4,998,314
Disposal - (37,249,427)
Share of profits 312,391 2,897,176
Dividends received:
Guardian Holdings Limited - (612,351)
JMMB Group Limited - (68,518)
STATEMENTS
STATEMENTS
Other (78,491) (69,325)
Movement in other reserves and exchange rate adjustments 1,175,758 523,688
FINANCIAL
At end of year 6,955,109 5,545,451
FINANCIAL
In the previous period, the Group increased its shareholdings in GHL to 61.97%, by acquiring an additional 31.99%
THE
of its issued share capitial. GHL is now classified as a subsidiary, as, through this transaction the Group has
THE
TOTO
obtained control. The carrying value of GHL of $31,682,419,000 at April 30, 2019 was derecognised and a gain of
- NOTES
- NOTES
$2,329,179,000 recognised. Included in the gain were amounts previously recognised in OCI of $1,426,598,000
which were recycled to profit and loss. The effect of the adoption of IFRS 9 is included in the disposal amount.
STATEMENTS
STATEMENTS
In the previous period, the Group disposed of its 20.01% shareholdings in JMMB Group Limited. Consideration for
the disposal was $9,182,882,000, (settled with debt instruments) and a gain of $3,291,544,000 was recognised.
FINANCIAL
Included in the gain were amounts previously recognised in OCI of $324,329,000 which were recycled to profit and
FINANCIAL
loss. In 2018, the Group disposed of a percentage ownership in JMMB. The proceeds from the sale amounted to
$2,709,769,000 and a gain of $824,784,000 was recognised.
AC C EL ER ATE 236
236
Notes to the
September 30, 2020
September 30, 2020
24. Investment in Associates (Continued)
The following tables present summarised financial information in respect of the Group’s associates.
Other
individually
Royal Star immaterial
RGM Limited Holdings associates Total
$'000 $'000 $'000 $'000
2020
Current assets 1,611,622 8,022,414 185,400 9,819,436
Non-current assets 17,172,675 6,596,168 1,021,238 24,790,081
Current liabilities 636,493 3,796,848 41,263 4,474,604
Non-current liabilities
STATEMENTS
6,785,688 2,924,319 637,700 10,347,707

STATEMENTS
Revenue 3,412,051 5,055,075 670,734 9,137,860

Profit from continuing
FINANCIAL
operations 494,557 537,786 14,779 1,047,122

FINANCIAL
Other comprehensive income 6,155 - - 6,155

Total comprehensive income
THETHE
500,711 537,786 14,779 1,053,277

TOTO
- NOTES
- NOTES
Percentage ownership 33.33% 26.32%

STATEMENTS
Net assets of the associate - 100% 11,362,116 6,480,254

STATEMENTS
Group share of net assets 3,787,365 1,705,324

FINANCIAL
FINANCIAL
237
Notes to the
September 30, 2020
September 30, 2020
24. Investment in Associates (Continued)
Other
individually
RGM Limited Royal Star immaterial
Holdings associates Total
$'000 $'000 $'000 $'000
2019
Current assets 1,037,054 6,593,204 247,812 7,878,070
Non-current assets 16,589,990 5,409,889 967,763 22,967,643
Current liabilities 657,565 4,007,354 56,399 4,721,318
Non-current liabilities 6,572,782 2,165,956 689,402 9,428,140
Revenue 1,540,568 1,759,451 361,944 3,661,963
STATEMENTS
Profit from continuing
STATEMENTS
operations 617,658 387,578 23,654 1,028,889
Other comprehensive income (14,046) - - (14,046)
FINANCIAL
Total comprehensive income
FINANCIAL
12,026,034 7,722,020 - 19,748,054
THE
THE
Percentage ownership 33.33% 26.32%
TOTO
- NOTES
Net assets of the associate - 100% 10,396,697 5,829,783
- NOTES
Group share of net assets 3,465,566 1,534,152
FINANCIAL
STATEMENTS
AC C EL ER ATE 238
238
Notes to the
September 30, 2020
September 30, 2020
25. Investment Properties
The Group
2020 2019
$'000 $'000
Balance at beginning of year 31,385,216 1,366,950
Acquisition of subsidiary (Note 54) - 29,201,380
Disposal of subsidiary - (734,797)
Additions 4,150,516 1,197,161
Disposals (1,080,220) -
Fair value (losses)/gains (Note 8) (961,463) 448,565
STATEMENTS
Foreign exchange adjustments 1,375,750 (92,867)

STATEMENTS
Re-classification to property, plant and equipment (217,405) (1,176)

Unit-linked adjustments (901,167) -
FINANCIAL
FINANCIAL

THETHE
TOTO
-Income earned from the properties 944,879 655,890

- NOTES
- NOTES
Expenses incurred by the properties (959,386) (148,771)

STATEMENTS
STATEMENTS
The Group did not classify any properties held under operating leases as investment properties. The properties
held are stated at fair market value, as appraised by professional, independent valuators. The value for the property
was determined using the direct capitalisation approach, comparable sales approach and income and sales
FINANCIAL
FINANCIAL
comparison approach.
The valuations of investment property have been classified as Level 3 of the fair value hierarchy under IFRS 13,
‘Fair Value Measurement’.
Several valuations have been performed using a comparable sales approach but, as there have been a limited number
of similar sales in the respective markets, these valuations incorporate unobservable inputs determined based on the
valuators’ Judgment regarding size, age, condition and state of the local economy. Similarly, the valuations that are
performed using the direct capitalisation and income approaches rely on unobservable inputs based on the valuator’s
Judgment given the varying levels of income between properties within a relatively small geographic area as well as
the unavailability of risk-adjusted discount rates for properties. A key estimate used by these valuators is one for
vacancy. These valuations are sensitive to the aforementioned adjustments for the unobservable inputs, which inputs
may result in the values realised, either through use or sale, being different from the amounts recognised in these
financial statements.
239
Notes to the
September 30, 2020
September 30, 2020
26. Properties for Development and Sale

The Group
2020 2019
$'000 $'000
Properties for development and sale 2,759,044 2,368,042
27. Reinsurance Assets
The Group
2020 2019
$'000 $'000
This represents the Group’s net contractual rights under reinsurance
STATEMENTS
contracts:
STATEMENTS
Long-term insurance contracts:
With fixed and guaranteed terms 541,010 533,280
FINANCIAL
Short-term insurance contracts:
FINANCIAL
Claims reported and loss adjustment expenses (Note 39) 9,706,489 19,269,124
THE
Claims incurred but not reported (Note 39) 3,889,819 3,339,986
THE
TOTO
Unearned premiums (Note 39) 12,394,690 10,637,058
- NOTES
- NOTES
25,990,998 33,246,168
STATEMENTS
Total reinsurers’ share of insurance liabilities 26,532,008 33,779,448
STATEMENTS
Current 22,120,124 25,777,539
Non-current 4,411,884 8,001,909
FINANCIAL
FINANCIAL
Total reinsurers’ share of insurance liabilities 26,532,008 33,779,448
AC C EL ER ATE 240
240
Notes to the
September 30, 2020
September 30, 2020
28. Intangible Assets
The Group
Core deposit
& other
Trade customer Computer
name relationships software Goodwill Other Total
$’000 $’000 $’000 $’000 $’000 $’000
2020
Net book value, at 20,400,618 167,026
3,533,314 14,231,558 11,225,161 49,557,677
beginning of year
Additions - - 9,597,948 - 42,427 9,640,375
Translation adjustments - (2,408) (856,892) - 33 (859,268)
Amortisation charge (52,248) (1,764,369) (3,477,318) - (196,085) (5,490,020)
STATEMENTS
Reclassifications and
STATEMENTS
- (230,386) - - 230,386 -
adjustments
Exchange rate
- 31,611 (4,124) 141,809 419 169,715
adjustments
FINANCIAL
FINANCIAL
Net book value, at end of

3,481,066 12,266,006 16,484,775 20,542,427 244,206 53,018,480
year
THETHE
TOTO
Cost 3,627,504 18,697,811 32,625,102 20,542,427 546,572 76,039,416

- NOTES
- NOTES
Accumulated amortisation 146,438 6,431,805 16,140,326 - 302,367 23,020,936

18,434,657 20,542,427 244,205
STATEMENTS
Closing net book value 3,481,066 12,266,006 53,018,480

STATEMENTS
The Group - Restated

FINANCIAL
Core deposit
FINANCIAL
& other
Trade customer Computer
name relationships software Goodwill Other Total
$’000 $’000 $’000 $’000 $’000 $’000
2019
Net book value, at beginning of
year 233,283 3,376,739 8,788,569 - - 12,398,591
On acquisition of subsidiary
(Note 54) 3,554,532 12,671,085 82,671 20,350,795 177,474 36,836,557
Disposal of subsidiary (160,311) - (121,204) - - (281,515)
Additions - - 4,789,731 - - 4,789,731
Translation adjustments - (6,555) (109) 49,823 (40) 43,119
Amortisation charge (94,190) (1,809,711) (2,314,497) - (10,408) (4,228,806)
Net book value, at end of year 3,533,314 14,231,558 11,225,161 20,400,618 167,026 49,557,677
Cost 3,627,504 18,896,546 22,913,568 20,400,618 273,340 66,111,576

Accumulated amortisation (94,190) (4,664,988) (11,688,407) - (106,314) (16,553,899)
Closing net book value 3,533,314 14,231,558 11,225,161 20,400,618 167,026 49,557,677
Computer software for the Group at year end include items with a cost of $637,532,000 (2019 - $3,095,735,000) on
which no amortisation has yet been charged as these software applications are in the process of implementation.
241
Notes to the
September 30, 2020
September 30, 2020
29. Property, Plant and Equipment
The Group
Freehold Land and Assets
Motor Vehicles,
Buildings and Capitalised Work-in-
Furniture & Total
Leasehold Under Finance Progress
Equipment
Improvements Leases
$'000 $'000 $'000 $'000 $'000
Cost -
At September 30, 2018 10,605,197 11,599,981 939,578 289,179 23,433,935
On acquisition of subsidiary 8,931,059 2,767,771 - 217,798 11,916,628
Disposal of subsidiary (889,242) (149,394) (1,286) (5,954) (1,045,876)
Translation adjustments - 253,215 - - 253,215
Additions 244,509 2,328,907 406,481 1,190,175 4,170,072
Disposals (118,187) (208,086) (191,676) 19 (517,930)
STATEMENTS
Transfers 619,850 32,144 - (651,994) -
STATEMENTS
533,457 (42,026) - (6,306) 485,125
adjustments
At September 30, 2019 19,926,643 16,582,512 1,153,097 1,032,917 38,695,169
FINANCIAL
FINANCIAL
Translation adjustments (29,748) 478,740 - - 448,992
Additions 911,521 2,118,285 - 1,501,647 4,531,453
THE
THE
Disposals (105,338) (337,831) - 523 (442,646)
TOTO
Transfers 137,574 454,592 - (592,166) -
- NOTES
- NOTES
(312,154) 624,567 174,295 - 486,708
adjustments
STATEMENTS
Exchange rate adjustments (141,936) (83,068) - (8,897) (233,901)
STATEMENTS
Transfer to Right-of-use
(597,435) - (1,327,392) - (1,924,827)
asset
FINANCIAL
At September 30, 2020 19,789,127 19,837,797 - 1,934,024 41,560,948
FINANCIAL
Accumulated Depreciation -
At September 30, 2018 1,826,653 7,831,777 495,445 - 10,153,875
Charge for the year 840,517 1,593,824 278,284 - 2,712,625
Disposals (18,983) (177,998) (182,735) - (379,716)
41,412
adjustments (252) 41,665 (1) -
At September 30, 2019 2,647,935 9,289,268 590,993 - 12,528,196
Charge for the year 666,732 2,360,716 - - 3,027,448
Disposals (45,728) (232,721) - - 278,449
(15,201)
adjustments 1,002,049 (936,513) (80,737) -
Transfer to Right-of-use
(1,179,968)
asset (669,712) - (510,256) -
Exchange rate adjustments 2,324 (53,969) - - (51,645)
At September 30, 2020 3,603,600 10,426,781 - - 14,030,381
Net Book Value -
September 30, 2020 16,185,527 9,412,016 - 1,934,024 27,530,567
September 30, 2019 17,278,708 7,293,244 562,104 1,032,917 26,166,973
AC C EL ER ATE 242
242
Notes to the
September 30, 2020
September 30, 2020
30. Deferred Income Taxes
Deferred income taxes are calculated on all temporary differences under the liability method using a tax rate of 25%
for the Jamaican life insurance subsidiaries, 33⅓% for the Company and other Jamaican “regulated companies”, 21%
for the subsidiary incorporated in the United Kingdom, 30% for subsidiaries incorporated in Montserrat, St Lucia and
Trinidad (non-life), 22% for subsidiaries incorporated in Curacao, 32.5% for the subsidiary incorporated in St Vincent,
28% for the subsidiary incorporated in Grenada, and 25%, for all other subsidiaries with the exception of the
subsidiaries incorporated in Cayman Islands and Bermuda and the NCB Employee Share Scheme which are not
subject to income tax.
The net assets recognised in the statement of financial position are as follows:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
STATEMENTS
Deferred tax assets (14,634,857) (8,141,066) (5,366,278) (2,639,306)

STATEMENTS
Deferred tax liabilities 11,244,924 18,265,560 - -

Net (asset)/liability at end of year (3,389,933) 10,124,494 (5,366,278) (2,639,306)
FINANCIAL
FINANCIAL
The movement in the net deferred income tax balance is as follows:

THETHE

TOTO
- NOTES
2020 2019 2020 2019

- NOTES
$’000 $’000 $’000 $’000

STATEMENTS
Net liability/(asset) at beginning of year 10,124,494 (3,728,772) (2,639,306) (1,494,739)

STATEMENTS
Acquisition of subsidiary (Note 54) - 12,357,232 - -

Disposal of subsidiary - 33,490 - -
FINANCIAL
Deferred tax credited in the income

FINANCIAL
statement (Note 15) (7,575,721) (1,616,004) (2,726,972) (1,144,567)

Deferred tax credited to other
comprehensive income (Note 15) (5,938,706) 3,078,548 - -
Net (asset)/liability at end of year (3,389,933) 10,124,494 (5,366,278) (2,639,306)
The amounts shown in the statement of financial position included the following:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Deferred tax assets to be recovered
after more than 12 months (5,729,551) (1,683,962) - -
Deferred tax liabilities to be settled
after more than 12 months 7,656,625 8,607,057 - -
243
Notes to the
September 30, 2020
September 30, 2020
30. Deferred Income Taxes (Continued)
Deferred income tax assets and liabilities, prior to offsetting of balances, are due to the following items:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Deferred income tax assets:
Property, plant and equipment 2,567,264 1,016,812 - -
Investment securities classified as FVOCI 871,653 - - -
Credit Impairment Losses 1,691,833 198,696 - -
Pensions and other post-retirement benefits 2,081,968 2,072,823 - -
Interest payable 611,904 284,459 335,986 39,287
STATEMENTS
STATEMENTS
Unrealised foreign exchange losses 206,636 1,565,228 - 1,264,661
Unutilised tax losses 5,800,453 2,780,366 5,027,017 2,111,743
FINANCIAL
Other temporary differences 803,146 471,225 3,275 1,324
FINANCIAL
14,634,857 8,389,609 5,366,278 3,417,015
THE
Deferred income tax liabilities:
THE
TOTO
Future distribution 3,802,249 3,711,547 - -
- NOTES
- NOTES
Property, plant and equipment 899,087 724,910 - -
STATEMENTS
Intangible assets 218,452 3,901,967 - -
STATEMENTS
Investment securities at FVPL 1,426,617 3,048,968 - -
Investment securities classified as FVOCI 992,833 5,395,152 - -
FINANCIAL
FINANCIAL
Interest receivable 265,065 428,557 - -
Unrealised foreign exchange gains 13,528 777,711 - 777,709
Credit Impairment Losses 59,248 - - -
Other temporary differences 3,567,845 525,291 - -
11,244,924 18,514,103 - 777,709
Net deferred tax (asset)/liability (3,389,933) 10,124,494 (5,366,278) (2,639,306)
AC C EL ER ATE 244
244
Notes to the
September 30, 2020
September 30, 2020
30. Deferred Income Taxes (Continued)
The amounts recognised in the income statement are due to the following items:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Property, plant and equipment (409,374) (260,065) - -
Intangible assets (52,022) (170,666) - -
Investment securities (1,056,185) 364,656 - -
Credit Impairment Losses (1,959,483) (312,938) - -
Pensions and other post-retirement benefits (278,052) (248,916) - -
Future distributions (94,205) 709,606 - -
STATEMENTS
STATEMENTS
Interest receivable (264,780) 17,296 - -

Interest payable (327,410) 94,115 (296,698) 179,042
Accrued profit share 43,250 7,961 - -
FINANCIAL
FINANCIAL
Accrued vacation leave (22,504) - - -

Unrealised foreign exchange gains and
THETHE
189,492 (378,634) 486,952 150,288

losses
TOTO
Unutilised tax losses (2,853,181) (1,498,258) (2,915,273) (1,498,257)

- NOTES
- NOTES
Other temporary differences (491,267) 59,841 (1,953) 24,360

STATEMENTS
(7,575,271) (1,616,002) (2,726,972) (1,144,567)

STATEMENTS
The amounts recognised in other comprehensive income are due to the following items:
FINANCIAL
FINANCIAL

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Unrealised gains on FVOCI (7,223,490) 5,190,110 - -
Realised fair value gains on sale and
maturity of investments 1,060,555 (2,005,245) - -
Remeasurement of the post-employment
benefit obligation 224,229 (106,317) - -
(5,938,706) 3,078,548 - -
245
Notes to the
September 30, 2020
September 30, 2020
31. Other Assets

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Due from merchants, financial institutions, clients
and payment systems providers 3,206,368 5,289,174 - -
Prepayments 2,339,176 2,898,791 26 33,532
Receivable from executives 12,464,486 11,823,310 12,464,486 11,823,310
Due from policyholders 21,336,311 22,912,707 - -
Due from banks - - - -
Management fees & royalties - - 875,000 2,806,533
Repossessed assets 1,994,658 - - -
Other 8,627,337 8,959,508 367,499 360,323
49,968,337 51,883,490 13,707,011 15,023,698
STATEMENTS
STATEMENTS
The fair values of other assets approximate carrying values. The current portion of other assets is $36,826,805,000
(2019 - $40,060,180,000)
FINANCIAL
FINANCIAL
32. Due to Banks
THE
THE
TOTO
2020 2019 2020 2019
- NOTES
$'000 $'000 $'000 $'000
- NOTES
Items in course of payment 3,356,657 3,216,262 - -
STATEMENTS
Borrowings from other banks 26,511,050 19,364,501 13,117,877 12,560,650
STATEMENTS
Deposits from banks 57,017 53,605 - -
Other 1,469 1,863 - -
29,926,193 22,636,231 13,117,877 12,560,650
FINANCIAL
FINANCIAL
Interest payable 208,408 140,024 241,186 51,370
30,134,601 22,776,255 13,359,063 12,612,020
The current portion of due to banks is $10,741,529,000 (2019 - $15,695,841,000)
Items in the course of payment primarily represent cheques drawn by the Group which have been accounted for as a
deduction from its bank balances but which have not been presented on its bank accounts. These relate to accounts
held with banks outside of Jamaica and at central banks. Borrowings from banks are denominated in United States
dollars and have various maturity dates. These attract interest at 3.77 - 11.63% per annum.
The amounts included as cash equivalents in the statement of cash flows are as follows:
The Group
2020 2019
$'000 $'000
Total due to banks 30,134,599 22,776,255
Less: amounts with original maturities of
greater than 90 days (11,679,099) (7,619,266)
18,455,500 15,156,989
AC C EL ER ATE 246
246
Notes to the
September 30, 2020
September 30, 2020
33. Obligations Under Securitisation Arrangements
The Group
2020 2019
$'000 $'000
Diversified payment rights
Principal outstanding – US$250,000,000 (2019 – US$50,000,000) 35,392,925 6,707,100
Merchant voucher receivables
Principal outstanding – US$254,212,000 (2019 – US$308,649,000) 35,989,286 41,402,758
71,382,211 48,109,858
Unamortised transaction fees (775,084) (369,758)
70,607,127 47,740,100
STATEMENTS
STATEMENTS
Interest payable 476,830 565,723

Net liability 71,083,957 48,305,823
FINANCIAL
FINANCIAL
The current portion of obligations under securitisation arrangements amounted to $10,656,363,000

(2019 – $13,772,240,000).
THETHE
TOTO
Diversified Payment Rights

- NOTES
- NOTES
NCBJ has entered into a number of structured financing transactions involving securitisation of its Diversified
STATEMENTS
Payment Rights. A Diversified Payment Right (“DPR”) is a right of NCBJ to receive payments from correspondent
STATEMENTS
banks based overseas whenever a payment order is initiated by a person or entity situated overseas in favour of a
person or entity situated in Jamaica. Under these securitisation transactions, NCBJ assigns its rights to all present
FINANCIAL
and future DPRs to an offshore special purpose vehicle, Jamaica Diversified Payment Rights Company Limited
FINANCIAL
(“JDPR”) (Note 35), which then issues notes which are secured by DPR flows. The cash flows generated by the
DPRs are used by JDPR to make scheduled principal and interest payments to the note holders and any excess
cash is transferred to NCBJ, provided no early amortisation event or default has occurred under the terms of the
notes.
On May 30, 2013, NCBJ raised US$100 million through the DPR Securitisation (Series 2013-1 Notes). The
transaction was structured with an interest-only period of eighteen months and thereafter quarterly principal
amortisation on a straight line basis, beginning September 15, 2014 to final maturity on March 15, 2020. Interest is
due and payable on a quarterly basis calculated at three month US dollar LIBOR plus 675 basis points beginning
September 15, 2015.
On February 21, 2014, NCBJ increased the existing Series 2013-1 Notes by US$25 million on the same terms as
the existing Notes.
On April 25, 2014, the holders of the Series 2013-1 Notes exercised their option to extend the maturity of the Notes
by 12 months, adjusting the principal amortisation to commence on September 15, 2015 and final maturity to March
15, 2020.
On April 27, 2015, the holders of the Series 2013-1 Notes exercised their option to extend the maturity of the Notes
by 12 months, adjusting the principal amortisation to commence on September 15, 2016 and final maturity to March
16, 2020.
247
Notes to the
September 30, 2020
September 30, 2020
33. Obligations Under Securitisation Arrangements (Continued)
Diversified Payment Rights (continued)
On March 28, 2016, the holders of the Series 2013-1 Notes exercised their third and final option to extend the
maturity of the Notes by 12 months, adjusting the principal amortisation to commence on September 15, 2019 and
final maturity to March 15, 2021.
On September 30, 2020, NCBJ raised US$250 million through the DPR Securitisation (Series 2020-1 Notes). The
transaction was structured with an interest-only period of 3.25-year (13 quarters) and thereafter quarterly principal
amortisation on a straight line basis, beginning March 15, 2024 to final maturity on September 15, 2030. Interest is
due and payable on a quarterly basis calculated at a rate of 5.25% beginning December 15, 2020. Part proceeds
were used to retire the Series 2013-1 Notes.
Merchant Voucher Receivables
STATEMENTS
STATEMENTS
NCBJ has entered into a structured financing transaction involving securitisation of its Merchant Voucher
Receivables (MVR). This arrangement involves the sale of future flows due from Visa International Service
Association (Visa) and MasterCard International Incorporated (MasterCard) related to international merchant
FINANCIAL
vouchers acquired by NCBJ in Jamaica.
FINANCIAL
A merchant voucher is created when an international Visa or MasterCard cardholder pays for goods or services at
THE
THE
a NCB merchant. NCB approves the charge, pays the merchant under contractual terms, and submits the merchant
TOTO
voucher information to Visa or MasterCard for settlement. Upon approval and receipt of the charge information,
- NOTES
- NOTES
Visa or MasterCard is obligated to pay the amounts due, and this represents a receivable under the transaction.
STATEMENTS
STATEMENTS
Arising from this arrangement, NCBJ transferred its rights to all future receivables to an off-shore special purpose
company (SPC), Jamaica Merchant Voucher Receivables Limited (“JMVR”), which then issues notes which are
secured by the MVR flows. The cash flows generated by the MVR are used by JMVR to make scheduled principal
FINANCIAL
and interest payments to the note holders and any excess cash is transferred to NCBJ, provided no early
FINANCIAL
amortisation event or default has occurred under the terms of the notes.
On May 18, 2015, NCBJ raised US$250 million through the MVR securitisation transaction. The transaction was
structured on a mortgage-style amortisation basis with an interest-only period of twenty-eight months and thereafter
quarterly principal amortisation, beginning October 6, 2019 to final maturity on July 8, 2022. Interest is due and
payable on a quarterly basis calculated at a rate of 5.875% beginning July 7, 2015.
On November 21, 2016, NCBJ raised an additional US$150 million through the MVR securitisation transaction. The
transaction was structured on a mortgage-style amortisation basis with an interest-only period of forty-one months
and thereafter quarterly principal amortisation, beginning July 7, 2020 to final maturity on January 8, 2027. Interest
is due and payable on a quarterly basis calculated at a rate of 5.625% beginning January 9, 2019.
AC C EL ER ATE 248
248
Notes to the
September 30, 2020
September 30, 2020
34. Other Borrowed Funds

2020 2019 2020 2019
$'000 $'000 $'000 $'000
(a) Development Bank of Jamaica 4,479,957 4,529,782 - -
(b) Corporate notes 109,626,283 110,547,093 68,485,344 69,373,113
(c) Principal protected notes - 173,527 - -
(d) National Housing Trust 3,202,888 1,604,295 - -
(e) Other 6,517,876 6,871,058 6,370,726 6,036,391
(f) Finance lease obligations - 558,866 - -
123,827,004 124,284,621 74,856,070 75,409,504
Unamortised transaction fees (183,866) (302,207) (178,327) (280,563)
STATEMENTS
Interest payable 1,423,198 970,687 884,307 1,098,529

STATEMENTS
125,066,336 124,953,101 75,562,050 76,227,470

FINANCIAL
The current portion of other borrowed funds amounted to $32,427,928,000 (2019 – $26,501,308,000) for the Group
FINANCIAL
and nil for the Company.

THETHE
(a) The loans from Development Bank of Jamaica are granted in both Jamaican and US dollars and are utilised by
TOTO
the Group to finance customers with viable ventures in agricultural, agro-industrial, construction, manufacturing,
- NOTES
- NOTES
mining and tourism sectors of the economy. These loans are for terms up to 12 years and at rates ranging from
3.5% - 7%.
STATEMENTS
STATEMENTS
(b) Corporate notes are both unsecured and secured variable and fixed rate notes issued in a combination of
Jamaican dollars and United States dollars. The notes are repayable between 2020 and 2023. The fixed rate
FINANCIAL
notes attract interest between 4.25% and 9.75% and the variable rate notes attract interest based on weighted
FINANCIAL
average treasury bill yield plus 2.25% - 2.5% per annum.
(c) The Group has issued principal protected notes which entitle the holders to participate in positive returns on the
Euro Stoxx 50 or S&P 500 indices while providing a principal protection feature with or without an annual
coupon interest payment. If the return on the index is negative, the holder will obtain the principal invested for
the notes. Both the principal and interest payments are indexed to the US dollar. These notes are structured
products and comprise a fixed income element accounted for at amortised cost (disclosed above) and a
derivative (equity indexed option) element disclosed in Note 19.
(d) The loans from National Housing Trust (NHT) are granted as part of the Joint Financing Mortgage Programme.
Under the partnership agreement, NHT contributors are able to access their NHT loans directly from NCBJ at
the prevailing interest rate offered by NHT. These loans are for the terms up to 40 years at rates ranging from
0% - 6%.
(e) On May 17, 2019, NCB Global Holdings Limited extended a loan of US$45 million to NCB Financial Group
Limited. The loan is secured by a pledge of Guardian Holdings Limited shares. Interest is due and payable on a
quarterly basis calculated at rate of 7.65% per annum beginning August 17, 2019. Principal is due and payable
at maturity on May 17, 2022.
249
Notes to the
September 30, 2020
September 30, 2020
34. Other Borrowed Funds (Continued)
(f) The finance lease obligations are as follows:

The Group
2020 2019
$'000 $'000
Minimum lease payments under finance leases:
Not later than 1 year - 321,090
Later than 1 year and not later than 5 years - 279,897
- 600,987
Future finance charges - (42,121)
Present value of finance lease obligations - 558,866
STATEMENTS
STATEMENTS
The present value of finance lease obligations is as follows:
FINANCIAL
The Group
FINANCIAL
2020 2019
THE
$'000 $'000
THE
TOTO
- NOTES
Not later than 1 year - 292,368
- NOTES
Later than 1 year and not later than 5 years - 266,498
STATEMENTS
STATEMENTS
- 558,866
FINANCIAL
FINANCIAL
AC C EL ER ATE 250
250
Notes to the
September 30, 2020
September 30, 2020
35. Interests in Structured Entities
A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding control. Structured
entities are generally created to achieve a narrow and well defined objective with restrictions around their on-going
activities. An interest in a structured entity is any form of contractual or non-contractual involvement which creates
variability in returns arising from the performance of the entity for the Group. Such interests include holdings of debt
or equity securities and investment management agreements. Structured entities are assessed for consolidation in
accordance with the accounting policy set out in Note 2(f).
Consolidated Structured Entities
Securitisation Vehicles
NCBJ uses securitisation as a source of financing and a means of risk transfer. Securitisation of its DPR and MVR
(Note 33) is conducted through structured entities, JDPR and JMVR, exempted limited liability companies incorporated
under the laws of the Cayman Islands. The relationship between the transferred rights and the associated liabilities
is that holders of Notes may only look to cash flows from the securitised assets for payments of principal and interest
STATEMENTS
STATEMENTS
due to them under the terms of their Notes.
Mutual Funds
FINANCIAL
FINANCIAL
The Group manages a series of mutual funds through its trust and asset management subsidiaries, Guardian Group
Trust Limited and Guardian Asset Management and Investment Services Limited. The funds comprise four
THETHE
Caribbean investment based funds and six International investment based funds. These funds invest mainly in
equity securities, debt securities and cash and cash equivalents. Guardian Asset Management is the Trustee,
TOTO
- NOTES
Income and Paying Agent, Registrar and Fund Administrator of these Mutual Funds. Guardian Life of the Caribbean
- NOTES
acts in the capacity of Portfolio Manager.

STATEMENTS
STATEMENTS
As at the consolidated statement of financial position date, the Group has determined that it controls these mutual
funds, as defined in note 3, specific funds. Management has concluded that the contractual terms provide the Group
with power over the Mutual Funds and the Group’s aggregate interest in the Mutual Funds is significant.
FINANCIAL
FINANCIAL
Unconsolidated Structured Entity
The Group manages a Unit Trust Scheme comprising seven portfolios – the JMD Money Market Portfolio, the JMD
High Yield Portfolio, the High Yield Asset and Loans Portfolio, the Caribbean Equity Portfolio, the USD Money
Market Portfolio, the USD Indexed Bond Portfolio and the USD Bond Portfolio.
The Unit Trust has an independent trustee. The Group is the investment manager of the Unit Trust and is entitled to
receive management fees based on the assets under management. The Group also holds units in the Unit Trust.
251
Notes to the
September 30, 2020
September 30, 2020
35. Interests in Structured Entities (Continued)

Unconsolidated Structured Entity (continued)
The table below shows the total assets of the Unit Trust, the Group’s interest in and income arising from involvement
with the Unit Trust as well as the maximum exposure to loss. The maximum exposure to loss from the Group’s interests
represents the maximum loss that the Group could incur as a result of its involvement with the Unit Trust regardless
of the probability of the loss being incurred. The income from the Group’s interest includes recurring and non-recurring
fees and any mark-to-market gains/losses on a net basis.
The Group
2020 2019
$'000 $'000
Total assets of the Unit Trust 34,667,207 35,664,095
The Group’s interest – Carrying value of units held 142,516 186,545
Maximum exposure to loss 142,516 186,545

Liability to the Unit Trust in relation to investment in repurchase
STATEMENTS
obligations (included in repurchase obligations on the
STATEMENTS
consolidated statement of financial position) 1,710,794 2,090,433
Total income from the Group’s interests 765,306 720,448
FINANCIAL
FINANCIAL
The Group has not provided any non-contractual financial support during the period and does not anticipate providing
non-contractual support to the Unit Trust in the future.
THE
THE
36. Third Party Interests in Mutual Funds
TOTO
- NOTES
- NOTES
The Group
2020 2019
STATEMENTS
STATEMENTS
$'000 $'000
Opening balance 22,138,490 -
Arising on acquisition of subsidiary - 21,379,700
FINANCIAL
Share of net income 473,852 76,667
FINANCIAL
Unrealised losses (553,341) (108,366)
Net change in mutual fund holder balances 4,761,426 745,628
Distributions (370,562) (146,120)
Exchange rate adjustment 1,123,049 190,981
37. Investment Contract Liabilities

Investment contract liabilities carry floating rates of interest and therefore the carrying amounts approximate their
fair values
The Group
2020 2019
$'000 $'000
The movements in the liabilities arising from investment contracts are
summarized below:
Opening balance 39,257,656 -
Arising on acquisition on subsidiary (Note 54) - 39,395,293
Premiums received 4,330,908 1,319,633
Fees deducted from account balances (275,310) (179,095)
Account balances paid on surrender and other terminations in the year (4,212,105) (1,935,936)
Interest credited through income 1,232,184 511,225
Other movements (44,821) 8,986
Exchange rate adjustments 1,393,794 137,550
AC C EL ER ATE 252
252
Notes to the
September 30, 2020
September 30, 2020
38. Segregated Fund Liabilities
The assets listed below, included in the financial statements in aggregate, are managed by a subsidiary of the
Group on behalf of certain life insurance policyholders under the Blue Chip Fund, the MChip Fund, Eagle Growth
Fund, Mutual Growth Fund, Shelter Plus Fund, Guardian Universal Life Fund, Horizon Equity Fund, Guardian
Equity Fund, Guardian Money Market Fund, Guardian Long-term Growth Fund, Guardian Stabilisation Fund and
Guardian Foreign Currency Indexed Fund. The policyholders share all the rewards and risks of the performance
of the funds and the assets have been segregated for determining the policyholders’ interest in the funds.
The Group
2020 2019
$'000 $'000
Instruments:
Government of Jamaica securities 7,186,290 6,900,856
Equity securities and unit trust 5,504,224 7,588,444
STATEMENTS
STATEMENTS
Short term securities 991,018 792,444

Investment property 153,764 67,211
13,835,296 15,348,955
FINANCIAL
Other assets 419,882 1,200,576

FINANCIAL

THETHE
TOTO
39. Liabilities under Annuity and Insurance Contracts

- NOTES
- NOTES
The Group’s liabilities under annuity and insurance contracts arise from the operations of its life insurance subsidiaries
STATEMENTS
and its general insurance subsidiaries.

STATEMENTS
The life insurance subsidiaries issue life and health insurance and annuity contracts. These contracts insure human
life events (for example, death or survival) over a long duration.
FINANCIAL
FINANCIAL
The general insurance subsidiaries issue property and casualty insurance contracts. Casualty insurance contracts
protect the Group’s customers against the risk of causing harm to third parties as a result of their legitimate activities.
Damages covered include both contractual and non-contractual events. The typical protection offered is designed
for employers who become legally liable to pay compensation to injured employees (employers’ liability) and for
individual and business customers who become liable to pay compensation to third parties for bodily harm or
property damage (public liability). Property insurance contracts mainly compensate the Group’s customers for
damage suffered to their properties or for the value of property lost. Customers who undertake commercial activities
on their premises could also receive compensation for the loss of earnings caused by the inability to use the insured
properties in their business activities (business interruption cover).
253
Notes to the
September 30, 2020
September 30, 2020
39. Liabilities under Annuity and Insurance Contracts (Continued)
Liabilities under Annuity and Insurance Contracts comprise the following:
The Group
Restated
2020 2019
$’000 $’000
Liabilities under life and health insurance and annuity contracts 359,256,727 336,677,196
Liabilities under general insurance contracts 45,757,814 57,938,111
405,014,541 394,615,307
Liabilities under Life Insurance and Annuity Contracts (continued)
STATEMENTS
STATEMENTS
Insurance Contracts
Liabilities under insurance contracts comprise the following:
FINANCIAL
FINANCIAL
The Group
2020 2019
THE
THE
$'000 $'000
TOTO
- NOTES
Long-term insurance contracts:
- NOTES
With fixed and guaranteed terms and without DPF 201,753,905 195,114,628
STATEMENTS
With fixed and guaranteed terms and with DPF 1,702,519 1,957,155
STATEMENTS
Without fixed terms 140,170,082 129,210,475
343,626,506 326,282,258
FINANCIAL
Participating policyholders’ share of the surplus from long-term insurance
FINANCIAL
10,182,436 9,565,636
business
353,808,942 335,847,894
Short-term insurance contracts:
Property and casualty claims reported and loss adjustment expenses 18,310,360 22,857,819
Property and casualty claims incurred but not reported 6,825,966 13,046,204
Property and casualty unearned premiums 24,921,601 22,034,089
Group life 1,147,672 829,301
51,205,599 58,767,413
Total insurance liabilities 405,014,541 394,615,307
AC C EL ER ATE 254
254
Notes to the
September 30, 2020
September 30, 2020
The Group
2020 2019
$'000 $'000
Current 43,913,039 48,583,143
Non-current 361,101,502 346,032,164
Total gross insurance liabilities 405,014,541 394,615,307
Movements in long term insurance contracts
The Group
STATEMENTS
STATEMENTS
2020 2019
$'000 $'000
FINANCIAL
Long-term insurance contracts with fixed and guaranteed terms and without DPF
FINANCIAL
At beginning of year 195,114,628 9,096,092

THETHE
TOTO
Exchange rate adjustments 7,660,345 1,401,270

- NOTES
Premiums received (net) 9,396,024 3,071,809

- NOTES
Claims and benefits settled in the year (21,824,922) (7,371,848)

STATEMENTS
STATEMENTS
Accretion of interest 5,164,520 1,962,873

Increase in liabilities 14,774,393 3,623,362
Changes in assumptions (6,138,115) (952,968)
FINANCIAL
FINANCIAL
Normal changes (2,392,968) 820,536

At end of year 201,753,905 195,114,628
255
Notes to the
September 30, 2020
September 30, 2020
Insurance Contracts
The Group
2020 2019
$'000 $'000
Long-term insurance contracts with fixed and guaranteed terms and with
DPF
At beginning of year 1,957,155 -
Exchange rate adjustments 87,455 9,953
Changes in assumptions (248,744) (2,590)
STATEMENTS
STATEMENTS
Normal changes (93,347) (25,382)
At end of year 1,702,519 1,957,155
FINANCIAL
FINANCIAL
THE
The Group
THE
TOTO
2020 2019
- NOTES
- NOTES
$'000 $'000
Long-term insurance contracts without fixed terms
STATEMENTS
STATEMENTS
At beginning of year 129,210,475 22,167,141
FINANCIAL
Exchange rate adjustments 5,545,880 943,096
FINANCIAL
Premiums received (net) 3,846,094 3,603,877
Claims and benefits settled in the year (14,487,891) (7,448,757)
Increase in liabilities 11,866,656 5,399,611
Changes in assumptions 1,494,283 (4,279,360)
Normal changes 2,694,585 1,910,054
At end of year 140,170,082 129,210,475
The Group
2020 2019
$'000 $'000
Participating policyholders' share of the surplus from long-term insurance
business
At beginning of year 9,565,636 -
Exchange rate adjustments 485,248 84,970
Surplus/Deficit arising from operations (280,459) 57,679
Other movements 412,011 (89,039)
At end of year 10,182,436 9,565,636
AC C EL ER ATE 256
256
Notes to the
September 30, 2020
September 30, 2020

Policy assumptions
For insurance contracts, the assumptions used to determine the liabilities are updated at each reporting date to reflect
the latest best estimates. The assumptions used for valuing the insurance contracts disclosed in this note are as
follows:
Mortality and morbidity

Mortality estimates are made as to the expected number of deaths for each of the years in which the Group’s life
insurance subsidiaries are exposed to risk. These assumptions are based on North American standard industry
mortality tables adjusted to reflect recent local historical experience. Assumptions vary by sex, underwriting class and
type of insurance contract. The main source of uncertainty is that epidemics and wide ranging lifestyle changes, such
as eating, smoking and exercise habits could result in future mortality being significantly worse than in the past for age
groups in which the Group’s life insurance subsidiaries have significant exposure to mortality risk. Conversely,
improvements in longevity in excess of those allowed for in determining the liabilities, could result in a lessening of
STATEMENTS
STATEMENTS
future liabilities.
Morbidity relates to the frequency of illness, sickness and diseases contracted. The rate of recovery from such
FINANCIAL
afflictions is derived from industry experience studies, adjusted where appropriate from the Group’s life insurance
FINANCIAL
subsidiaries own experience.

THETHE
Investment yields
TOTO
The Group’s life insurance subsidiaries match assets and liabilities. The projected cash flows from these assets are
- NOTES
- NOTES
combined with future reinvestment rates derived from the current economic outlook and the Group’s life insurance
subsidiaries’ investment practices and policies to determine expected rates of return on these assets for all future
STATEMENTS
STATEMENTS
years and will vary by region, portfolio and currency. For the current valuation these rates of return are broadly
summarised as follows:
FINANCIAL
FINANCIAL
Jamaica Trinidad & Tobago Dutch Caribbean

Short term 3.00%-13.05% 4.51%- 5.70% 4.69%-5.12%
Medium term 3.07%-11.61% 4.34%-5.66% 4.98%-5.32%
Long term 2.93%-10.56% 4.81%-5.77% 5.45%-5.78%
The main source of uncertainty is the fluctuation in the economy. Lower yields would result in higher reserves and
reduced income.
257
Notes to the
September 30, 2020
September 30, 2020

Policy assumptions (continued)
Voluntary terminations and persistency
Persistency assumptions are made in relation to the time since inception that a policy exists before it lapses or is
surrendered. Lapses relate to termination of policies due to non-payment of premiums. Surrenders relate to voluntary
termination of policies by the policyholders. Policy terminations are based on the Group’s life insurance subsidiaries
own experience adjusted for expected future conditions. Statistical studies are performed in order to determine an
appropriate persistency rate and best estimates of future rates are determined by examining any trends in the data.
The main source of uncertainty derives from changes in policyholder behaviour as these relate to changes in economic
conditions.
Renewal expenses and inflation

Policy maintenance expenses are derived from the Group’s life insurance subsidiaries own internal cost studies
projected into the future with an allowance for inflation. The cost studies vary by subsidiary and are affected by the
STATEMENTS
STATEMENTS
economic conditions prevalent in each jurisdiction. The inflation rates assumed are summarised below:
Trinidad & Dutch
FINANCIAL
Jamaica Tobago Caribbean
FINANCIAL
Short term 3.00%-7.00% 3.50% (3.72%)
THE
THE
Medium term 4.11%-3.55% 3.50% 0.00%
TOTO
- NOTES
Long term 3.00% 3.50% 0.00%
- NOTES
STATEMENTS
Taxation
STATEMENTS
It is assumed that current tax legislation and rates continue unaltered.
Provisions for adverse deviations
FINANCIAL
FINANCIAL
The basic assumptions made in establishing policy liabilities are best estimates for a range of possible outcomes. To
recognise the uncertainty in establishing these best estimates, to allow for possible deterioration in experience and to
provide greater comfort that the reserves are adequate to pay future benefits, the appointed actuaries include a margin
in each assumption.
The impact of these margins is to increase reserves and so decrease the income that would be recognised on inception
of the policy. The Appointed Actuaries use assumptions which are considered conservative, taking into account the
risk profiles of the policies written.
AC C EL ER ATE 258
258
Notes to the
September 30, 2020
September 30, 2020
Changes in assumptions
Changes have been made to the assumptions used to determine the value of long term insurance liabilities of the
life insurance subsidiaries. The following tables present the effect of these changes:
The Group
2020 2019
$'000 $'000
For the Trinidadian life insurance subsidiaries:
Changes in expense assumptions 1,338,280 -
Changes in lapse assumptions 436,359 -
Changes in investment returns 1,882,723 (697,313)
Other assumptions (3,323,729) -
STATEMENTS
STATEMENTS
Decrease in liabilities 333,633 (697,313)

FINANCIAL
For the Jamaican life insurance subsidiaries:

FINANCIAL
Changes in expense assumptions (1,338,112) (812,264)

THETHE
Changes in lapse assumptions (71,554) (26,399)

TOTO
Changes in investment returns (3,337,190) (3,039,847)

- NOTES
- NOTES
Other assumptions (2,410,838) (659,095)

STATEMENTS
Decrease in liabilities (7,157,694) (4,537,605)

STATEMENTS
FINANCIAL
FINANCIAL
259
Notes to the
September 30, 2020
September 30, 2020
Sensitivity analysis
The following tables present the sensitivity of the value of insurance liabilities disclosed in this note to movements
in the assumptions used in the estimation of insurance liabilities. The sensitivities have been performed on the
assumption that all assumptions remain constant.
The Group
Change in Change in Change in Change in
variable liability variable liability
2020 2019
% $’000 % $’000
Long-term insurance contracts with fixed and
STATEMENTS
STATEMENTS
guaranteed terms and without DPF:
For the Trinidadian life insurance
subsidiaries:
FINANCIAL
+10.0% + 655,529 + 10.0% 586,039
FINANCIAL
Worsening of mortality
Improvement of annuitant mortality +0.5% 908,767 +0.5% 768,541
THE
Lowering of investment returns -1.0% 4,730,653 -1.0% 4,288,359
THE
TOTO
320,675 169,213
- NOTES
Worsening of base renewal expense level +5.0% +5.0%
- NOTES
Worsening of expense inflation rate +1.0% 676,122 +1.0% 415,511
STATEMENTS
STATEMENTS
+10.0% 1,318,162 +10.0% 1,112,282
FINANCIAL
FINANCIAL
Worsening of base renewal expense level +5.0% 552,943 +5.0% 712,739
For the Dutch Caribbean life insurance

subsidiaries:
Worsening of mortality +10.0% 310,647 +10.0% 307,922
Lowering of investment returns -10.0% 22,881 -10.0% 22,394
Worsening of base renewal expense level +10.0% +10.0% 64,095
AC C EL ER ATE 260
260
Notes to the
September 30, 2020
September 30, 2020
Sensitivity analysis (continued)
The Group
2020 2019
% $’000 % $’000
Long-term insurance contracts with fixed and
guaranteed terms and with DPF:
6,197 6,176
STATEMENTS
Worsening of mortality +10.0% + 10.0%

STATEMENTS

FINANCIAL
FINANCIAL

THETHE

TOTO
- NOTES
+10.0% 2,680 +10.0% 2,670

- NOTES
STATEMENTS
STATEMENTS

FINANCIAL
FINANCIAL
For the Dutch Caribbean life insurance subsidiaries:
Worsening of mortality +10.0% 862,878 +10.0% 660,773

Worsening of base renewal expense level +10.0% +10.0% 802,929
261
Notes to the
September 30, 2020
September 30, 2020
Sensitivity analysis (continued)
The Group
2020 2019
% $’000 % $’000
Worsening of mortality + 10.0% 1,426,896 + 10.0% 1,258,029
STATEMENTS
STATEMENTS
Improvement of annuitant mortality +5.0% 1,362,145 +5.0% 1,203,646
FINANCIAL
FINANCIAL
Worsening of expense inflation rate +1.0% 1,680,035 +1.0% 1,277,335
THE
THE
TOTO
- NOTES
- NOTES
Worsening of mortality +10.0% - +10.0% 81,059
STATEMENTS
+5.0% - +5.0% 56,989
STATEMENTS
Improvement of annuitant mortality
Lowering of investment returns -1.0% - -1.0% 1,287,693
Worsening of base renewal expense level +5.0% - +5.0% 62,949
FINANCIAL
FINANCIAL
AC C EL ER ATE 262
262
Notes to the
September 30, 2020
September 30, 2020
Liabilities under Short Term Contracts
The Group
2020 2019
$’000 $’000
Gross:
Claims outstanding 25,136,326 35,904,022
Unearned premiums 24,921,601 22,034,089
50,057,927 57,938,111
Reinsurance ceded
Claims outstanding (Note 27) (13,596,288) (22,609,110)
STATEMENTS
STATEMENTS
Unearned premiums (Note 27) (12,394,689) (10,637,058)

(25,990,977) (33,246,168)
FINANCIAL
Net:
FINANCIAL
Claims outstanding 11,540,038 13,294,912

THETHE
Unearned premiums 12,526,912 11,397,031

TOTO
24,066,950 24,691,943
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
- NOTES
STATEMENTS
263
Notes to the
September 30, 2020
September 30, 2020
Liabilities under Short term contracts (continued)
The movement in and composition of claims outstanding are as follows:
The Group The Group

2020 2019
Gross Reinsurance Net Gross Reinsurance Net
$’000 $’000 $’000 $’000 $’000 $’000
Notified claims 22,857,818 (19,269,214) 3,588,604 2,071,886 (8,526) 2,063,360
Claims incurred but not
reported 13,046,204 (3,339,896) 9,706,218 2,011,466 (2,129) 2,009,337
Balance at beginning of year 35,904,022 (22,609,110) 13,294,912 4,083,352 (10,655) 4,072,697
STATEMENTS
STATEMENTS
Disposal of subsidiary - - - (3,599,568) 36,239 (3,563,329)
Acquisition of subsidiary - - - 28,655,551 (17,258,576) 11,396,975
Exchange rate adjustment 1,987,778 (1,439,523) 548,255 (24,153) 18,572 (5,581)
FINANCIAL
FINANCIAL
Claims incurred (38,119,610) 16,470,972 (21,648,638) 15,875,639 (8,310,122) 7,565,517
THE
Claims paid 25,364,136 (6,018,627) 19,345,509 (9,086,799) 2,915,432 (6,171,367)
THE
TOTO
Balance at end of year 25,136,326 (13,596,288) 11,540,038 35,904,022 (22,609,110) 13,294,912
- NOTES
- NOTES
STATEMENTS
Comprising:
STATEMENTS
Notified claims 18,310,360 (9,706,469) 8,603,891 22,857,818 (19,269,124) 3,588,694
Claims incurred but not
FINANCIAL
reported 6,825,966 (3,889,819) 2,936,147 13,046,204 (3,339,986) 9,706,218
FINANCIAL
25,136,326 (13,596,288) 11,540,038 35,904,022 (22,609,110) 13,294,912
AC C EL ER ATE 264
264
Notes to the
September 30, 2020
September 30, 2020
39. Liabilities under Insurance and Annuity Contracts (Continued)
Liabilities under Short Term Contracts (continued)

The policy and claims liabilities were determined in accordance with accepted actuarial principles and as directed by
the respective regulator.
In determining the valuation, the actuary employed the Paid Loss Development method, the Incurred Loss
Development method, the Bornhuetter-Ferguson Paid Loss method, the Bornhuetter-Ferguson Incurred Loss method
and the Frequency-Severity method. In using the Paid/Incurred Loss Development method, ultimate losses are
estimated by calculating past paid/incurred loss development factors and applying them to exposure periods with
further expected paid/incurred loss development. The Bornhuetter-Ferguson Paid/Incurred Loss method is a
combination of the Paid/Incurred Loss Development method and a loss ratio method; however, these expected losses
are modified to the extent paid/incurred losses to date differ from what would have been expected based on the
selected paid/incurred loss development pattern. Finally, the Frequency-Severity method is calculated by multiplying
an estimate of ultimate claims with an estimate of the ultimate severity per reported claim.
STATEMENTS
STATEMENTS
The movement in and composition of unearned premiums are as follows:

The Group The Group
2020 2019
FINANCIAL
FINANCIAL

$’000 $’000 $’000 $’000 $’000 $’000
THETHE
Balance at beginning of
TOTO
22,034,089 (10,637,058) 11,397,031 2,724,427 (399,701) 2,324,726

year
- NOTES
- NOTES
Disposal of subsidiary - - - (2,960,189) 999,208 (1,960,981)

STATEMENTS
Acquisition of subsidiary - - - 23,453,888 (11,103,430) 12,350,458

STATEMENTS
Exchange rate adjustments 1,174,630 (396,679) 777,951 87,117 (255,627) (168,510)

Net increase/(release) in
1,712,882 (1,360,952) 351,930 (1,271,154) 122,492 (1,148,662)
FINANCIAL
the period
FINANCIAL
Balance at end of year 24,921,601 (12,394,689) 12,526,912 22,034,089 (10,637,058) 11,397,031
Comprising, by type of
business:
Liability insurance
1,549,760 (671,286) 878,474 1,868,055 (863,597) 1,004,458
contracts
Motor insurance contracts 4,533,031 (404,434) 4,128,597 4,074,856 (136,837) 3,938,019
Pecuniary loss insurance
106,054 (61,129) 44,925 349,962 (139,427) 210,535
contracts
Property insurance
15,448,656 (10,625,012) 4,823,644 12,908,491 (8,864,776) 4,043,715
contracts
Health insurance contracts 1,916,933 (164,357) 1,752,636 2,063,708 (128,827) 1,934,881
Marine insurance contracts 1,185,898 (437,657) 748,241 769,017 (503,594) 265,423
Personal accident
181,269 (30,814) 150,455 - - -
insurance contracts
24,921,601 (12,394,689) 12,526,912 22,034,089 (10,637,058) 11,397,031
265
Notes to the
September 30, 2020
September 30, 2020
39. Liabilities under Insurance and Annuity Contracts (Continued)
Liabilities under Short Term Contracts (continued)
The movement in and composition of Group Life contracts are as follows:

The Group The Group
2020 2019
$’000 $’000 $’000 $’000 $’000 $’000
Balance at beginning of year 829,301 - 829,301 37,504 (15,509) 21,995
Acquisition of subsidiary - - - 694,694 6,192 700,886
Claims settled during the year (836,564) 41,241 (795,323) (334,908) 61,387 (273,521)
Exchange rate adjustment 69,417 - 69,417 32,764 (39,379) (6,615)
STATEMENTS
STATEMENTS
Increase in liabilities 1,085,517 (41,241) 1,044,276 399,247 (12,691) 386,556
Balance at end of year 1,147,671 - 1,147,671 829,301 - 829,301
FINANCIAL
FINANCIAL
40. Post-employment Benefits
THE
Liabilities recognised in the statement of financial position are as follows:
- NOTES
- NOTES THE
TOTO
The Group
2020 2019
STATEMENTS
STATEMENTS
$'000 $'000
Pension schemes 476,825 1,156,955
FINANCIAL
FINANCIAL
Other post-employment benefits 9,254,234 8,243,783
9,731,059 9,400,738
The amounts recognised in the income statement are as follows:
The Group
2020 2019
$'000 $'000
Pension schemes (Note 12) 511,179 219,388
Other post-employment benefits (Note 12) 689,373 808,089
1,200,552 1,027,477
The amounts recognised in the statement of comprehensive income are as follows:
The Group
2020 2019
$'000 $'000
Pension schemes 679,031 442,073
Other post-employment benefits (35,856) 151,498
643,175 593,571
AC C EL ER ATE 266
266
Notes to the
September 30, 2020
September 30, 2020
40. Post-employment Benefits (Continued)
(a) Pension schemes

The Group’s subsidiaries have established the following pension schemes covering all permanent employees.
The assets of funded plans are held independently of the Group’s assets in separate trustee administered
funds. The Group’s pension schemes are regulated by the respective regulators in the jurisdictions where they
operate.
National Commercial Bank Staff Pension Fund 1986

This is a defined benefit scheme, which comprises the following pension funds which were merged on
September 30, 1999:
• National Commercial Bank Staff Pension Fund 1975 (NCB 1975 Fund)
• National Commercial Bank Staff Pension Fund 1986 (NCB 1986 Fund)
• Mutual Security Bank Superannuation Scheme (MSB Fund)
STATEMENTS
• Computer Service and Programming Limited Pension Fund (CSP Fund).

STATEMENTS
Members’ rights under each of the funds as at the date of merger were fully preserved in the NCB 1986 Fund
and members of the merged funds receive pension benefits from the NCB 1986 Fund in respect of service up
FINANCIAL
FINANCIAL
to the date of merger. The scheme was closed to new members effective October 1, 1999.
THETHE
No asset has been recognised in relation to the Bank’s defined benefit scheme as, under the rules of the scheme,
TOTO
the employer would not benefit from any surplus on the winding up of the scheme. No additional current service
- NOTES
cost has been incurred since closure of the scheme and the employer only makes a nominal contribution.
- NOTES
STATEMENTS
National Commercial Bank Staff Pension Fund 1999

STATEMENTS
This is a defined contribution scheme which is funded by payments from employees and by the employers of
the relevant companies. Participating Group companies contribute an amount equivalent to 5% of employees’
salary to the scheme each pay cycle and employees must contribute at least 5% and up to a maximum of
FINANCIAL
FINANCIAL
15%. Contribution to the scheme for the year was $438,765,000 (2019 – $452,137,000).
GHL
GHL operates a number of defined benefit and defined contribution plans, the assets of which are held in
separate trustee-administered funds. The plans are generally funded by payments from employees and by the
relevant Group companies after taking account of the recommendations of the external qualified actuaries.
The plans are governed by trust and/or fund deeds and rules and are administered in accordance with the
laws of the jurisdiction in which the plan resides. Responsibility for the governance of the plans, including
investment strategies, lies with the Board of Trustees/Foundation. Contribution to the scheme for the year was
$193,261,000.
267
Notes to the
September 30, 2020
September 30, 2020
(a) Pension schemes (continued)
The amounts recognised in the statement of financial position in respect of defined benefit pension schemes are
as follows:
2020 2019
NCBJ GHL NCBJ GHL AGIC
$'000 $'000 $'000 $'000 $'000
Present value of 1,317,726
31,243,758 20,556,590 32,911,272 19,463,022
funded obligations
Fair value of plan (1,413,234)
(33,706,365) (20,079,765) (41,291,898) (18,306,067)
assets
(Over)/under – (95,508)
(2,462,607) 476,825 (8,380,626) 1,156,955
funded obligations
Disposal of 95,508
STATEMENTS
- -
subsidiary
STATEMENTS
Limitation on -
2,462,607 - 8,380,626 -
pension assets
FINANCIAL
- 476,825 - 1,156,955 -
FINANCIAL
The schemes are valued by independent actuaries annually using the projected unit credit method; the latest such
THE
THE
valuation being carried out as at September 30, 2020 for the Bank and GHL schemes.
TOTO
- NOTES
- NOTES
The movement in the defined benefit obligation is as follows:
2020 2019
STATEMENTS
STATEMENTS
$'000 $'000 $'000 $'000 $’000
At beginning of year 32,911,272 19,463,022 27,481,763 - 1,195,080
FINANCIAL
FINANCIAL
Acquisition of subsidiary - - - 18,492,275 -
Exchange - 1,002,378 - 163,435 -
Employee’s contributions - 26,189 - 18,350 40,778
Service cost - 466,797 - 159,928 46,020
Interest cost 2,075,679 958,130 1,999,509 489,508 89,485
Remeasurements:
Experience losses/(gains) 128,954 (819,188) 2,791,549 212,965 (48,768)
(Gains)/losses from
changes in financial (1,916,652) 301,101 1,831,742 482,216 106,228
assumptions
Demographic
- (21) 449,990 - (69,156)
assumptions
Benefits paid (1,955,495) (841,817) (1,643,281) (555,655) (41,941)
Disposal of subsidiary - - - - (1,317,726)
At end of year 31,243,758 20,556,591 32,911,272 19,463,022 -
AC C EL ER ATE 268
268
Notes to the
September 30, 2020
September 30, 2020
The movement in the fair value of plan assets is as follows:
2020 2019
$'000 $’000 $'000 $'000 $'000
At beginning of year 41,291,898 18,306,067 32,837,947 - 1,148,632
Acquisition of - -
- - 17,865,374
subsidiary
Exchange - 935,648 - 152,117 -
Interest on plan assets 2,620,420 923,337 2,401,223 363,430 87,032

STATEMENTS
STATEMENTS
Remeasurement -
return on plan
assets, excluding
FINANCIAL
FINANCIAL
amounts included
in interest on plan
assets (8,250,458) 160,924 7,696,009 90,056 151,355
THETHE
Contributions - 606,326 - 266,720 77,229

TOTO
- NOTES
Administration fees - (9,588) - 124,026 (9,073)

- NOTES
Benefits paid (1,955,495) (842,949) (1,643,281) (555,656) (41,941)

STATEMENTS
STATEMENTS
Disposal of subsidiary - - - - (1,413,234)
At end of year 33,706,365 20,079,765 41,291,898 18,306,067 -

FINANCIAL
FINANCIAL
2020 2019
$'000 $'000 $'000 $'000 $'000
Current service cost - 466,797 - 159,928 46,020
Administration fees - 9,588 - - 9,073
Net interest expense - 34,794 - 1,913 2,454
Total, included in staff costs - 511,179 - 161,841 57,547
269
Notes to the
September 30, 2020
September 30, 2020
The amounts recognised in other comprehensive income are as follows:
2020 2019
$'000 $'000 $'000 $'000 $'000
Loss/(gain) on present
value of funded
obligations (1,787,698) 518,108 5,073,281 695,181 (11,696)
Gain on fair value of plan
assets 8,250,458 160,923 (7,696,009) (90,056) (151,355)
STATEMENTS
Change in effect of asset
STATEMENTS
ceiling (6,462,760) - 2,622,728 - -
Net loss/(gain) - 679,031 - 605,125 (163,051)
FINANCIAL
FINANCIAL
Plan assets for the NCBJ defined benefit pension scheme are comprised as follows:
THE
THE
2020 2019
TOTO
- NOTES
$’000 % $’000 %
- NOTES
Debt securities 19,188,075 56.93 25,973,657 62.90
STATEMENTS
STATEMENTS
Equity securities 11,415,498 33.87 12,532,930 30.35
Real estate and other 3,102,792 9.20 2,785,311 6.75
FINANCIAL
33,706,365 100.00 41,291,898 100.00
FINANCIAL
These plan assets included:
- Ordinary stock units of the Company with a fair value of $9,851,894,000 (2019 – $13,859,766,000).
- Repurchase obligations, promissory notes and lease obligations of the Group aggregating $455,000,000
(2019 –$489,149,000)
- Properties occupied by the Group with a fair value of $639,750,000 (2019 - $695,800,000).
AC C EL ER ATE 270
270
Notes to the
September 30, 2020
September 30, 2020
Plan assets for the GHL defined benefit pension scheme are comprised as follows:
2020 2019
$’000 % $’000 %
Debt securities 11,006,167 54.81% 9,772,584 53.38%
Equity securities 3,069,312 15.29% 2,878,411 15.72%
Real estate and other 6,004,287 29.90% 5,655,072 30.89%
20,079,766 100.00% 18,306,067 100.00%
STATEMENTS
Expected contributions to NCBJ’s and GHL’s defined benefit pension schemes for the year ending
STATEMENTS
September 30, 2021 are nil and $608,629,000 respectively.
The principal actuarial assumptions used are as follows:

FINANCIAL
FINANCIAL
2020 2019
THETHE
NCBJ GHL NCBJ AGIC

TOTO
- NOTES
Discount rate 9.00% - 6.50% 3.38%- 6.33%

- NOTES
Future salary increases 6.00% - 5.00% 0% - 3.6%

STATEMENTS
Future pension increases 5.00% - 3.00% 3.5%

STATEMENTS
Post-employment mortality for active members and mortality for pensioners is based on the 1994 Group Annuity
FINANCIAL
Mortality tables (GAM (94) (U.S. mortality tables) with no age setback.
FINANCIAL
The average duration of the defined benefit pension obligation at September 30, 2020 is
11.1 years (2019 – 11.7 years) for NCBJ’s defined benefit scheme and 15 years for the GHL scheme.
271
Notes to the
September 30, 2020
September 30, 2020

The sensitivity of the defined benefit pension obligation to changes in the principal assumptions is as follows:
NCBJ
Increase/(decrease) in defined benefit obligation
Change in Increase in Decrease in
Assumption Assumption Assumption
$’000 $’000
Discount rate 1% (3,022,859) 3,622,439
Future salary increases 1% 84,490 (81,263)
Future pension increases
STATEMENTS
1% 3,428,820 (2,916,323)
STATEMENTS
Life expectancy 1 year 923,000 (970,000)
FINANCIAL
GHL
FINANCIAL
Increase/(decrease) in defined benefit obligation
THE
THE
TOTO
- NOTES
- NOTES
$’000 $’000
STATEMENTS
Discount rate
STATEMENTS
1% (2,462,756) 3,106,052
Future salary increases 1% 500,774 (439,771)
FINANCIAL
FINANCIAL
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
AC C EL ER ATE 272
272
Notes to the
September 30, 2020
September 30, 2020
(b) Other post-employment benefits

In addition to pension benefits, the Group offers medical and life insurance benefits that contribute to the health
care and life insurance coverage of employees and beneficiaries after retirement. The method of accounting and
frequency of valuations are similar to those used for defined benefit pension schemes.
In addition to the assumptions used for pension schemes, the main actuarial assumption is a long-term increase
in health costs of 2.0 percentage points above CPI per year (2019 – 1.5 percentage points above CPI).
The average duration of the other post-employment benefits obligation at September 30, 2020 is 18.6 years
for the Bank, and between 14.8 & 22.7 years for GHL.
The amounts recognised in the statement of financial position are as follows:

STATEMENTS
The Group
STATEMENTS
2020 2019
$'000 $'000
FINANCIAL
FINANCIAL
Present value of unfunded obligations 9,254,324 8,243,783

THETHE
The movement in the defined benefit obligation is as follows:

TOTO
The Group
- NOTES
- NOTES
2020 2019
$'000 $'000
STATEMENTS
STATEMENTS
At beginning of the year 8,243,783 5,456,525

Acquisition of subsidiary - 2,488,666
Disposal of subsidiary - (268,520)
FINANCIAL
FINANCIAL
Curtailment 84,191 -
Employer contributions (89,537) -
Service costs 187,114 367,570
Interest cost 515,957 440,519
Remeasurements:
Experience losses (4,278) 71,128
Demographic assumptions 837,546 152,703
Gains from changes in financial assumptions (561,221) (72,333)
Exchange movement 138,657 21,094
Benefits paid (97,888) (413,569)
At end of year 9,254,324 8,243,783

The Group
2020 2019
$'000 $'000
Service cost 173,416 367,570
Net interest expense 515,957 440,519
Total, included in staff costs (Note 12) 689,373 808,089
273
Notes to the
September 30, 2020
September 30, 2020
(b) Other post-employment benefits (continued)

The sensitivity of the other post-employment benefit obligation to changes in the principal assumptions is as
follows:
NCBJ Increase/(decrease) in obligation
$’000 $’000
Discount rate 1% (964,587) 1,252,714
Medical cost inflation 1% 1,248,952 (977,524)
STATEMENTS
GHL Increase/(decrease) in obligation
STATEMENTS
FINANCIAL
$’000 $’000
FINANCIAL
Discount rate 1% (429,890) 552,964
THE
Medical cost inflation 1% 539,984 (427,608)
THE
TOTO
- NOTES
- NOTES
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
STATEMENTS
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
STATEMENTS
(c) Risks associated with pension plans and post-employment schemes
FINANCIAL
Through its defined benefit pension and other post-employment benefit schemes, the Group is exposed to a
FINANCIAL
number of risks, the most significant of which are detailed below. The Group does not use derivatives to
manage its plan risk. Investments are well diversified, such that failure of any single investment would not
have a material impact on the overall level of assets.
Asset volatility risk

The schemes’ liabilities are calculated using a discount rate set with reference to sovereign bond yields; if the
schemes’ assets underperform this yield, this will create a deficit.
Interest rate risk

The schemes’ liabilities are calculated using a discount rate set with reference to sovereign bond yields. A
decrease in sovereign bond yields will increase the schemes’ liabilities, although this will be partially offset by
an increase in the value of the schemes’ fixed-rate bond holdings.
Salary risk
The present values of the defined benefit schemes’ liabilities are calculated by reference to the future salaries
of participants. As such, an increase in the salaries of participants will increase the schemes’ liabilities.
Longevity risk
The majority of the schemes’ obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the schemes’ liabilities.
AC C EL ER ATE 274
274
Notes to the
September 30, 2020
September 30, 2020
41. Other Liabilities

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Accrued staff benefits 4,554,391 6,851,340 283,070 273,787
Due to customers, merchants and
clients 17,601,580 15,748,814 - -
Accrued other operating expenses 33,816,674 16,895,473 340,081 574,068
Due to reinsurers 10,989,045 13,607,006 - -
Due to Government 288,976 684,193 - -
Other 3,397,071 790,387 - -
70,647,737 54,577,213 623,151 847,855
STATEMENTS
STATEMENTS
42. Share Capital

FINANCIAL
FINANCIAL
2020 2019 2020 2019

$'000 $'000 $'000 $'000
THETHE
Authorised – unlimited
TOTO
Issued and fully paid up –

- NOTES
2,466,762,828 ordinary stock units of

- NOTES
no par value 153,827,330 153,827,330 153,827,330 153,827,330

STATEMENTS
Treasury shares (15,150,201) (10,756,253) (561,635) (561,635)

STATEMENTS
138,677,129 143,071,077 153,265,695 153,265,695

FINANCIAL
As at September 30, 2020 entities within the Group held NCBFG ordinary stock units totalling 95,015,105
FINANCIAL
(2019: 70,676,888) and 3,359,929 (2019: 3,359,929), respectively. These shares are held by the NCB Employee
Share Scheme, a custodian appointed by NCB Financial Group Limited and entities controlled by Guardian Holdings
Limited and the Company reports them as Treasury Shares.
The NCB Employee Share Scheme was established in 1986 to acquire certain shares of NCB Group Limited, the
then holding company for the Group, for the beneficial interest of eligible employees. As at September 30, 2020, the
scheme held 1,255,751 (2019: 1,543,478) stock units of the Company’s ordinary stock.
As at September 30, 2020 a total of 29,926,644 (2019: 3,359,929) stock units of the Company’s ordinary stock were
held by a custodian on behalf of the Company and one of its subsidiaries. The stock units are held for distribution as
incentives. During the year the custodian acquired an additional 26,566,735 units.
275
Notes to the
September 30, 2020
September 30, 2020
43. Impairment Tests for Goodwill
The Group determines whether goodwill is impaired at least on an annual basis or, or sooner when events or
changes in circumstances indicate that the carrying value may be impaired. This requires an estimation of the
recoverable amount of the cash generating unit (CGU) to which the goodwill is allocated. Goodwill relating to the
acquisition of GHL has been provisionally allocated to the entire GHL Group, as mentioned in Note 54.
The recoverable amount is usually determined by reference to the value in use. Estimating the value in use requires
the Group to make an estimate of the expected future cash flows from the CGU and also to choose an appropriate
discount rate in order to calculate the present value of those future cash flows. These calculations use pre-tax cash
flow projections based on financial budgets approved by management.
Key assumptions used by management include:
• Revenue growth of 6%, 16% and 11% in 2019, 2020 and 2021.
STATEMENTS
• A decrease in reinsurance levels from historical levels of 28% to 23% by 2021. Management's expert has
STATEMENTS
sensitised this to 26.5%.
• A claims ratio of 70%, which has been normalised to 72% by management's experts.
• Projected declines in expenses between 15% and 1%, adjusted by management's experts to between 5%
FINANCIAL
FINANCIAL
and 0%.
• Terminal growth rate of 2.5%.
THE
• Pre-tax discount rate of 15.7%.
- NOTES
- NOTES THE
TOTO
Based on the results of the test performed, there was no evidence of impairment.
FINANCIAL
STATEMENTS
AC C EL ER ATE 276
276
Notes to the
September 30, 2020
September 30, 2020
44. Fair Value and Capital Reserves
The Group
2020 2019
$’000 $’000
Fair value reserve 1,796,959 10,284,721
Capital reserve (excluding scheme of arrangement) 10,419,701 2,874,225
12,216,660 13,158,946
Reserves from the scheme of arrangement (147,034,858) (147,034,858)
(134,818,198) (133,875,912)
Capital reserve comprises:
Realised –
STATEMENTS
STATEMENTS
Surplus on revaluation of property, plant and

92,991 92,991
equipment
Retained earnings capitalised 98,167 98,167
FINANCIAL
FINANCIAL
Share redemption reserve 1,077,382 1,077,382

Unrealised –
THETHE
Translation reserve 9,261,931 3,819,552

TOTO
- NOTES
Surplus on revaluation of property, plant and

- NOTES
153,022 153,022
equipment
STATEMENTS
Share of movement in reserves of associate (1,170,274) (2,464,914)

STATEMENTS
Other 906,482 98,025

10,419,701 2,874,225
FINANCIAL
FINANCIAL
Reserve from the scheme of arrangement (147,034,858) (147,034,858)

(136,615,157) (144,160,633)
45. Loan Loss Reserve
This is a non-distributable reserve for NCBJ representing the excess of the provision for credit losses determined
using the Bank of Jamaica’s regulatory requirements over the amount determined under IFRS (Note 21).
46. Banking Reserve Fund
This fund is maintained in accordance with the Banking Services Act, 2014, enacted in Jamaica, which requires that
a minimum of 15% of the net profits, as defined by the Act, of NCBJ be transferred to the reserve fund until the amount
of the fund is equal to 50% of the paid-up capital of the Bank and thereafter 10% of the net profits until the amount of
the fund is equal to the paid-up capital of the Bank. The amount of the fund has surpassed the paid-up capital of the
Bank and therefore no further mandatory transfers were required.
The Financial Institutions Act, 2008, enacted in Trinidad and Tobago, which is applicable for the Group’s regulated
subsidiary in that country, requires that a minimum of 10% of the profit for the year in each period be transferred to
a statutory reserve account until the balance on this reserve is not less than the paid-up capital.
277
Notes to the
September 30, 2020
September 30, 2020
47. Retained Earnings Reserve
The Banking Services Act 2014 permits the transfer of any portion of the Bank’s net profit to a retained earnings
reserve. This reserve constitutes a part of the capital base and regulatory capital of the Bank.
48. Cash Flows from Operating Activities
Note The Group

2020 2019
$’000 $’000
Net profit 26,883,412 31,164,938
Adjustments to reconcile net profit to net cash flow provided by operating
activities:
Depreciation 29 3,039,450 2,712,625
Amortisation of intangible assets 28 5,490,021 4,228,806
STATEMENTS
STATEMENTS
Credit impairment losses 13 10,284,994 4,824,734
Gain on disposal of subsidiary 54 - (2,626,425)
Gains on remeasurement and disposal of associate 24 - (5,620,723)
FINANCIAL
Share of after tax profits of associates 24 (312,391) (2,897,176)
FINANCIAL
Interest income 6/8 (74,421,878) (67,177,716)
THE
Interest expense 6 21,932,169 20,473,144
THE
TOTO
Income tax expense 15 690,064 6,423,458
- NOTES
Unrealised exchange gains on securitisation arrangements (42,883) (1,940,791)
- NOTES
Amortisation of upfront fees on securitisation arrangements (405,327) 157,227
STATEMENTS
Amortisation of upfront fees on other borrowed funds 118,340 -
STATEMENTS
Unrealised exchange losses on other borrowed funds 2,784,722 100,482
Change in post-employment benefit obligations 40 1,240,881 1,027,278
FINANCIAL
Foreign exchange gains 8 989,158 (2,991,415)
FINANCIAL
Gain on disposal of property, plant and equipment and intangible assets (81,526) (66,708)
Fair value losses/(gains) on investment property 25 923,292 (448,565)
Fair value losses on derivative financial instruments 8 (653,735) (25,673)
Changes in operating assets and liabilities:
Statutory reserves at Central Bank 1,764,835 2,825,135
Pledged assets included in due from banks 923,105 (3,814,523)
Restricted cash included in due from banks (175,717) 171,375
Reverse repurchase agreements 1,965,463 (2,071,307)
Loans and advances (63,781,719) (103,450,934)
Customer deposits 67,564,018 19,944,325
Liabilities under annuity and insurance contracts 10,399,234 7,918,636
Other 28,616,376 (17,388,022)
55,249,725 (117,457,167)
Interest received 112,196,486 123,126,137
Interest paid (18,401,243) (20,430,049)
Income tax paid (5,536,204) (5,669,274)
143,508,764 (20,428,353)
Net cash provided by operating activities 170,392,176 10,736,585
AC C EL ER ATE 278
278
279
Notes to the
September 30, 2020
September 30, 2020
49. Related Party Transactions and Balances
Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operational
decisions. Related party transactions are in the ordinary course of business. The volumes of related party transactions, outstanding balances at the year end
and related expenses and income for the year are as follows:
The Group
Companies controlled by
Parent and companies Directors and key directors and related by
controlled by major Associated companies of the management personnel (and virtue of common
shareholder Group their families) directorship
2020 2019 2020 2019 2020 2019 2020 2019
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Loans and advances
Balance at September 30 17,624 27,725 1,804,931 1,556,222 1,748,241 1,785,805 3,004,476 1,268,390
Interest income earned 1,847 2,669 25,965 1,761 105,037 80,712 86,919 56,802
Investment securities
Balance at September 30 - - 7,341,170 6,763,211 - - 4,045,592 1,820,362
Interest income earned - - 289,060 209,749 - - 24,781 7,063
Reverse repurchase agreements

Balance at September 30 - - - - - - - -
Interest income earned - - - 36,364 - - - -
Other assets
Balance at September 30 - - - - 12,430,707 11,826,016 371,720 804,321
Fee and commission income 35,409 63,012 116 1,978 10,082 73,963 600,636 557,435
Other operating income - - - - 4,001 270 960,345 1,055,270
Dividend income - - 20,772 731,336 - - 115,160 34,161

Notes to the
September 30, 2020
September 30, 2020
49. Related Party Transactions and Balances (Continued)
The Group (Continued)

Companies controlled by
Parent and companies Directors and key directors and related by
controlled by major Associated companies of the management personnel virtue of common
shareholder Group (and their families) directorship
2020 2019 2020 2019 2020 2019 2020 2019
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Customer deposits
Balance at September 30 221,614 874,950 136,341 53,383 3,516,602 1,765,463 14,191,114 10,900,947
Interest expense 1,291 2,918 68 2,250 15,926 8,866 62,903 70,129
Repurchase agreements
Balance at September 30 705,706 514,258 - - 595,838 717,991 471,048 1,017,497
Interest expense 19,641 10,267 - 125,630 7,659 8,983 14,603 23,828
Borrowed Funds
Balance at September 30 - - - - 414,858 404,876 3,127 45,689
Interest expense - - - - 19,948 21,062 148 2,354
Other liabilities
Balance at September 30 - - - - 102,490 100,961 7,503 2,706
Operating expenses 51,895 194,305 - 5,592 533,398 756,869 1,757,998 1,472,660

www.myncb.com
280
FINANCIAL
STATEMENTS -- NOTES
NOTES TO
TO THE
281
Notes to the
September 30, 2020
The Company
Parent, subsidiaries and Companies controlled by directors
companies controlled by Directors and key management personnel and related by virtue of common
major shareholder (and their families) directorship
2020 2019 2020 2019 2020 2019
$'000 $'000 $'000 $'000 $'000 $'000
Loans and advances
Balance at September 30 251,930 251,852 - - - -
Interest income earned 14,414 1,930 - - - -
Balance at September 30 7,114,685 7,115,932 - - - -
Deposits with related party

Balance at September 30 2,709,773 3,795,678 - - - -
Other assets
Balance at September 30 2,338,473 2,833,413 12,464,486 11,823,310 - -
Fee and commission income 4,393,467 7,226,241 - - - -

Dividend income 14,652,184 9,720,304 - - - -
Borrowed funds
Balance at September 30 34,168,434 37,450,244 414,858 404,876 3,127 45,689
Interest expense 2,303,351 2,063,823 19,948 21,062 148 2,354
Other liabilities
Balance at September 30 1,544,540 9,361 - - - -
Operating Expenses 303,597 335,393 17,772 15,972 10,374 6,990

Notes to the
September 30, 2020
September 30, 2020

2020 2019 2020 2019
$'000 $'000 $'000 $'000
Key management compensation:
Salaries and other short-term benefits 7,713,878 5,666,931 4,333,624 3,533,729
Post-employment benefits 586,190 206,777 4,340 17,908
8,300,068 5,873,708 4,337,964 3,551,637
Directors’ emoluments:
Fees 24,336 24,555 12,241 12,139
Management remuneration:
STATEMENTS
STATEMENTS
Share benefits 1,266,006 1,965,733 1,266,006 1,965,733
Salaries and other benefits 1,858,815 1,089,945 1,858,815 1,089,945
3,124,821 3,055,678 3,124,821 3,055,678
FINANCIAL
FINANCIAL
The compensation of executive directors is partially settled through shares of the Group, rights to which accrue
THE
THE
immediately to the directors. Additionally, amounts have been advanced to executive directors for the purpose of
TOTO
acquisition of shares in the Group. The balance outstanding in relation to these advances as at September 30,
- NOTES
- NOTES
2020 is $12,464,486,000 (Note 31). These amounts are being amortised for periods of up to 9 years. The
unamortised portion on these advances is repayable once the respective executive leaves the Group prior to the
STATEMENTS
STATEMENTS
end of the 9-year period. The total amortised for the current year is $980,437,000, which is included in share
benefits.
FINANCIAL
50. Financial Risk Management
FINANCIAL
The Group takes an enterprise-wide approach to the identification, measurement, monitoring, reporting and
management of all its risks. The principal financial risks faced by the organisation are identified as: credit, market,
interest rate and liquidity risks.
The Group's risk management framework guides its risk-taking activity and ensures that it is in conformity with
regulatory requirements, applicable laws, the Group's risk appetite, shareholder expectations and standards of
best practice. The framework incorporates a comprehensive risk governance structure and appropriate policies
and procedures.
Risk Governance Structure

The Group's risk governance structure seeks to manage risk/reward by ensuring that revenue-generation
activities are compliant with the Group's standards and risk tolerance, while maximising long term shareholder
value. The Group's comprehensive risk governance structure incorporates: (a) oversight effected through the
Board, Board committees and relevant management committees, (b) administrative controls effected through the
establishment of policies, and (c) organisational controls effected through segregation of duties. These controls
are reviewed on an ongoing basis to ensure that they provide effective governance of the Group's risk-taking
activities.
AC C EL ER ATE 282
282
Notes to the
September 30, 2020
September 30, 2020
50. Financial Risk Management (Continued)
Risk limits and benchmarks are integral to the risk management process, as they characterise the Group's risk
tolerance and conform to regulatory requirements. Limits are established for:
(i) Credit and Counterparty risk - exposures to individuals, groups, counterparty, country;
(ii) Market risk - rate gap exposure, currency exposure, market value exposure; and
(iii) Liquidity risk - liquidity gaps, funding exposures/liability diversification and liquid assets levels.
Limits and benchmarks are monitored on an ongoing basis and reported to the relevant governance committees.
Policies & Procedures

Rigorous policies and operational procedures are established throughout the organisation and are approved by
the relevant management personnel and/or governance committees.
These policies and procedures incorporate requirements for compliance monitoring, maintenance of contingency
STATEMENTS
plans and the provision of reports to management and the relevant governance committees and/ or the Board of
STATEMENTS
Directors.
FINANCIAL
Covid-19
FINANCIAL
The onslaught of the coronavirus pandemic (COVID 19) caused a contraction in all the economies in which the
Group operates. The spread of the virus and stringent exit and entry protocols weighed on global travel and limited
THETHE
tourism demand. In addition, the downturn in global demand has also resulted in depressed oil and gas prices.
TOTO
The confluence of factors would have impacted to varying degrees, government revenue for the major territories.
- NOTES
- NOTES
Our monitoring mechanisms were ramped up maintaining close surveillance of the health crisis, the economic
impact on our major trading partners and the contagion effects.
STATEMENTS
STATEMENTS
Our investment portfolios were impacted by the widening of credit spreads and foreign exchange changes which
resulted in significant fall-off in asset prices.
Our Income would have been negatively impacted by waiver or reduction of fees associated with certain loan
FINANCIAL
FINANCIAL
facilities and reduction in loan volumes due to contraction in economic activity.
(a) Credit risk

This is defined as potential for loss to the organisation arising from failure of a borrower, guarantor or
counterparty to honour their contractual obligations to the Group.
The Group incurs credit and counterparty risk primarily in its loan business, reverse repurchase
arrangements, and certain investment activities. There is also credit risk in off-statement of financial position
financial instruments, such as loan commitments. Credit risk management is facilitated by a cadre of loans
officers and credit risk personnel, who together operate within a control framework which employs a
hierarchical level of authorisations for transactions that expose the organisation to credit risk. Operating
practices include the establishment of limits, ongoing monitoring of credit risk exposures, a disciplined
approach to provisioning and loan loss evaluation in addition to ongoing reporting of portfolio exposures to
the relevant governance committees and the regulators.
Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values,
as recorded in the statement of financial position.
283
Notes to the
September 30, 2020
September 30, 2020
(a) Credit risk (continued)
Credit-related commitment risks arise from guarantees which may require payment on behalf of customers.
Such payments are collected from customers based on the terms of the letters of credit. They expose the Group
to risks similar to loans and these are mitigated by the same control policies and processes.
Covid-19
Arising from our surveillance, we recognised that our borrowing customers would have experienced
significant fallout which could result in increased credit losses for the Group. To assist our customers, there
were extensions of moratoriums, payment deferrals and other accommodative activities which impacted
approximately twenty-five percent of the Group’s loan portfolio and this had a positive impact on the
delinquency levels of our credit portfolios. Despite the positive trends observed, we did make significant
adjustments to our ECLs to recognise the increased credit risk associated with the environments. Increased
STATEMENTS
ECLS were also effected for our investment portfolios, which are heavily comprised of sovereign debt.
STATEMENTS
Credit review process
FINANCIAL
The Group has established a credit quality review process involving regular analysis of the ability of borrowers
FINANCIAL
and other counterparties to meet interest and capital repayment obligations.
THE
The Group employs the following classifications in assessing its exposures to its borrowing customers. The
THE
TOTO
classifications are in line with the Jamaican Central Bank regulations.
- NOTES
- NOTES
Standard
STATEMENTS
Special Mention
STATEMENTS
Sub-Standard
Doubtful
FINANCIAL
Loss
FINANCIAL
Exposure to credit risk is mitigated by the taking of financial or physical assets.
Collateral and other credit enhancements

The amount and type of collateral required depend on an assessment of the credit risk of the counterparty.
Guidelines are implemented regarding the acceptability of different types of collateral.
The main types of collateral obtained are as follows:
(i) Loans - mortgages over residential properties, charges over business assets such as premises,
inventory and accounts receivable and charges over financial instruments such as debt securities.
(ii) Securities lending and reverse repurchase transactions – cash or securities.
The Group may also obtain guarantees from parent companies for loans to their subsidiaries.
Collateral values are monitored with a view to requesting additional collateral where market values are
compromised or the terms in the loan agreements dictate.
The Group closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes
more likely that the Group will take possession of collateral to mitigate potential credit losses. Financial assets
that are credit-impaired and related collateral held in order to mitigate potential losses are shown below.
AC C EL ER ATE 284
284
Notes to the
September 30, 2020
September 30, 2020
The Group
2020
Fair value of
Gross Impairment Carrying collateral
exposure allowance amount held
Credit-impaired assets $000 $000 $000 $000
Loans and advances 25,612,125 (11,696,183) 13,915,942 32,421,744
Debt securities 4,254,058 (123,597) 4,130,461 40,822
Total credit-impaired assets 29,866,183 (11,819,780) 18,046,403 32,462,566
STATEMENTS
STATEMENTS
The Group
2019
FINANCIAL
Fair value of
FINANCIAL
Gross Impairment Carrying collateral

exposure allowance amount held
THETHE
Credit-impaired assets $000 $000 $000 $000

TOTO
- NOTES
Loans and advances 22,393,907 (9,526,730) 12,867,177 30,661,904

- NOTES
Debt securities 4,685,760 (363,215) 4,322,545 -

STATEMENTS
Total credit-impaired assets 27,079,667 (9,889,945) 17,189,722 30,661,904

STATEMENTS
FINANCIAL
FINANCIAL
285
Notes to the
September 30, 2020
September 30, 2020
Impairment loss provision methodology

Provisions for impairment losses are assessed under three categories as described below:
Sub-standard, Doubtful or Loss rated loans

The Group identifies substandard, doubtful or loss rated loans as determined by Bank of Jamaica
Regulations. The calculated provision is adjusted by the future cash flow from the realisation of the related
collateral.
Individually Significant, Standard and Special Mention loans

Individually significant loans are reviewed to determine whether the loans show objective evidence of
impairment and to determine the extent of provision required. Impairment may be determined through
assessment of a number of factors, which include:
STATEMENTS
STATEMENTS
(i) Any significant financial difficulty being experienced by the borrower.
(ii) Breach of contract, such as default term, delinquency in principal and interest.
FINANCIAL
(iii) High probability of bankruptcy or other financial reorganisation by the borrower.
FINANCIAL
Collectively assessed provisions
THE
THE
All loans, excluding those that are impaired, are assessed on a portfolio basis where possible, in order to
TOTO
reflect the homogenous nature of the loans. The provision is determined by a quantitative review of the
- NOTES
- NOTES
respective portfolios.
STATEMENTS
STATEMENTS
The tables below show the loans and the associated impairment provision for each internal rating class:
FINANCIAL
FINANCIAL
The Group
2020 2019
Impairment Impairment
Loans provision Loans provision
$’000 $’000 $’000 $’000
Standard 430,460,508 6,957,494 387,577,599 474,879
Special Mention 13,137,707 325,344 14,688,170 98,652
Sub-Standard 5,564,899 1,118,571 9,385,854 2,143,658
Doubtful 10,869,493 4,633,356 15,185,815 5,188,666
Loss 7,351,249 5,553,129 5,784,061 5,251,765
467,383,856 18,587,894 432,621,499 13,157,620
AC C EL ER ATE 286
286
Notes to the
September 30, 2020
September 30, 2020
The credit quality of loans is summarised as follows:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Unimpaired 442,670,598 410,227,592 - -
Impaired 24,713,258 22,393,907 - -
Gross 467,383,856 432,621,499 - -
Less: provision for credit losses (18,587,894) (13,157,620) - -
Net 448,795,962 419,463,879 - -
The ageing analysis of past due but not impaired loans is as follows:
STATEMENTS
STATEMENTS

2020 2019 2020 2019
FINANCIAL
$’000 $’000 $’000 $’000

FINANCIAL
Less than 30 days 76,348,094 85,101,945 - -

THETHE
31 to 60 days 14,280,307 8,977,458 - -

TOTO
61 to 90 days 8,798,714 4,834,422 - -

- NOTES
Greater than 90 days 1,414,630 2,166,657 - -

- NOTES
100,841,745 101,080,482 - -
STATEMENTS
STATEMENTS
Of the aggregate amount of gross past due but not impaired loans, $19,756,243,000 was secured as at
September 30, 2020 (2019 – $83,060,512,000).
FINANCIAL
FINANCIAL
Restructured loans
Restructuring activities include extended payment arrangements, approved external management plans, and
modification and deferral of payments. Following restructuring, a previously overdue customer account is reset
to a normal status and managed together with other similar accounts. Restructuring policies and practices are
based on indicators or criteria which, in the judgment of management, indicate that payment will most likely
continue. These policies are kept under continuous review. Restructuring is most commonly applied to term
loans.
287
Notes to the
September 30, 2020
September 30, 2020

Restructured loans (continued)
The determination of whether a loan would qualify for renegotiation is made only if all factors indicate that the
borrower is able to repay in full (including interest). In making this assessment, the Group takes its historic
experience with the borrowers, their expected future cash flows, collateral valuations and any guarantees into
consideration. Therefore, at the time of modification, all renegotiated loans are interest bearing with interest
being calculated using the terms of the modified loan.
All renegotiated loans are individually assessed for impairment as the active renegotiation of a loan as a result
of borrower difficulty, is considered a trigger for determining whether the loan should be tested for impairment.
In carrying out its assessment, the Group uses the same methodology as with any other loan in the portfolio
that exhibits other objective evidence of impairment. These loans are, however, actively monitored for at least
12 months from the time of renegotiation to determine whether circumstances have changed that would result
STATEMENTS
in the loan being impaired or whether there should be an increase in the current level of impairment.
STATEMENTS
Credit risk exposure
The table below represents a worst case scenario of credit risk exposure of the Group and the Company at
FINANCIAL
FINANCIAL
the date of the statement of financial position, without taking account of any collateral held or other credit
enhancements. For on-statement of financial position assets, the exposures set out below are based on net
THE
carrying amounts as reported in the statement of financial position.
THE
TOTO
- NOTES
- NOTES
2020 2019 2020 2019
STATEMENTS
$’000 $’000 $’000 $’000
STATEMENTS
Credit risk exposures relating to on-
statement of financial position
assets:
FINANCIAL
Balances with Central Banks 74,039,589 62,535,389 - -
FINANCIAL
Due from banks 169,992,284 147,035,076 2,760,873 3,844,168
Derivative financial instruments 653,735 239,279 - -
Reverse repurchase agreements 9,518,854 7,837,898 251,893 251,852
Loans and advances, net of credit
impairment losses 452,954,936 423,102,600 - -
Investment securities 780,623,376 697,102,360 7,114,685 7,115,932
Customers’ liability – letters of credit and
undertaking 3,618,540 2,051,519 - -
Reinsurance assets 26,532,008 33,779,448 - -
Other assets 32,271,051 40,732,005 13,707,012 14,841,143
1,550,204,373 1,414,415,574 23,834,463 26,053,095
Credit risk exposures relating to off-
statement of financial position
items:
Credit commitments 65,777,352 61,386,535 - -
Acceptances, guarantees and
indemnities 13,152,553 8,869,830 - -
78,929,925 70,256,365 - -
AC C EL ER ATE 288
288
Notes to the
September 30, 2020
September 30, 2020
Credit exposures
(i) Loans
The majority of loans are made to customers in Jamaica and Bermuda. The following table summarises
the credit exposure for loans at their carrying amounts, as categorised by the industry sectors:

2020 2019 2020 2019
$’000 $’000 $’000 $’000
Agriculture 9,205,419 8,761,071 - -
Public Sector 9,021,595 6,697,400 - -
Construction and land development 19,621,656 23,753,824 - -
STATEMENTS
Other financial institutions 8,079,934 4,773,893 250,000 250,000

STATEMENTS
Distribution 44,839,821 45,316,532 - -

Electricity, water & gas 12,057,964 13,061,527 - -
Entertainment 1,117,331 1,342,061 - -
FINANCIAL
FINANCIAL
Manufacturing 8,105,729 7,036,936 - -

Mining and processing 173,704 4,585,903 - -
Personal 250,692,640 250,585,021 - -
THETHE
Professional and other services 27,235,685 19,303,058 - -

TOTO
Tourism 42,825,463 37,066,090 - -

- NOTES
Transportation storage and communication 2,490,606 7,797,313 - -

- NOTES
Overseas residents 31,916,309 2,540,870 - -

STATEMENTS
Total 467,383,856 432,621,499 250,000 250,000

STATEMENTS
Expected credit losses (18,587,894) (13,157,620) (37) -

448,795,962 419,463,879 249,963 250,000
FINANCIAL
FINANCIAL
Net 452,954,936 423,102,600 251,893 251,852
(ii) Debt securities

The following table summarises the credit exposure for debt securities at their carrying amounts, as
categorised by issuer:
The Group
2020 2019
$’000 $’000
Government of Jamaica and Bank of Jamaica 323,373,333 286,293,065
Other corporate bonds 164,566,839 158,494,216
Foreign governments 284,062,982 244,580,079
772,003,154 689,367,360
Expected credit losses (1,008,762) (1,393,658)
Interest receivable 9,628,984 9,128,658
780,623,376 697,102,360
289
Notes to the
September 30, 2020
September 30, 2020
Maximum exposure to credit risk
The following tables contain an analysis of the credit risk exposure of financial instruments for which an ECL
allowance is recognised at September 30, 2020.
The Group
ECL staging
2020
Stage 1 Stage 2 Stage 3 Purchased

12-month credit-
STATEMENTS
ECL Lifetime ECL Lifetime ECL impaired Total
STATEMENTS
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
FINANCIAL
Low 268,016,627 - - - 268,016,627
FINANCIAL
Medium 377,243,878 3,788,577 - 1,388,405 382,420,860
THE
High 4,456,284 637,937 - - 5,094,221
THE
TOTO
Default - - 73,271 3,534,874 3,608,145
- NOTES
- NOTES
Gross carrying amount 649,716,789 4,426,514 73,271 4,923,279 659,139,853
Loss allowance on amortised cost (710,722) (265,701) (32,339) - (1,008,762)
STATEMENTS
STATEMENTS
Carrying amount 649,006,067 4,160,813 40,932 4,923,279 658,131,092
The Group
FINANCIAL
FINANCIAL
ECL staging
2019

12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
Low 247,531,073 1,470,018 - - 249,001,091
Medium 328,637,712 3,094,611 - 4,168,039 335,900,362
High 3,985,850 922,133 - - 4,907,983
Default - 123,089 517,721 - 640,810
Gross carrying amount 580,154,635 5,609,851 517,721 4,168,039 590,450,246
Loss allowance on amortised cost (1,393,658) - - - (1,393,658)
Carrying amount 578,760,977 5,609,851 517,721 4,168,039 589,056,588
AC C EL ER ATE 290
290
Notes to the
September 30, 2020
September 30, 2020
Maximum exposure to credit risk(continued)
The Group
ECL staging
2020

12-month credit-
LOANS AND ADVANCES $000 $000 $000 $000 $000
Risk rating
STATEMENTS
STATEMENTS
Low 211,348,611 91,352,844 212,294 - 302,913,749

Medium 84,844,710 46,354,111 454,014 - 131,652,835
High 1,472,219 4,951,385 14,993,312 - 21,416,916
FINANCIAL
FINANCIAL
Default - 157,009 11,243,347 - 11,400,356

Gross carrying amount 297,665,540 142,815,348 26,902,967 - 467,383,856
THETHE
Loss allowance (1,888,748) (4,968,915) (11,730,230) - (18,587,894)

TOTO
- NOTES
Carrying amount 295,776,792 137,846,433 15,172,737 - 448,795,962

- NOTES
STATEMENTS
STATEMENTS
The Group
ECL staging
FINANCIAL
2019
FINANCIAL

12-month credit-
Risk rating
Low 278,058,237 8,422,494 24,606 - 286,505,337
Medium 110,651,378 6,835,092 - - 117,486,470
High 3,348,586 4,244,019 12,453,968 - 20,046,573
Default - 149,429 8,433,690 - 8,583,119
Gross carrying amount 392,058,201 19,651,034 20,912,264 - 432,621,499
Loss allowance (1,594,326) (2,036,563) (9,526,731) - (13,157,620)
Carrying amount 390,463,875 17,614,471 11,385,533 - 419,463,879
291
Notes to the
September 30, 2020
September 30, 2020
The Group
ECL staging
2020

12-month credit-
DUE FROM BANKS, REINSURANCE and
OTHER ASSETS $000 $000 $000 $000 $000
Risk rating
STATEMENTS
STATEMENTS
Low 228,795,343 - - - 228,795,343
Gross carrying amount 228,795,343 - - - 228,795,343
FINANCIAL
Loss allowance (705,116) - - - (705,116)
FINANCIAL
Carrying amount 228,090,227 - - - 228,090,227
THE
THE
TOTO
The Group
- NOTES
- NOTES
ECL staging
STATEMENTS
2019
STATEMENTS
12-month credit-
FINANCIAL
FINANCIAL
OTHER ASSETS $000 $000 $000 $000 $000
Risk rating
Low 221,546,529 - - - 221,546,529
Loss allowance (398,585) - - - (398,585)
Carrying amount 221,147,944 - - - 221,147,944
AC C EL ER ATE 292
292
Notes to the
September 30, 2020
September 30, 2020
The Company
ECL staging
2020

12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
STATEMENTS
STATEMENTS
Low 7,114,685 - - - 7,114,685

FINANCIAL
FINANCIAL
The Company
THETHE
ECL staging
TOTO
2019
- NOTES
- NOTES

12-month credit-
STATEMENTS

STATEMENTS
DEBT SECURITIES $000 $000 $000 $000 $000

Risk rating
FINANCIAL
FINANCIAL
Low 7,115,932 - - - 7,115,932

293
Notes to the
September 30, 2020
September 30, 2020
The Company
ECL staging
2020

12-month credit-
LOANS AND ADVANCES
STATEMENTS
$000 $000 $000 $000 $000
STATEMENTS
Risk rating
Low 251,930 - - - 251,930
FINANCIAL
Gross carrying amount 251,930 - - - 251,930
FINANCIAL
Loss allowance (37) - - - (37)
THE
Carrying amount 251,893 - - - 251,893
- NOTES
- NOTES
STATEMENTS THE
TOTO
The Company
STATEMENTS
ECL staging
2019
FINANCIAL
FINANCIAL
12-month credit-
LOANS AND ADVANCES
$000 $000 $000 $000 $000
Risk rating
Low 251,899 - - - 251,899
Gross carrying amount 251,899 - - - 251,899
Carrying amount 251,852 - - - 251,852
AC C EL ER ATE 294
294
Notes to the
September 30, 2020
September 30, 2020
The Company
ECL staging
2020

12-month credit-
OTHER ASSETS $000 $000 $000 $000 $000
Risk rating
STATEMENTS
STATEMENTS
Low 16,467,884 - - - 16,467,884

FINANCIAL
Loss allowance - - - - -
FINANCIAL
Carrying amount 16,467,884 - - - 16,467,884

THETHE
TOTO
The Company
- NOTES
- NOTES
ECL staging
STATEMENTS
2019
STATEMENTS

12-month credit-
FINANCIAL

FINANCIAL

OTHER ASSETS $000 $000 $000 $000 $000
Risk rating
Low 18,685,340 - - - 18,685,340
Carrying amount 18,685,311 - - - 18,685,311
295
Notes to the
September 30, 2020
September 30, 2020
The following tables contain an analysis of the expected credit losses. For debt securities, the amounts
disclosed include instruments at amortised cost (ECL disclosed in maximum exposure to credit risk) and
FVOCI:
The Group
ECL staging
2020

12-month credit-
STATEMENTS
DEBT SECURITIES
STATEMENTS
$000 $000 $000 $000 $000
Risk rating
Low 211,057 - - - 211,057
FINANCIAL
FINANCIAL
Medium 1,815,582 245,295 - - 2,060,877
High 656,758 82,482 - - 739,240
THE
Default - - 32,448 - 32,448
THE
TOTO
Loss allowance 2,683,397 327,777 32,448 - 3,043,622
- NOTES
- NOTES
STATEMENTS
The Group
STATEMENTS
ECL staging
2019
FINANCIAL
FINANCIAL
12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
Low 289,494 21,737 - - 311,231
Medium 1,948,894 212,961 - - 2,161,855
High 628,598 128,927 - - 757,525
Default - - 363,215 - 363,215
Loss allowance 2,866,986 363,625 363,215 - 3,593,826
AC C EL ER ATE 296
296
Notes to the
September 30, 2020
September 30, 2020
The Group
ECL staging
2020

12-month credit-
Risk rating
Low 1,076,042 2,743,968 5,398 - 3,825,408
STATEMENTS
Medium 781,546 1,961,975 17,340 - 2,760,861

STATEMENTS
High 31,137 105,964 3,908,511 - 4,045,612

Default - 157,009 7,799,004 - 7,956,013
FINANCIAL
Loss allowance 1,888,725 4,968,916 11,730,253 - 18,587,894

FINANCIAL
THETHE
The Group
TOTO
ECL staging
- NOTES
- NOTES
2019
STATEMENTS

STATEMENTS
12-month credit-
LOANS AND ADVANCES
FINANCIAL
$000 $000 $000 $000 $000

FINANCIAL
Risk rating
Low 880,421 105,735 558 - 986,714
Medium 651,499 1,762,297 - - 2,413,796
High 62,406 168,531 23,350 - 254,287
Default - - 9,502,823 - 9,502,823
Loss allowance 1,594,326 2,036,563 9,526,731 - 13,157,620
297
Notes to the
September 30, 2020
September 30, 2020

The Group
ECL staging
2020

credit-
12-month ECL Lifetime ECL Lifetime ECL impaired Total
DUE FROM BANKS, REINSURANCE
and OTHER ASSETS $000 $000 $000 $000 $000
Risk rating
Low 705,116 - - - 705,116
Loss allowance 705,116 - - - 705,116
STATEMENTS
STATEMENTS
The Group
ECL staging
FINANCIAL
FINANCIAL
2019
credit-
THE
THE
TOTO
DUE FROM BANKS, REINSURANCE
- NOTES
and OTHER ASSETS $000 $000 $000 $000 $000
- NOTES
Risk rating
Low 398,585 - - - 398,585
STATEMENTS
Loss allowance 398,585 - - - 398,585
STATEMENTS
The Company
FINANCIAL
FINANCIAL
ECL staging
2020

12-month ECL Lifetime ECL Lifetime ECL credit-impaired Total
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
Low 1,634 - - - 1,634
Loss allowance 1,634 - - - 1,634
The Company
ECL staging
2019

12-month ECL Lifetime ECL Lifetime ECL credit-impaired Total
DEBT SECURITIES $000 $000 $000 $000 $000
Risk rating
Low 1,331 - - - 1,331
Loss allowance 1,331 - - - 1,331
AC C EL ER ATE 298
298
Notes to the
September 30, 2020
September 30, 2020

ECL staging
2020

12-month credit-
LOANS AND ADVANCES
$000 $000 $000 $000 $000
Risk rating
Low 25 - - - 25
Loss allowance 25 - - - 25
ECL staging
STATEMENTS
STATEMENTS
2019

12-month credit-
FINANCIAL
FINANCIAL

LOANS AND ADVANCES
$000 $000 $000 $000 $000
THETHE
Risk rating
TOTO
Low 47 - - - 47
- NOTES
- NOTES
Loss allowance 47 - - - 47
FINANCIAL
STATEMENTS
299
Notes to the
September 30, 2020
September 30, 2020
The Company
ECL staging
2020

credit-
DUE FROM BANKS and OTHER
ASSETS $000 $000 $000 $000 $000
Risk rating
Low - - - - -
STATEMENTS
STATEMENTS
Gross carrying amount - - - - -
FINANCIAL
The Company
FINANCIAL
ECL staging
THE
2019
THE
TOTO
- NOTES
- NOTES
credit-
STATEMENTS
DUE FROM BANKS and OTHER
STATEMENTS
ASSETS $000 $000 $000 $000 $000
Risk rating
Low 29 - - - 29
FINANCIAL
FINANCIAL
Gross carrying amount 29 - - - 29
AC C EL ER ATE 300
300
Notes to the
September 30, 2020
September 30, 2020
Loss allowance
The following tables explain the changes in the loss allowance between the beginning and the end of the
annual period due to these factors:
The Group
ECL staging
2020
12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
STATEMENTS
Loss allowance as at October 1, 2019 2,866,986 363,625 363,215 - 3,593,826

STATEMENTS
Transfers:
FINANCIAL
Transfer from Stage 1 to Stage 2 (175,597) 175,597 - - -

FINANCIAL
Transfer from Stage 1 to Stage 3 (32,448) - 32,448 - -

THETHE
Transfer from Stage 2 to Stage 1 102,443 (102,443) - - -

TOTO
New financial assets originated or purchased 1,195,477 58,131 - - 1,253,608

- NOTES
Financial assets derecognised during the period (568,714) (13,401) (362,581) - (944,696)
- NOTES
Changes to principal (5,631) (33,286) - - (38,917)

STATEMENTS
Changes to input to ECL model (581,570) (114,595) - - (696,165)

STATEMENTS
Foreign exchange movement (117,549) (5,851) (634) - (124,034)

Loss allowance as at September 30, 2020 2,683,397 327,777 32,448 - 3,043,622
FINANCIAL
FINANCIAL
The Group
ECL staging
2019
12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
Loss allowance as at October 1, 2018 2,732,330 470 365,068 - 3,097,868
Transfers:
New financial assets originated or purchased 623,962 31,440 - - 655,402
On acquisition of subsidiary 1,133,086 307,484 - - 1,440,570
Disposal of subsidiary (29,725) - - - (29,725)
Financial assets derecognised during the period (1,005,741) (2,849) - - (1,008,590)
Changes to principal (4,841) - - - (4,841)
Changes to input to ECL model (452,152) (18,824) - - (470,976)
Foreign exchange movement (82,056) (1,973) (1,853) - (85,882)
Loss allowance as at September 30, 2019 2,866,986 363,625 363,215 - 3,593,826
301
Notes to the
September 30, 2020
September 30, 2020
Loss allowance (continued)
The Group
ECL staging
2020
12-month credit-
Loss allowance as at October 1, 2019 1,594,326 2,036,564 9,526,730 - 13,157,620
Transfers:
STATEMENTS
STATEMENTS
Transfer from Stage 1 to Stage 3 (23,600) - 23,600 - -
Transfer from Stage 2 to Stage 3 - (174,144) 174,144 - -
Transfer from Stage 3 to Stage 1 16,253 - (16,253) - -
FINANCIAL
Transfer from Stage 3 to Stage 2 - 8,556 (8,556) - -
FINANCIAL
New financial assets originated or purchased 1,138,238 852,942 2,550,094 - 4,541,274
Financial assets derecognised during the
(853,054) (1,394,609) (2,857,579) - (5,105,242)
THE
period
THE
Write offs - - (4,932,507) - (4,932,507)
TOTO
Changes to principal 415,983 (247,394) 5,682,975 - 5,851,564
- NOTES
- NOTES
Changes to input to ECL model (205,414) 3,698,018 1,587,019 - 5,079,623
Foreign exchange movement 2,177 (7,201) 586 (4,438)
STATEMENTS
Loss allowance as at September 30, 2020 1,888,725 4,968,916 11,730,253 - 18,587,894
STATEMENTS
The Group
FINANCIAL
ECL staging
FINANCIAL
2019
12-month credit-
Loss allowance as at October 1, 2018 1,620,577 224,868 6,756,798 - 8,602,243
Transfers:
Transfer from Stage 1 to Stage 3 (1,710,388) - 1,710,388 - -
Transfer from Stage 2 to Stage 3 - (796,326) 796,326 - -
Transfer from Stage 3 to Stage 1 46 - (46) - -
Transfer from Stage 3 to Stage 2 - 12,632 (12,632) - -
New financial assets originated or purchased 1,833,130 1,697,715 - - 3,530,845
On acquisition of subsidiary 103,903 371,678 196,329 - 671,910
(1,610) (482) (402) - (2,494)
period
Write offs - 160 (1,017,777) - (1,017,617)
Changes to principal (4,165) (11,596) - - (15,761)
Changes to input to ECL model (41,602) 334,641 1,097,826 - 1,390,865
Foreign exchange movement 120 (2,411) (80) - (2,371)
Loss allowance as at September 30, 2019 1,594,326 2,036,564 9,526,730 - 13,157,620
AC C EL ER ATE 302
302
Notes to the
September 30, 2020
September 30, 2020
The Group
ECL staging
2020

12-month credit-
DUE FROM BANKS, REINSURANCE ASSET
and OTHER ASSETS $000 $000 $000 $000 $000
Loss allowance as at October 1, 2020 398,585 - - - 398,585
STATEMENTS
STATEMENTS
New financial assets originated or purchased

FINANCIAL

306,531 - - - 306,531
FINANCIAL
period
Loss allowance as at September 30, 2020 705,116 - - - 705,116
- NOTES
- NOTES THETHE
TOTO
The Group
STATEMENTS
STATEMENTS
ECL staging
2019
FINANCIAL

FINANCIAL
12-month credit-
DUE FROM BANKS, REINSURANCE ASSET
and OTHER ASSETS $000 $000 $000 $000 $000
Loss allowance as at October 1, 2018 15,227 - - - 15,227
On acquisition of subsidiary 398,342 - - - 398,342

New financial assets originated or purchased 243 - - - 243
(15,227) - - - (15,227)
period
Loss allowance as at September 30, 2019 398,585 - - - 398,585
303
Notes to the
September 30, 2020
September 30, 2020

The Company
ECL staging
2020
12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
Loss allowance as at October 1,
1,408 - - - 1,408
2019
Transfers:
New financial assets originated or
226 - - - 226
purchased
Loss allowance as at September
1,634 - - - 1,634
30, 2020
STATEMENTS
STATEMENTS
The Company
ECL staging
2019
FINANCIAL
FINANCIAL
12-month credit-
DEBT SECURITIES $000 $000 $000 $000 $000
THE
THE
TOTO
1,353 - - - 1,353
2018
- NOTES
- NOTES
Transfers:
STATEMENTS
55 - - - 55
STATEMENTS
purchased
1,408 - - - 1,408
30, 2019
FINANCIAL
FINANCIAL
The Company
ECL staging
2020
12-month credit-
47 - - - 47
2019
Transfers:
Financial assets derecognised (10) - - - (10)
37 - - - 37
30, 2020
The Company
ECL staging
2019
12-month credit-
Loss allowance as at
- - - - -
October 1, 2018
Transfers:
47 - - - 47
purchased
47 - - - 47
30, 2019
AC C EL ER ATE 304
304
Notes to the
September 30, 2020
September 30, 2020
The Company
ECL staging
2020

12-month Lifetime credit-
ECL Lifetime ECL ECL impaired Total
DUE FROM BANKS, REINSURANCE ASSET and
OTHER ASSETS $000 $000 $000 $000 $000
Loss allowance as at October 1, 2019 29 - - - 29
STATEMENTS
STATEMENTS
Transfers:
FINANCIAL
Financial assets derecognised during the period (29) - - - (29)

FINANCIAL
Loss allowance as at September 30, 2020 - - - - -

THETHE
TOTO
- NOTES
The Company
- NOTES
ECL staging
STATEMENTS
STATEMENTS
2019

12-month Lifetime credit-
FINANCIAL
ECL Lifetime ECL ECL impaired Total

FINANCIAL
DUE FROM BANKS, REINSURANCE ASSET and

OTHER ASSETS $000 $000 $000 $000 $000
Loss allowance as at October 1, 2018 226 - - - 226
Transfers:
New financial assets originated or purchased 29 - - - 29

Financial assets derecognised during the period (226) - - - (226)
Loss allowance as at September 30, 2019 29 - - - 29
305
Notes to the
September 30, 2020
September 30, 2020
The most significant period-end assumptions used for the ECL estimate are set out in the tables below
At October 1, 2019 and September 30, 2020
Economic variable assumptions for exposure – securities
Macroeconomic variables used in the Group’s ECL models for securities include, but are not limited to, Global
Gross Domestic Product growth, Global Consumer Price Index and interest rates. The impact of these
economic variables has been determined by performing statistical analysis to understand that a correlation
exists between certain variables. The PDs and LGDs are impacted by long-term changes in the various data
sets gathered from external rating agencies (Standard & Poor, Moody’s) and the International Monetary Fund.
Macroeconomic variable assumptions in the expected credit loss models include Global Gross Domestic
STATEMENTS
STATEMENTS
Product growth of -3.70 (2019: 3.71) and Global Consumer Price Index 4.40 (2019: 3.29).
Economic variable assumptions for exposure – loans and advances
FINANCIAL
FINANCIAL
For lending operations in Jamaica and Trinidad and Tobago, management has examined the information
within the market and selected economic metrics that have a significant correlation to credit losses.
THE
THE
TOTO
Expected state for the next 12
- NOTES
Jamaica Trinidad
- NOTES
months
GDP growth Base Negative Negative
STATEMENTS
STATEMENTS
Upside Positive Positive
Downside Negative Negative
FINANCIAL
FINANCIAL
Inflation Base Stable Stable
Upside Stable Stable
Downside Negative Negative
In the Bermuda subsidiaries macroeconomic variables include, but are not limited to, unemployment rates,
collateral normalization rates and interest rates. The impact of these economic variables has been determined
by performing statistical analyses to confirm that a correlation exists between certain variables, mainly default
rates. The PD is impacted by changes in unemployment rate data gathered from an external rating agency.
Collateral normalisation rate changes impact the LGD and interest rates estimations will impact future year
balances in the calculation of ECL. The impact of any reasonably possible fluctuations in these variables is
considered by management to be immaterial.
AC C EL ER ATE 306
306
Notes to the
September 30, 2020
September 30, 2020
Set out below are the changes in ECL as at 30 September 2020 that would result from a reasonably possible
change in the PDs used by the Group:
The Group
2020
Impact on ECL
%
Actual PD ranges Change
Financial Assets applied in PD Impact
$’000
Debt securities 0.003% - 40.2% +/- 30% 915,686
STATEMENTS
Loans and advances 0% - 0.074% +/- 30% 2,387,985

STATEMENTS
Repurchase agreements 0.0313% - 0.449% +/- 30% 1,686

Cash and cash equivalents 0.002% - 0.007% +/- 30% 103,207
Commitments, guarantees & LCs 0.1512% -0.688% +/- 30% 15,326
FINANCIAL
FINANCIAL
Total 3,423,890
THETHE
The Group
TOTO
2019
- NOTES
Impact on ECL
- NOTES
%
STATEMENTS
Actual PD ranges Change

STATEMENTS

$’000
FINANCIAL
Debt securities 0.0145% - 30.8% +/- 20% 547,444

FINANCIAL
Loans and advances 0% - 0.074% +/- 20% 178,723

Repurchase agreements 0.002% - 0.018% +/- 20% 169
Cash and cash equivalents 0.002% - 0.007% +/- 20% 3,353
Commitments, guarantees & LCs 0.1512% -0.688% +/- 20% -
Total 729,689
307
Notes to the
September 30, 2020
September 30, 2020
The Company
2020
Impact on ECL
Actual PD
ranges % Change
$’000
Debt securities 0.01901% +/- 30% 490
Loans and advances 0.018% +/- 30% -
Cash and cash equivalents 0.0016% +/- 30% -
Total 490
STATEMENTS
STATEMENTS
The Company
2019
FINANCIAL
Impact on ECL
FINANCIAL
Actual PD
ranges % Change
THE
THE
TOTO
$’000
- NOTES
- NOTES
Debt securities 0.01901% +/- 20% 266
Loans and advances 0.018% +/- 20% 9
STATEMENTS
Cash and cash equivalents 0.0016% +/- 20% 6
STATEMENTS
Total 281
FINANCIAL
FINANCIAL
AC C EL ER ATE 308
308
Notes to the
September 30, 2020
September 30, 2020
(b) Liquidity risk

The Group’s liquidity risk policy is designed to ensure that it can meet cash obligations when they fall due
and take advantage of unanticipated earnings enhancement opportunities.
Liquidity management within the Group, which incorporates funding risk management, ensures that there is
a sufficient level of liquid assets available in addition to stable funding lines to meet on-going cash
commitments even during periods of stress. The management of liquidity risk is executed within a framework
which comprises:
(i) Oversight by relevant governance committees;

(ii) Daily management of liquidity by the relevant treasury/investment units within each Group company;
(iii) Use of tools to measure the Group’s exposures;
STATEMENTS
STATEMENTS
(iv) Establishment and monitoring of limits/benchmarks for maturity mismatches and funding concentrations;
(v) Diversification of funding sources;
FINANCIAL
(vi) Maintenance of committed lines of credits; and

FINANCIAL
(vii) Monitoring of adherence to regulatory ratios.

THETHE
TOTO
Monitoring and reporting take the form of cash flow measurement and projections for the next day, week
- NOTES
and month, respectively, as these are key periods for liquidity management. The starting point for those
- NOTES
projections is an analysis of the contractual maturity of the financial liabilities and the expected collection
STATEMENTS
date of the financial assets.

STATEMENTS
The matching of the maturities and interest rates of assets and liabilities is fundamental to the
management of the Group’s liquidity exposure. It is unusual for companies to be completely matched
FINANCIAL
FINANCIAL
since business transacted is often of uncertain term and of different types. An unmatched position
potentially enhances profitability, but can also increase the risk of loss.
The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing
liabilities as they mature, are important factors in assessing the liquidity of the Group and its exposure to
changes in interest rates and exchange rates.
COVID 19 would have resulted in increased liability run-offs, albeit moderate. Our liquidity positioning
was sufficient, thereby enabling the Group meet its contractual and regulatory obligations. It was also
further bolstered by USD fund raising activities in the international markets.
309
Notes to the
September 30, 2020
September 30, 2020

(b) Liquidity risk (continued)
Cash flows of financial liabilities
The tables below present the contractual maturities of undiscounted cash flows (both interest and principal cash flows) of the
financial assets (expected) and liabilities (contractual and expected) based on the remaining period.
The Group
Within 1 2 to 3 4 to 12 1 to 5 Over
Total
Month Months Months Years 5 Years
$’000 $’000 $’000 $’000 $’000 $’000
As at September 30, 2020:
Due to Banks 10,473,893 11,449,827 10,310,123 297,117 - 32,530,960
Customer deposits 447,637,075 29,650,682 57,036,287 15,972,126 - 550,296,170
Repurchase agreements 66,659,756 60,011,798 83,083,591 1,302,685 4,002,052 215,059,882
Obligations under securitisation
515,728 392,272 907,999 30,628,584 66,926,509 99,371,092
arrangements
STATEMENTS
Other borrowed funds 3,687,953 12,910,451 16,090,984 100,158,495 21,791,904 154,639,787
STATEMENTS
Third party interests in mutual
27,948,926 - - - - 27,948,926
funds
FINANCIAL
Lease liabilities 1,983,980 195,585 542,930 1,711,562 163,938 4,597,995
FINANCIAL
Liabilities under annuity ,
insurance and investment 1,534,291 3,767,547 39,080,450 98,960,382 720,183,373 863,526,043
THE
contracts
THE
TOTO
Segregated fund liabilities 12,965 93,135 405,302 1,218,198 13,344,367 15,073,967
- NOTES
Other 65,688,482 - - - - 65,688,482
- NOTES
Total financial liabilities
STATEMENTS
(contractual maturity dates) 626,143,049 118,471,297 207,457,666 250,249,149 826,412,143 2,028,733,304
STATEMENTS
(expected maturity dates) 148,547,731 116,761,338 228,640,710 348,202,749 1,196,266,570 2,038,419,098
Total financial assets
FINANCIAL
FINANCIAL
(expected maturity dates) 243,712,063 61,099,826 170,504,748 556,401,757 1,068,700,997 2,100,419,391
The Group
Total
Month Months Months Years 5 Years
$’000 $’000 $’000 $’000 $’000 $’000
Due to Banks 7,650,272 2,057,785 5,987,784 18,082,435 - 33,778,276
Customer deposits 420,197,834 17,323,412 59,687,139 18,388,394 - 515,596,779
Repurchase agreements 75,136,421 41,242,132 25,566,555 44,217,404 - 186,162,512
2,230,244 1,213,217 10,891,642 33,184,758 8,107,276 55,627,137
arrangements
Other borrowed funds 804,097 12,484,150 14,205,324 107,201,569 7,064,703 141,759,843
Third party interests in mutual
22,138,490 - - - - 22,138,490
funds
Liabilities under annuity ,
insurance and investment 30,149,605 4,047,695 46,807,275 84,927,042 540,725,943 706,657,560
contracts
Segregated fund liabilities 2,032,449 3,415,398 10,812,339 - - 16,260,186
Other 39,830,086 - - - - 39,830,086
(contractual maturity dates) 600,169,498 81,783,789 173,958,058 306,001,602 555,897,922 1,717,810,869
(expected maturity dates) 167,663,781 66,571,720 195,865,748 409,507,719 882,526,066 1,722,135,034
Total financial assets
(expected maturity dates) 284,540,702 41,714,693 134,919,008 517,332,898 894,829,097 1,873,336,398
AC C EL ER ATE 310
310
Notes to the
September 30, 2020
September 30, 2020

Cash flows of financial liabilities (continued)
The Company
Month Months Months Years 5 Years Total
$’000 $’000 $’000 $’000 $’000 $’000
Due to banks - 2,814,244 10,651,090 168,655 - 13,633,989
Other borrowed funds 41,126 3,426,512 31,272,543 50,470,127 - 85,210,308
Other - 1,808,394 - - - 1,808,394
Total financial liabilities (contractual
maturity dates) 41,126 8,049,150 41,923,633 50,638,782 100,652,691
STATEMENTS
Total financial liabilities (expected

STATEMENTS
maturity dates) 41,126 8,049,150 41,923,633 50,638,782 100,652,691

Total financial assets (expected maturity
dates) 17,667,885 229,370 257,247 2,064,329 9,256,301 29,475,132
FINANCIAL
FINANCIAL
The Company
THETHE
TOTO
Month Months Months Years 5 Years Total

- NOTES
$’000 $’000 $’000 $’000 $’000 $’000

- NOTES

STATEMENTS
STATEMENTS
Due to banks - 2,983,285 163,449 18,082,435 - 21,229,169

Other borrowed funds 535,178 853,313 11,147,454 68,055,743 - 80,591,688
FINANCIAL
Other 626,443 - - - - 626,443

FINANCIAL
Total financial liabilities (contractual

maturity dates) 1,161,621 3,836,598 11,310,903 86,138,178 - 102,447,300
Total financial liabilities (expected
maturity dates) 1,161,621 3,836,598 11,310,903 86,138,178 - 102,447,300
Total financial assets (expected maturity
dates) 4,320,340 155,883 708,721 7,041,586 13,615,210 25,841,740
Assets available to meet all of the liabilities and to cover outstanding loan commitments include cash, central
bank balances, items in the course of collection, investment securities and other eligible bills, loans and
advances to banks, and loans and advances to customers. In the normal course of business, a proportion of
customer loans contractually repayable within one year will be extended. In addition, debt securities and
treasury and other bills have been pledged to secure liabilities. The Group is also able to meet unexpected net
cash outflows by selling securities and accessing additional funding sources from other financial institutions.
311
Notes to the
September 30, 2020
September 30, 2020

Cash flows of financial liabilities (continued)
Off-statement of financial position items

The tables below show the contractual expiry by maturity of commitments.
The Group
No later
than 1 to 5 Over 5
1 year years years Total
$’000 $’000 $’000 $’000
At September 30, 2020
Credit commitments 48,901,692 16,230,139 645,541 65,777,372
Guarantees, acceptances and other financial
STATEMENTS
9,190,289 1,610,382 2,351,882 13,152,553
STATEMENTS
facilities
Capital commitments 5,660,761 2,548,357 - 8,209,118
63,752,742 20,388,878 2,997,423 87,139,043
FINANCIAL
FINANCIAL
THE
Credit commitments 53,107,800 6,677,836 1,600,899 61,386,535
THE
TOTO
Guarantees, acceptances and other financial
5,855,716 3,014,114 - 8,869,830
- NOTES
facilities
- NOTES
Operating lease commitments 607,006 1,983,898 701,919 3,292,823
STATEMENTS
Capital commitments 4,656,873 449,912 - 5,106,785
STATEMENTS
64,227,395 12,125,760 2,302,818 78,655,973
FINANCIAL
FINANCIAL
Capital commitments are in relation to approved expenditures for property, plant, equipment and computer
software that were unused as at the end of the respective financial years either because they relate to work in
progress or are awaiting the start of the project. Of the total capital commitments, planned expenditure valuing
$2,477,104,000 (2019 – $51,464,000) for the Group has already been contracted.
AC C EL ER ATE 312
312
Notes to the
Financial
NCB Statements
NCBFinancial
Financial
NCB Financial
Group
GroupLimited
Limited
Group Limited
September 30, 2020
Notes
Notes
(expressed intotothe
theFinancial
JamaicanNotes
Financial
dollars to the
Statements
unless Statements
Financial
otherwise Statements
indicated)
September
September30, September
30,2020
2020 30, 2020
(expressed
(expressedinin
(expressed
Jamaican
Jamaicandollars
in
dollars
Jamaican
unless
unless
dollars
otherwise
otherwise
unless
indicated)
indicated)
otherwise indicated)
50.50.Financial
Financial
Risk
Risk
50.Management
Management
Financial Risk
(Continued)
(Continued)
Management (Continued)
(c)(c) Market
Marketrisk (c)(continued)
risk
(continued)
Market risk (continued)
(i) (i) Currency

Currencyrisk
risk
(i)(continued)
(continued)
Currency risk (continued)
Concentrations
Concentrations of of
Concentrations
currency
currency
risk
risk
– on-
–
ofon-
currency
and
and
off-statement
off-statement
risk – on- and
of of
financial
off-statement
financial
position
position
offinancial
financial
financial
instruments
position
instruments
financial instrum
The
The
tables
tables
below
belowsummarise
The
summarise
tables the
below
the
Group’s
Group’s
summarise
andandthe
the
the
Company’s
Group’s
Company’sand
exposure
exposure
the Company’s
to to
foreign
foreign
exposure
currency
currency
to foreign currency
exchange
exchange rate
rate
risk
risk
exchange
asas
at at
thethe
rate
date
date
risk
of of
the
as
the
statement
atstatement
the dateofofof
financial
the
financial
statement
position
position
of financial position
J$J$ US$US$ J$ BMD

US$
BMD GBP
BMD
GBP
September
September 30,30,
2020
2020
September 30, 2020 $’000
$’000 $’000
$’000
$’000 $’000
$’000 $’000
$’000 $’
Assets
Assets Assets
Cash
Cash in hand
in hand and
and
balances
Cash
balances
in at
hand
at
Central
Central
and balances
Banks
Banks at Central Banks46,160,240
46,160,240 23,384,303
23,384,303
46,160,240 23,384,303
924,465
924,465 1,606,932
1,606,932
924,465 1,606,9
STATEMENTS
STATEMENTS
Due
Duefromfrombanks
banks Due from banks 10,799,022
10,799,022 85,390,411
85,390,411
10,799,022 1,948,451
85,390,411
1,948,451 11,613,931
11,613,931
1,948,451 11,613,9
Reverse
Reverse repurchase
repurchaseReverse
agreements
agreements
repurchase agreements 3,921,613
3,921,613 5,597,241
5,597,241
3,921,613 5,597,241
- - - --
FINANCIAL
Loans
Loans and andadvances
advances
Loans
netnet
ofand
of
provision
provision
advances
forfor
credit
net
credit
oflosses
provision 242,590,013
242,590,013
losses for credit losses 109,025,839
242,590,013
109,025,839 80,113,585
109,025,839
80,113,585 80,113,585
- -
FINANCIAL
Investment
securities
Investment securities 228,091,358
228,091,358 402,034,940
228,091,358
402,034,940 402,034,940
- - 1,009,760
1,009,760 - 1,009,7
THETHE
Derivative
Derivative financial
financial
instruments
Derivative
instruments
financial instruments 287,758
287,758 365,977
365,977
287,758 365,977
- - - --
TOTO
Reinsurance
Reinsurance assets
assets
Reinsurance assets 1,255,170
1,255,170 11,448,283
11,448,283
1,255,170 11,448,283
- - 2,538,036
2,538,036 - 2,538,0
- NOTES
- NOTES
Other
Other Other 18,117,828
18,117,828 10,041,829
10,041,829
18,117,828 2,416,883
10,041,829
2,416,883 2,416,883
6,530
6,530 6,5
Total
Total
financial
financial assets
assets
Total financial assets 551,223,002
551,223,002 647,288,823
551,223,002
647,288,823 85,403,384
647,288,823
85,403,384 16,775,189
16,775,189
85,403,384 16,775,1
STATEMENTS
STATEMENTS
Liabilities
Liabilities Liabilities
FINANCIAL
Due
Dueto tobanks
banks Due to banks 1,217,725
1,217,725 28,702,909
28,702,909
1,217,725 28,702,909
- - 128,171
128,171 - 128,1
FINANCIAL
Customer
Customer deposits
deposits Customer deposits 251,926,192
251,926,192 210,007,491
251,926,192
210,007,491 85,681,883
210,007,491
85,681,883 12,958,209
12,958,209
85,681,883 12,958,2
Repurchase
agreements
Repurchase agreements 68,782,566
68,782,566 140,791,814
140,791,814
68,782,566 140,791,814
- - - --
Obligations
Obligations under
under securitisation
Obligations
securitisation under
arrangements
arrangements
securitisation arrangements - - 71,859,041
71,859,041- 71,859,041
- - - --
Other
Otherborrowed
borrowed funds
funds
Other borrowed funds 27,775,595
27,775,595 57,291,454
57,291,454
27,775,595 57,291,454
- - - --
Liabilities
Liabilitiesunder
under annuity
annuity
Liabilities
, insurance
, insurance
under and
annuity
and
investment
investment
, insurance and investment
contracts
contracts contracts 64,887,925
64,887,925 28,222,239
28,222,239
64,887,925 28,222,239
- - 2,752,447
2,752,447 - 2,752,4
Lease
Lease liabilities
liabilities Lease liabilities 1,788,660
1,788,660 1,788,660
77,306
77,306 577,325
577,325
77,306 577,325
- -
Derivative
financial instruments
Derivative
instruments financial instruments - - - - - -- - --
Segregated
Segregated fundfund liabilities
liabilities
Segregated fund liabilities 14,255,178
14,255,178 14,255,178
- - - -- - --
Third
Third
party
partyinterest
interest in
Third
mutual
in mutual
party funds
interest
funds in mutual funds - - 9,148,146
9,148,146- 9,148,146
- - - --
Other
22,506,698 23,734,011
23,734,011
22,506,698 1,635,295
23,734,011
1,635,295 566,161
1,635,295
566,161 566,1
Total
Total
financial
financial liabilities
liabilities
Total financial liabilities 453,140,539
453,140,539 569,834,411
453,140,539
569,834,411 87,894,503
569,834,411
87,894,503 16,404,988
16,404,988
87,894,503 16,404,9
NetNet
on-statement
on-statement of
Netof
financial
on-statement
financial position
position
of financial position 98,077,463
98,077,463 77,454,412
77,454,412
98,077,463 (2,491,119)
(2,491,119)
77,454,412 370,201
(2,491,119)
370,201 370,2
Guarantees,
Guarantees,acceptances
acceptances
Guarantees,
and
and
other
acceptances
other
financial
financial
facilities
and
facilities
other financial
4,188,220
4,188,220
facilities 6,887,330
4,188,220
6,887,330 6,887,330
24,917
24,917 133,356
133,356
24,917 133,35
Credit
Credit
commitments
commitments
Credit commitments 48,268,149
48,268,149 13,710,855
48,268,149
13,710,855 3,798,369
13,710,855
3,798,369 3,798,369
- -
313
Notes to the
Financial Statements Page 151 Page 151 Page 15
September 30, 2020

sition
ents financial instruments
e to foreign currency
n
The Group The Group The Group
GBPBMD EURO
GBP EURO
TT CAD
TTEURO CAD
NAF TT NAF
OtherCAD Other
Total
NAF Total
Other
000 $’000 $’000
$’000 $’000
$’000 $’000
$’000$’000 $’000
$’000
$’000 $’000
$’000
$’000 $’000
$’000 $’000
$’000
32924,465 1,606,932
16,964 488,047
16,964 488,047
359,167
16,964 359,167
488,047
- 1,099,471
359,167
- 1,099,471
74,039,589- 74,039,589
1,099,471 74
STATEMENTS
STATEMENTS
31
1,948,451 7,905,165
11,613,931 25,081,695
7,905,165 25,081,695
2,868,784
7,905,165 33,543,182
2,868,784
25,081,695 33,543,182
5,221,561
2,868,784 5,221,561
184,372,202
33,543,182 184,372,202
5,221,561 184
- - -- -- - - - -- - -- - 9,518,854
- - 9,518,854 - 9
FINANCIAL
0,113,585
- 1,767,458 - 1,767,458
8,005,844 8,005,844
1,767,458
- 11,452,197
8,005,844
- 11,452,197 - - 452,954,936
11,452,197
- 452,954,936 - 452
FINANCIAL
60 - 1,009,760
379,624 157,546,739
379,624 4,519,713
157,546,739
379,624 44,708,388
4,519,713
157,546,739 44,708,388
14,795,450
4,519,713 14,795,450
44,708,388
853,085,972 14,795,450
853,085,972 853
THE
- - -- -- - - - -- - -- - - -
653,735 653,735 -
THE
TOTO
36 - 3,615,179
2,538,036 3,615,179
2,497,800 2,497,800
3,615,179 2,151,983
2,497,800 2,151,983
3,025,558 3,025,558
2,151,983
26,532,009 3,025,558
26,532,009 26
- NOTES
- NOTES
2,416,883
30 3,183,323
6,530 3,183,323
1,126,781 1,126,781
3,183,323
- 4,565,794
1,126,781
- 4,565,794
3,322,368 - 3,322,368
42,781,336
4,565,794 42,781,336
3,322,368 42
5,403,384
89 16,867,713
16,775,189 194,746,906
16,867,713 7,747,664
194,746,906
16,867,713 96,421,544
7,747,664
194,746,906 96,421,544
27,464,408
7,747,664 27,464,408
96,421,544
1,643,938,633 27,464,408
1,643,938,633 1,643
STATEMENTS
STATEMENTS
FINANCIAL
71 - 13,194
128,171 13,194
2,029 2,029
52,369
13,194 52,369
2,029
- 18,203
-52,369 30,134,600
18,203 - 30,134,600
18,203 30
FINANCIAL
5,681,883
09 2,350,451
12,958,209 2,350,451
5,540,017 5,394,902
5,540,017
2,350,451 5,394,902
-
5,540,017 109,741
5,394,902
- 109,741 -
573,968,886 109,741
573,968,886 573
- - - - -- - - - -- - 1,861,999
- - 1,861,999
211,436,379- 1,861,999
211,436,379 211
- - - - -- - - - -- - -- - - -
71,859,041 71,859,041 - 71
- - 331,896 - 37,574,522
331,896 37,574,522
331,896
- 440,232
37,574,522
- 1,836,503
440,232 - 1,836,503
125,250,202
440,232 125,250,202
1,836,503 125
- 125,370,880 - 125,370,880
15,117,368 - 15,117,368
125,370,880 15,117,368
47 - 7,118,672
2,752,447 203,227,316
7,118,672 203,227,316
7,118,672 203,227,316 446,696,847 446,696,847 446
577,325
- 331,896 - 1,365,683
331,896 1,365,683 -
331,896 434,499 -
1,365,683 434,499
17,625 - 17,625
434,499
4,597,994 17,625
4,597,994 4
- - - - -- - - - -- - -- - - - --
- - - - -- - - - -- - -- - 14,255,178
- - 14,255,178 - 14
- - - - 18,424,768- 18,424,768 - - 18,424,768
-- -- - 27,572,914
- - 27,572,914 - 27
1,635,295
61 4,684,619
566,161 4,684,619
3,645,229 3,645,229
4,684,619
29,692 6,984,880
3,645,229
29,692 6,984,880
1,901,89729,692 1,901,897
65,688,482
6,984,880 65,688,482
1,901,897 65
7,894,503
8 14,830,728
16,404,988 269,779,564
14,830,728 269,779,564
5,476,963
14,830,728 133,230,491
5,476,963
269,779,564 133,230,491
20,863,336
5,476,963 20,863,336
1,571,460,523
133,230,491 1,571,460,523
20,863,336 1,571
01
,491,119) 2,036,985
370,201 (75,032,658)
2,036,985 (75,032,658)
2,270,701
2,036,985 (36,808,947)
2,270,701
(75,032,658) (36,808,947)
6,601,072
2,270,701 6,601,072
(36,808,947)
72,478,110 72,478,110
6,601,072 72
6 24,917 133,356
- -- - - - 1,918,752 - - 1,918,752 - - 13,152,574
1,918,752
- 13,152,574 - 13
3,798,369
- -- -- - - - -- - -- - 65,777,372
- - 65,777,372 - 65
AC C EL ER ATE 314
314
Notes to the
NCB
NCBFinancial
Financial
NCB Financial
September 30, 2020 Group
GroupLimited
Limited
Group Limited
Notes
Notestotothe
the
Notes
Financial
Financial
to the
Statements
Statements
September
SeptemberSeptember
30,
30,2020
2020 30, 2020
(expressed
(expressedin
(expressed
inJamaican
Jamaicanin
dollars
dollars
Jamaican
unless
unless
dollars
otherwise
otherwise
unless
indicated)
indicated)
otherwise indicated)
50.50.Financial
Financial
Risk
50.
Risk
Management
Financial
Management
Risk
(Continued)
Management
(Continued) (Continued)
(c)(c) Market
Market (c)(continued)
risk
risk (continued)
Market risk (continued)
(i)(i)Currency
Currency risk
risk
(i) (continued)
Currency
(continued) risk (continued)
Concentrations
Concentrations of
Concentrations
of
currency
currency risk
risk
–
ofon-
–currency
on-
and
and
off-statement
risk
off-statement
– on- and
of of
off-statement
financial
financial
position
position
of financial position
financial
financial
instruments
instruments
financial
(continued)
(continued)
instruments (continued)
J$J$ US$
US$
J$ BMDBMD
US$ BMD GBP
GBP GB
September
September 30,30,
2019
September
2019 30, 2019 $’000
$’000 $’000
$’000
$’000 $’000
$’000
$’000 $’000
$’000
$’000 $’00
Assets
Assets Assets
Cash
Cash in in
hand
hand andand
Cash
balances
balances
in hand
at at
Central
and
Central
balances
Banks
Banks at Central Banks36,099,458
36,099,458 22,375,790
36,099,458
22,375,790 22,375,790
890,563
890,563 1,685,701
890,563
1,685,701 1,685,70
Due
Duefrom
from banks
banksDue from banks 7,386,296 61,924,009 1,372,533
7,386,296 61,924,009
7,386,296 1,372,533
61,924,009 1,372,533
9,326,850
9,326,850 9,326,85
STATEMENTS
STATEMENTS
Reverse
Reverse repurchase
repurchase
Reverse
agreements
agreements
repurchase agreements 5,721,494
5,721,494 2,116,404
5,721,494
2,116,404 2,116,404
- - -- -
Loans
Loans andand advances
advances
Loans
netnet
and
of of
provision
advances
provision
fornet
for
credit
of
credit
provision
losses 217,359,977
217,359,977
lossesfor credit losses 106,758,671
217,359,977
106,758,671 82,397,439
106,758,671
82,397,439 82,397,439
1,933
1,933 1,93
Investment
securities
Investment securities 231,060,253
231,060,253 332,411,712
231,060,253
332,411,712 332,411,712- - 4,461,779
4,461,779
- 4,461,77
FINANCIAL
FINANCIAL
Derivative
financial
Derivative
instruments
instruments
financial instruments - - 239,279
239,279
- 239,279
- - -- -
Reinsurance
Reinsurance assets
assets
Reinsurance assets 1,098,558
1,098,558 10,346,111
1,098,558
10,346,111 10,346,111
- - 2,080,304
2,080,304
- 2,080,30
THETHE
Other
11,275,364 12,365,377
11,275,364
12,365,377 1,411,434
12,365,377
1,411,434 1,411,434
44,999
44,999 44,99
TOTO
- NOTES
Total
Total
financial
financial assets
assets
Total financial assets 510,001,400
510,001,400 548,537,353
510,001,400
548,537,353 86,071,969
548,537,353
86,071,969 86,071,969
17,601,566
17,601,566 17,601,56
- NOTES
STATEMENTS
STATEMENTS
Liabilities
Liabilities Liabilities
Due
Dueto to
banks
banks Due to banks 3,792,672
3,792,672 18,802,627
3,792,672
18,802,627 18,802,627
- - 94,930
94,930
- 94,93
Customer
Customer deposits
deposits
Customer deposits 212,911,020
212,911,020 185,593,848
212,911,020
185,593,848 79,459,345
185,593,848
79,459,345 79,459,345
14,438,893
14,438,893 14,438,89
FINANCIAL
FINANCIAL
Repurchase
agreements
Repurchase agreements 59,353,455
59,353,455 114,045,903
59,353,455
114,045,903 114,045,903
- - -- -
Obligations
Obligationsunder
under
Obligations
securitisation
securitisation
under
arrangements
arrangements
securitisation arrangements - - 48,675,580
48,675,580
- 48,675,580
- - -- -
Other
Otherborrowed
borrowed
funds
Other
fundsborrowed funds 24,009,455
24,009,455 54,626,881
24,009,455
54,626,881 54,626,881
- - -- -
Liabilities
Liabilitiesunder
under annuity
Liabilities
annuity , insurance
, under
insurance
annuity
andandinvestment
, investment
insurance and investment
contracts
contracts contracts 77,818,389
77,818,389 28,390,141
77,818,389
28,390,141 28,390,141
- - 2,324,589
2,324,589
- 2,324,58
Derivative
financial
Derivative
instruments
instruments
financial instruments - - 239,279
239,279
- 239,279
- - -- -
Segregated
Segregated fund
fundliabilities
Segregated
liabilities fund liabilities 16,549,531
16,549,531 16,549,531
- - - - -- -
Third
Thirdparty
partyinterest
interest
Third
in in
mutual
party
mutual interest
funds
fundsin mutual funds - - 7,846,610
7,846,610
- 7,846,610
- - -- -
Other
16,796,398 16,796,398
9,710,883
9,710,883 679,962
9,710,883
679,962 679,962
683,013
683,013 683,01
Total
Totalfinancial
financialliabilities
liabilities
Total financial liabilities 411,230,920
411,230,920 467,931,753
411,230,920
467,931,753 80,139,307
467,931,753
80,139,307 80,139,307
17,541,425
17,541,425 17,541,42
Net
Net
on-statement
on-statement Netofof
on-statement
financial
financial position
position
of financial position 98,770,480
98,770,480 80,605,600
98,770,480
80,605,600 5,932,662
80,605,600
5,932,662 5,932,662
60,141
60,141 60,14
Guarantees,
Guarantees,acceptances
acceptances
Guarantees,
and
and
acceptances
other
other
financial
financial
and
facilities
facilities 3,452,361
3,452,361
other financial facilities 5,100,536
3,452,361
5,100,536 198,482
5,100,536
198,482 198,482
989989 98
Credit
Credit
commitments
commitments
Credit commitments 43,547,343
43,547,343 15,221,763
43,547,343
15,221,763 2,617,429
15,221,763
2,617,429 2,617,429 - -
315
Notes to the
Financial Statements Page
Page152
152 Page 152 Pag
September 30, 2020
al position
The
The
Group
Group The Group The Group
GBPBMD EURO
GBP
EURO EUROTTTT CAD
TT
CADEURO CAD
NAF
NAF TT Other
NAF
OtherCAD Other
Total
TotalNAF Total Other
000$’000 $’000
$’000
$’000 $’000
$’000 $’000
$’000$’000 $’000
$’000$’000 $’000
$’000
$’000
$’000 $’000
$’000
$’000
$’000 $’000 $’000
701
890,563 1,685,701
13,194
13,194 13,194
691,522
691,522 401,063
401,063
691,522
13,194 401,063
- -
691,522 378,098
378,098
-401,06362,535,389
378,098
62,535,389 - 62,535,389378,098
1,372,533
850 5,098,405
9,326,850
5,098,405 5,098,405
19,948,698
19,948,698 2,440,397
2,440,397
5,098,405 29,799,350
19,948,698 29,799,350
2,440,397
19,948,69829,799,350
9,738,538
9,738,538
2,440,397 9,738,538
29,799,350147,035,076
147,035,076
147,035,076 9,738,538 1
STATEMENTS
STATEMENTS
- - -- - - - - -- - - -- - - -- - - 7,837,898 -
7,837,898 - 7,837,898 -
2,397,439
933 1,603,288
1,603,288
1,933 1,603,288
6,446,932
6,446,932 6,446,932
1,603,288
- - 8,533,682
8,533,682
6,446,932
- 8,533,682
678678 423,102,600
- 423,102,600
8,533,682
678 423,102,600 678 4
779 - 4,461,779
363,450
363,450 134,663,921
134,663,921
363,450 134,663,921
2,838,484
2,838,484
363,450 42,408,107
42,408,107
2,838,484
134,663,921 42,408,107
11,288,300
11,288,300
2,838,484
759,496,006
11,288,300
759,496,006
42,408,107759,496,006
11,288,300 7
FINANCIAL
FINANCIAL
- - -- - - - - -- - - -- - - -- - - 239,279
239,279
- - 239,279 -
304 - 2,808,678
2,080,304
2,808,678 2,808,678
1,177,975
1,177,975 1,177,975
2,808,678
- - 2,210,924
2,210,924
1,177,975
- 2,210,924
14,056,898
14,056,898 -33,779,448
14,056,898
33,779,448
2,210,924 33,779,448
14,056,898
THE
THE
1,411,434
999 3,701,145
3,701,145
44,999 3,701,145
1,240,171
1,240,171 1,240,171
3,701,145
7,496
7,496 5,885,510
5,885,510
7,496
1,240,171 5,885,510
4,800,509
4,800,5097,49640,732,005
4,800,509
40,732,005
5,885,510 40,732,005
4,800,509
TOTO
- NOTES
6,071,969
566 13,588,160
17,601,566
13,588,160 13,588,160
164,169,219
164,169,219 164,169,219
5,687,440
5,687,440
13,588,160 88,837,573
88,837,573
5,687,440
164,169,21988,837,573
40,263,021
40,263,021
5,687,440
1,474,757,701
1,474,757,701
40,263,021
88,837,573
1,474,757,701
40,263,021 1,4
- NOTES
STATEMENTS
STATEMENTS
930 - 10,428
94,930
10,428 10,428
1,931
1,931 50,860
50,860
1,931
10,428 50,860
- 1,931
- 22,807
22,807
- 50,86022,776,255
22,807
22,776,255 - 22,776,255 22,807
9,459,345
893 14,438,893
1,946,036
1,946,036 1,946,036
7,522,506
7,522,506 7,522,506
2,216,628
2,216,628
1,946,036 2,216,628
7,522,506
- - 590,260
590,260
2,216,628
- 504,678,536
504,678,536
590,260 -504,678,536590,260 5
FINANCIAL
FINANCIAL
- - -- - - - - -- -- -- - - 1,220,618
1,220,618
- 174,619,976
- 174,619,976
1,220,618 -174,619,976
1,220,618 1
- - -- - - - - -- - - -- - - -- - -48,675,580
48,675,580
- - 48,675,580 -
- - 409,215
409,215
- 43,919,669
409,215
43,919,669 43,919,669
409,215
- - 527,224
527,224
43,919,669
- 1,762,864
527,224
1,762,864 125,255,308
- 125,255,308
1,762,864
527,224125,255,308
1,762,864 1
589 - 5,853,294
2,324,589
5,853,294 180,447,355
5,853,294
180,447,355 180,447,355
5,853,294 180,447,355
- - 114,661,469
114,661,469 - 24,377,726 433,872,963
114,661,469
24,377,726 433,872,963
114,661,469433,872,963
-24,377,726 24,377,726 4
- - -- - - - - -- - - -- - - -- - - 239,279
239,279
- - 239,279 -
- - -- - - - - -- - - -- - - -- - -16,549,531
16,549,531
- - 16,549,531 -
- - -- - 14,291,880
14,291,880
- 14,291,880 - - - 14,291,880
-- - -- - -22,138,490
22,138,490
- - 22,138,490 -
013
679,962 2,631,178
2,631,178
683,013 2,631,178
4,118,143
4,118,143 177,579
177,579
4,118,143
2,631,178 7,207,395
7,207,395
177,579
4,118,143 7,207,395
1,750,788
1,750,788
177,57943,755,339
1,750,788
7,207,395 43,755,339
43,755,339 1,750,788
0,139,307
425 10,850,151
17,541,425
10,850,151 10,850,151
252,126,783
252,126,783 252,126,783
2,445,067
2,445,067
10,850,151 122,396,088
122,396,088
2,445,067
252,126,783122,396,088
29,725,063
29,725,063
2,445,067
1,392,561,257
1,392,561,257
29,725,063
122,396,088
1,392,561,257
29,725,063 1,3
5,932,662
141 2,738,009
2,738,009
60,141 2,738,009
(87,957,564)
(87,957,564) (87,957,564)
3,242,373
3,242,373
2,738,009 (33,558,515)
(33,558,515)
3,242,373
(87,957,564)
(33,558,515)
10,537,958
10,537,958
3,242,37382,196,444
10,537,958
82,196,444
(33,558,515)82,196,444
10,537,958
989
198,482 117,462
117,462
989 117,462 - - 117,462
- - - - - -- - - 8,869,830
8,869,830
- - 8,869,830 -
2,617,429
- -- - - - - - - - - - - -- - - 61,386,535
61,386,535
- - 61,386,535 -
AC C EL ER ATE 316
316
Notes to the
September 30, 2020
September 30, 2020
(c) Market risk (continued)

(i) Currency risk (continued)
Concentrations of currency risk–on- and off-balance sheet financial instruments (continued)
The Company
J$ US$ TT$ Total
September 30, 2020 $’000 $’000 $’000 $’000
Assets
Due from banks 2,654,216 89,561 17,096 2,760,873

Loan to related party 251,893 - - 251,893
STATEMENTS
STATEMENTS
Investment securities 7,114,685 - - 7,114,685

Other 13,688,273 12,739 - 13,701,012
FINANCIAL
Total financial assets 23,709,067 102,300 17,096 23,828,463

FINANCIAL
THETHE
Liabilities
TOTO
Due to banks 2,617,534 10,741,529 - 13,359,063

- NOTES
- NOTES
Other borrowed funds 19,047,337 56,791,401 - 75,838,738

STATEMENTS
Other 267,028 74,343 30 341,401

STATEMENTS
Total financial liabilities 21,931,899 67,607,273 30 89,539,202

FINANCIAL
Net on-statement of financial position 1,777,168 (67,504,973) 17,066 (65,710,739)

FINANCIAL
The Company
J$ US$ TT$ Total
September 30, 2019 $’000 $’000 $’000 $’000
Assets
Due from banks 3,270,783 557,114 16,271 3,844,168
Loan to related party 251,852 - - 251,852
Other 14,836,687 4,456 - 14,841,143
Total financial assets 25,475,254 561,570 16,271 26,053,095
Liabilities
Due to banks 2,338,352 10,273,668 - 12,612,020
Other borrowed funds 22,403,508 54,104,525 - 76,508,033
Other 336,617 261,017 28,810 626,444
Total financial liabilities 25,078,477 64,639,210 28,810 89,746,497
Net on-statement of financial position 396,777 (64,077,640) (12,539) (63,693,402)
317
Notes to the
September 30, 2020
September 30, 2020

(i) Currency risk (continued)
Concentrations of currency risk – on- and off-statement of financial position financial instruments
(continued)
Foreign currency sensitivity

The following table indicates the currencies to which the Group and the Company have significant
exposures on its monetary assets and liabilities and its forecast cash flows. The change in currency rates
below represents management’s assessment of the possible change in foreign exchange rates. The
sensitivity analysis represents the outstanding foreign currency denominated monetary items and adjusts
their translation at the year-end for changes in foreign currency rates. The sensitivity analysis includes
loans and advances to customers, investment securities and deposits. The correlation of variables will
have a significant effect in determining the ultimate impact on market risk, but to demonstrate the impact
STATEMENTS
due to changes in each variable, variables had to be considered on an individual basis. It should be
STATEMENTS
noted that movements in these variables are non-linear. There was no effect on other comprehensive
income.
FINANCIAL
FINANCIAL
2020 2019
Effect on Profit before % Change in Effect on Profit before
Taxation Currency Rate Taxation
THE
% Change in
THE
Currency Rate The The
TOTO
The Group The Group
Company Company
- NOTES
- NOTES
$’000 $’000 $’000 $’000
Currency:
STATEMENTS
Appreciation 2% (1,549,088) 1,379,439 Appreciation 2% (1,612,112) 1,281,553
STATEMENTS
USD
Depreciation 6% 4,647,265 (4,138,318) Depreciation 4% 3,224,224 (2,563,106)
FINANCIAL
Appreciation 2%
FINANCIAL
GBP (7,404) - Appreciation 2% (1,203) -
Depreciation 6% 22,212 - Depreciation 4% 2,406 -
TTD Appreciation 2% 1,500,653 (342) Appreciation 2% 1,759,151 251
Depreciation 6% (4,501,959) 1,026 Depreciation 4% (3,518,303) (502)
EUR Appreciation 2% (40,740) - Appreciation 2% 54,760 -
Depreciation 6% 122,219 - Depreciation 4% (109,520) -
CAN Appreciation 2% (45,414) - Appreciation 2% (64,867) -
Depreciation 6% 136,242 - Depreciation 4% 129,695 -
NAF Appreciation 2% 736,279 - Appreciation 2% 671,170 -
Depreciation 6% (2,208,837) - Depreciation 4% (1,342,341) -
BMD Appreciation 2% 49,822 - Appreciation 2% (118,653) -
Depreciation 6% (149,467) - Depreciation 4% 237,306 -
AC C EL ER ATE 318
318
Notes to the
September 30, 2020
September 30, 2020
(ii) Interest rate risk

Interest rate risk arises when the Group’s principal and interest cash flows from on- and off-statement
of financial position items have mismatched repricing dates. The short term impact is experienced on
the Group’s net interest income and long term impact is felt on its equity.
The Group incurs interest rate mismatches from its interest bearing assets and liabilities with the size
of such exposure being heavily dependent on the direction and degree of interest rate movements in
addition to the size and maturity structure of the mismatched position. The Group’s policy requires that
such mismatches are managed. Accordingly, the Board requires that a comprehensive system of
limits, gap analysis and stress testing be used to manage the Group’s exposure.
STATEMENTS
Floating rate instruments expose the Group to cash flow interest risk, whereas fixed interest rate
STATEMENTS
instruments expose the Group to fair value interest risk.
The Group’s interest rate risk policy requires it to manage interest rate risk by maintaining an appropriate
FINANCIAL
FINANCIAL
mix of fixed and variable rate instruments. The policy also requires it to manage the maturities of interest
bearing financial assets and interest bearing financial liabilities. Limits are established and monitored
THETHE
with respect to the level of mismatch of interest rate repricing that may be undertaken.
FINANCIAL
STATEMENTS TOTO
- NOTES
- NOTES
319
Notes to the
September 30, 2020
September 30, 2020

(ii) Interest rate risk (continued)
The following tables summarise the exposure to interest rate risk. It includes the financial instruments
at carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
The Group
Non-
Within 1 2 to 3 4 to 12 1 to 5 Over 5 Interest
Month Months Months Years Years Bearing Total
September 30, 2020 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets
Cash in hand and balances at
Central Banks 19,088,057 - - - 1,093,475 53,858,057 74,039,589
STATEMENTS
Due from banks
STATEMENTS
70,002,421 19,584,986 23,409,398 16,362,962 11,960,027 43,052,408 184,372,202
Reverse repurchase
agreements 7,983,610 1,112,346 255,066 141,572 - 26,260 9,518,854
Loans and advances net of
FINANCIAL
FINANCIAL
provision for credit impairment
losses 94,438,573 38,181,018 21,372,931 127,221,066 167,582,374 4,158,974 452,954,936
Investment securities classified
THE
as FVOCI 88,469,555 35,349,728 43,084,007 156,752,577 447,355,520 82,074,585 853,085,972
THE
TOTO
Reinsurance asset - - - - - 26,532,009 26,532,009
- NOTES
- NOTES
Derivative financial instruments - - - - - 653,735 653,735
STATEMENTS
Other - - - - - 42,781,336 42,781,336
STATEMENTS
Total financial assets 279,982,216 94,228,078 88,121,402 300,478,177 627,991,396 253,137,364 1,643,938,633
Liabilities
FINANCIAL
FINANCIAL
Due to banks 6,347,975 7,290,376 12,906,509 - - 3,589,740 30,134,600
Customer deposits 458,785,289 36,178,003 58,517,740 16,450,341 - 4,037,513 573,968,886
Repurchase agreements 97,283,461 35,142,828 73,870,941 88,052 3,726,460 1,324,637 211,436,379
arrangements 2,490,116 - 7,689,417 28,391,592 32,811,086 476,830 71,859,041
Other borrowed funds 6,861,965 12,003,022 24,945,063 73,404,307 6,553,816 1,482,029 125,250,202
Derivative financial instruments - - - - - - -
Lease liabilities 1,983,980 195,585 542,930 1,711,561 163,938 - 4,597,994
Liabilities under annuity,
contracts 1,030,327 1,584,592 10,580,764 68,168,478 310,775,125 54,557,561 446,696,847
Third party interest in mutual
funds 27,572,914 - - - - - 27,572,914
Segregated fund liabilities 13,401 96,271 418,949 1,259,216 12,467,341 - 14,255,178
Other - - - - - 65,688,482 65,688,482
Total financial liabilities 602,369,429 92,490,677 189,472,313 189,473,547 366,497,766 131,156,792 1,571,460,523
On-statement of financial
position interest sensitivity
gap (322,387,212) 1,737,401 (101,350,911) 111,004,630 261,493,630 121,980,572 72,478,110
Cumulative interest
sensitivity gap (322,387,212) (320,649,811) (422,000,722) (310,996,092) (49,502,462) 72,478,110
AC C EL ER ATE 320
320
Notes to the
September 30, 2020
September 30, 2020


Non-
Within 1 2 to 3 4 to 12 1 to 5 Over 5 Interest
Month Months Months Years Years Bearing Total
September 30, 2019 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets
Cash in hand and balances at
Central Banks 10,010,223 - - - 373,651 52,151,515 62,535,389
Due from banks 58,951,980 5,769,434 34,299,486 13,331,712 6,394,324 28,288,140 147,035,076
STATEMENTS
Investment securities at fair

STATEMENTS
value through profit or loss 5,460,400 2,080,600 292,074 - - 4,824 7,837,898

Reverse repurchase
agreements 104,071,755 42,859,635 15,755,450 112,700,441 145,940,268 1,775,051 423,102,600
FINANCIAL
Loans and advances net of

FINANCIAL
provision for credit losses 95,712,537 34,351,243 51,279,814 132,256,815 375,766,950 70,128,647 759,496,006
as available-for-sale and
THETHE
loans and receivables - - - - - 33,779,448 33,779,448

TOTO
- NOTES

- NOTES
Other 1,155 - 803,268 - - 39,927,582 40,732,005

STATEMENTS
Total financial assets 274,208,050 85,060,912 102,430,092 258,288,968 528,475,193 226,294,486 1,474,757,701
STATEMENTS
Liabilities
FINANCIAL
FINANCIAL
Due to banks 9,968,510 4,390,815 2,049,994 3,010,650 - 3,356,286 22,776,255

Customer deposits 406,550,494 19,119,461 49,791,936 27,100,771 - 2,115,874 504,678,536
Repurchase agreements 74,319,092 35,276,619 22,643,341 41,508,658 - 872,266 174,619,976
arrangements 1,634,716 1,117,850 12,498,311 25,293,550 7,565,430 565,723 48,675,580
Other borrowed funds 1,176,427 20,740,423 4,773,346 85,266,182 12,328,243 970,687 125,255,308
Liabilities under annuity,
contracts 60,232,904 1,067,517 8,257,479 75,866,254 205,170,291 83,278,518 433,872,963
Third party interest in mutual
funds 22,138,490 - - - - - 22,138,490
Segregated fund liabilities 19,163 14,458 93,814 484,305 15,937,791 - 16,549,531
Other 9,687,871 - - - - 34,067,468 43,755,339
Total financial liabilities 585,727,667 81,727,143 100,108,221 258,530,370 241,001,755 125,466,101 1,392,561,257
gap (311,519,617) 3,333,769 2,321,871 (241,402) 287,473,438 100,828,385 82,196,444
Cumulative interest sensitivity
gap (311,519,617) (308,185,848) (305,863,977) (306,105,379) (18,631,941) 82,196,444
321
Notes to the
September 30, 2020
September 30, 2020

The Company
Within 1 2 to 3 4 to 12 1 to 5 Over Non-Interest
Month Months Months Years 5 Years Bearing Total
September 30, 2020 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets
Due from banks 2,760,873 - - - - - 2,760,873
Loan to related party - - 250,000 - - 1,905 251,905

as FVOCI - - - - 7,000,000 114,685 7,114,685
STATEMENTS
STATEMENTS
Other - - - - - 13,701,012 13,701,012
Total financial assets 2,760,873 250,000 - 7,000,000 15,023,602 23,828,475
FINANCIAL
FINANCIAL
Liabilities
Due to banks - - 13,117,877 - - 241,186 13,359,063
THE
Other borrowed funds - 2,000,000 30,419,271 42,436,800 - 884,306 75,740,377
THE
TOTO
Lease liabilities - - - 98,361 - - 98,361
- NOTES
- NOTES
Other - - - - 341,401 341,401
STATEMENTS
Total financial liabilities - 2,000,000 43,537,147 42,535,161 - 1,466,893 89,539,202
STATEMENTS
gap 2,760,873 (2,000,000) (43,287,147) (42,535,161) 7,000,000 12,350,697 (65,710,739)
FINANCIAL
Cumulative interest
FINANCIAL
sensitivity gap 2,760,873 760,873 (42,526,275) (85,061,436) (78,061,436) (65,710,739) -
September 30, 2019

Assets
Due from banks 3,844,168 - - - - - 3,844,168
Loan to related party - - - 250,000 - 1,852 251,852
as FVOCI - - - - 7,000,000 115,932 7,115,932
Other - - - - - 14,841,143 14,841,143
Total financial assets 3,844,168 - - 250,000 7,000,000 14,958,927 26,053,095
Liabilities
Due to banks 2,500,000 - - 10,060,650 - 51,370 12,612,020
Other borrowed funds - - 10,240,993 65,168,510 - 1,098,530 76,508,033
Other - - - - - 626,444 626,444
Total financial liabilities 2,500,000 - 10,240,993 75,229,160 - 1,776,344 89,746,497
gap 1,344,168 - (10,240,993) (74,979,160) 7,000,000 13,182,583 (63,693,402)
1,344,168 1,344,168 (8,896,825) (83,875,985) (76,875,985) (63,693,402)
AC C EL ER ATE 322
322
Notes to the
September 30, 2020
September 30, 2020

The tables below summarise the effective interest rates for financial instruments by major currencies.
J$ US$ CAN$ GBP BMD TTD EURO J$ US$ TT$ GBP
% % % % % % % % % % %
September 30, 2020
Assets
Balances at Central Banks 0.50 - - - - - - - - - -
Due from banks 3.62 - - - - 1.00 - - - - -
Reverse repurchase agreements 2.07 2.33 - - - - - - - - -
Loans and advances 12.80 9.36 - - 6.67 5.93 1.50 5.75 - - -
STATEMENTS
STATEMENTS
Investment securities 5.28 4.58 0.98 2.33 - 5.59 - 6.50 - - -

Liabilities - - - -
FINANCIAL
Due to banks - 3.77 - - - - - - - - -

FINANCIAL
Customer deposits 2.36 1.46 0.21 0.62 1.47 - - - - - -

Lease liabilities 9.75 6.25 - - - - - - - - -
THETHE
Repurchase agreements 4.39 2.64 - - - 2.55 - - - - -

TOTO
- NOTES
- NOTES

arrangements - 5.49 - - - - - - - - -
STATEMENTS
Other borrowed funds 6.58 6.64 - - - - - 6.77 6.43 - -

STATEMENTS
September 30, 2019

FINANCIAL
FINANCIAL
Assets
Balances at Central Banks 0.74 - - - - - - - -
Due from banks 2.00 1.90 1.08 0.01 0.03 2.00 0.1 - 5.25 - -
- -
Reverse repurchase agreements 1.74 1.94 - - - - - - -
Loans and advances 13.00 6.00 - - 7.06 4.00 2.00 - - - -
Investment securities classified as

available-for-sale and loans
and receivables 5.22 4.00 1.00 2.25 - 4.86 2.00 6.50 - - -
Liabilities
Due to banks - 6..60 - - - - - - - - -
Customer deposits 1.00 6.00 0.01 0.16 1.21 - - - - - -
-
Repurchase agreements 1.26 4.13 - - - - - - - -
Obligations under securitisation - - -
arrangements - 6.38 - - - - - -
Other borrowed funds 6.59 6.42 - - - - - 6.50 7.03 - -
323
Notes to the
September 30, 2020
September 30, 2020

Interest rate sensitivity

The following table indicates the sensitivity to a reasonable possible change in interest rates, with all other
variables held constant, on the income statement and stockholders’ equity.
The sensitivity of the profit or loss is the effect of the assumed changes in interest rates on net income
based on the floating rate of non-trading financial assets and financial liabilities. The sensitivity of other
comprehensive income is calculated by revaluing fixed rate FVOCI (2019 - available-for-sale) financial
assets for the effects of the assumed changes in interest rates.
The Group
STATEMENTS
STATEMENTS
Effect on
Effect on Other
Net Profit Comprehensive
FINANCIAL
Before Tax Income
FINANCIAL
2020 2020
THE
$’000 $’000
THE
TOTO
Change in basis points:
- NOTES
- NOTES
Decrease - JMD -100 and USD -100 (491,066) 11,987,113
STATEMENTS
Increase - JMD +100 and USD +100 213,260 (12,065,855)
STATEMENTS
FINANCIAL
Effect on
FINANCIAL
Effect on Other
Net Profit Comprehensive
Before Tax Income
2019 2019
$’000 $’000
Change in basis points:
Decrease - JMD -100 and USD -50 (557,195) 16,694,783
Increase - JMD +100 and USD +50 489,608 (14,886,152)
The financial instruments of the Company attract a fixed rate of interest and are not subject to fair value
interest rate risk.
AC C EL ER ATE 324
324
Notes to the
September 30, 2020
September 30, 2020

(iii) Other price risk
The Group is exposed to equity securities price risk because of investments held by the Group and
classified either as at fair value through profit or loss or available-for-sale. To manage its price risk arising
from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is
done in accordance with the limits set by the Group.
The Group’s investments in quoted equity securities are of entities that are publicly traded on the relevant
stock exchanges.
Sensitivity to changes in price of equity securities

The following table indicates the sensitivity to a reasonable possible change in prices of equity securities,
STATEMENTS
with all other variables held constant, on the income statement and stockholders’ equity.
STATEMENTS
The sensitivity of the profit or loss is the effect of the assumed fair value changes of investment securities
classified at fair value through profit or loss. The sensitivity of other comprehensive income is the effect of
FINANCIAL
FINANCIAL
the assumed fair value changes of investment securities classified as FVOCI (2019 - available-for-sale).
THETHE
The Group
TOTO
Effect on Effect on
- NOTES
Effect on Effect on
- NOTES
Other Other
Net Profit Comprehensive Net Profit Comprehensive
STATEMENTS
Before Tax Income Before Tax Income

STATEMENTS
2020 2020 2019 2019

$’000 $’000 $’000 $’000
FINANCIAL
Percentage change in share price

FINANCIAL
10% decrease (7,087,946) - (5,185,901) -
10% increase 7,087,946 - 5,185,901 -
(d) Derivative financial instruments

The Group’s derivative transactions are primarily directed at hedging its risk exposures which arise during
the normal course of its treasury and investment activities. When entering into derivative transactions, the
Group employs the same credit risk management procedures to assess and approve potential credit
exposures that are used for traditional lending.
325
Notes to the
September 30, 2020
September 30, 2020
(e) Insurance risk

The Group issues contracts that transfer insurance risk or financial risk or both.
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty
of the amount of the resulting claim. By the very nature of an insurance contract this risk is random and
therefore unpredictable. Experience shows that the larger the portfolio of similar insurance contracts, the
smaller will be the relative variability about the expected outcome. In addition, a more diversified portfolio is
less likely to be affected across the board by a change in any subset of the portfolio.
For a portfolio of insurance contracts where the theory of probability is applied to pricing and provisioning,
the principal risk that the Group faces under insurance contracts is that the actual claims and benefit
payments exceed the carrying amount of the insurance liabilities. This could occur because the frequency of
or severity of claims and benefits will vary from year to year from the estimate established using statistical
techniques.
STATEMENTS
STATEMENTS
Life insurance risk
The Group issues contracts that have a maximum period determined by the remaining life of the insured. In
FINANCIAL
addition to the estimated benefits which may be payable under the contract, the Group has to assess the
FINANCIAL
cash flows which may be attributable to the contract. The process of underwriting may also be undertaken
and may include specific medical tests and other enquiries which affect the Group’s assessment of the risk.
THE
THE
TOTO
Frequency and severity of claims
- NOTES
- NOTES
For contracts where death is the insured risk, the most significant factors that could increase the overall
frequency and severity of claims are epidemics and wide-ranging lifestyle changes, such as in eating,
STATEMENTS
smoking and exercise habits, resulting in earlier or more claims than expected. For contracts where survival
STATEMENTS
is the insured risk, the most significant factor is continued improvement in medical science and social
conditions that would increase longevity.
FINANCIAL
FINANCIAL
At present, these risks do not vary significantly in relation to the location of the risk insured by the Group.
However, undue concentration could have an impact on the severity of benefit payments on a portfolio basis.
For contracts with fixed and guaranteed terms, there are no mitigating terms and conditions that reduce the
insurance risk accepted. For contracts without fixed terms, a significant portion of the insurance risk is shared
with the insured party. The Group charges for mortality risk on a monthly basis for most life and critical
insurance contracts without fixed terms. It has the right to alter these charges based on its mortality
experience and hence minimise its exposure to mortality risk.
The Group charges for mortality risks on a monthly basis for insurance contracts with investment options and
has the right to alter these charges based on mortality experience and hence to minimise its exposure to
mortality risk on these contracts. Delays in implementing increases in mortality charges, and contractual,
market or regulatory restraints over the extent of any increases, may reduce this mitigating effect.
The Group also manages mortality risks on its contracts through its underwriting strategy and reinsurance
arrangements. The underwriting strategy is intended to minimise the risk of anti-selection. The Group’s
underwriting strategy has a twofold approach:
a) products that are subject to traditional methods of application and assessment are controlled by
traditional underwriting methods including medical and financial selection with benefits being limited to
reflect the health and/or financial condition of applicants and by the application of retention limits on any
single life insured.
AC C EL ER ATE 326
326
Notes to the
September 30, 2020
September 30, 2020
(e) Insurance risk (continued)

Life insurance risk (continued)
Frequency and severity of claims (continued)
b) products which are not subject to traditional methods of application and assessment contain pre-existing
conditions and exclusionary clauses for certain types of high-risk medical and financial events, with
claims on these types of policies examined for breaches to those clauses and denied or settled
accordingly.
The tables below indicate the concentration of insured benefits across bands of insured benefits per individual
life assured. The Group uses catastrophe re-insurance cover against its Individual contracts as the main risks
faced by these contracts are interest rate and liquidity:

STATEMENTS
STATEMENTS
Total Benefits Assured - Individual

2020 2019
Before Re- After Re- Before Re- After Re-
FINANCIAL
insurance insurance insurance insurance

FINANCIAL
Benefits assured per life

assured ($’000)
THETHE
TT$0 - 250 461,463,622 449,904,093 437,455,420 425,672,206

TOTO
TT$251 - 500 523,375,165 443,206,016 480,961,887 399,491,357

- NOTES
TT$501 - 1,000 435,609,347 299,214,903 386,029,343 248,694,510

- NOTES
TT$1,001 - 3,000 203,820,720 97,753,145 178,575,425 75,703,467

STATEMENTS
More than TT$3,000 98,734,680 11,900,300 87,440,378 17,377,758

STATEMENTS
Total 1,723,003,534 1,301,978,458 1,570,462,454 1,166,939,297

FINANCIAL
FINANCIAL
Total Benefits Assured - Individual

2020 2019
Before Re- After Re- Before Re- After Re-
insurance insurance insurance insurance
Benefits assured per life
assured ($’000)
0 – 1,000 267,306,120 260,877,477 398,636,997 391,696,393
1,000 – 2,000 36,759,579 30,104,858 56,354,008 45,516,356
2,000 – 5,000 8,280,893 5,005,271 17,725,963 9,625,894
5,000 – 10,000 6,013,268 3,256,948 11,582,686 5,640,625
Over 10,000 13,130,077 5,036,987 22,282,827 7,829,275
331,489,936 304,291,541 506,582,482 460,308,542
For the Dutch Caribbean life insurance subsidiaries:

Total Benefits Insured
2020 2019
Benefits assured per life Before Re- After Re- Before Re- After Re-
assured ($’000) insurance insurance insurance insurance
NAF$10,001 - 20,000 203,317,727 198,331,422 204,548,251 199,369,716

NAF$20,001 - 30,000 17,368,852 7,631,986 17,864,655 9,098,422
NAF$30,001 - 40,000 5,829,588 3,000,165 5,519,830 2,942,187
NAF$40,001 - 50,000 2,494,199 153,115 1,827,431 275,387
More than NAF$50,000 2,294,484 425,536 1,988,834 357,353
Total 231,304,851 209,542,224 231,748,979 212,043,066
327
Notes to the
September 30, 2020
September 30, 2020
The Group uses catastrophe re-insurance cover against its Ordinary Life, Group Life and Creditor Life contracts
as the main risks faced by these contracts are interest rate and liquidity.
• The premium ceded during the year in respect of catastrophe re-insurance cover amounted to $23,112,000
(2019 – $19,571,000).
• Policyholders’ benefits recovered from reinsurers during the year under these contracts amounted to $Nil
(2019 – $66,277,000).
• At September 30, 2020, premiums payable under re-insurance contracts amounted to $Nil
(2019 – $13,988,000).
The following tables for annuity insurance contracts illustrate the concentration of risk based on bands that
group these contracts in relation to the amount payable per annum, as if the annuity were in payment at the
STATEMENTS
year end.
STATEMENTS
For the Trinidadian life insurance subsidiaries
FINANCIAL
Total Annuities Payable
FINANCIAL
2020 2019
Annuity payable per annum per annuitant ($’000)
THE
TT$0-5,000 143,171 133,031
THE
TOTO
TT$5,001-10,000 494,598 440,615
- NOTES
TT$10,001-20,000 856,870 763,779
- NOTES
More than TT$20,000 2,185,750 1,963,699
STATEMENTS
Total 3,680,390 3,301,124
STATEMENTS
For the Jamaican life insurance subsidiaries
FINANCIAL
FINANCIAL
2020 2019
Annuity payable per annum per annuitant ($’000)
0 -100 509,902 283,535
100 – 300 257,578 456,968
300 – 500 251,298 388,932
500 – 1,000 226,553 618,877
Over 1,000 2,629,834 1,974,862
Total 3,875,164 3,723,174
For the Dutch Caribbean life insurance subsidiaries

2020 2019
Annuity payable per annum per life
NAF$0 - 10,000 759,964 689,463
NAF$10,001 - 20,000 547,060 496,740
NAF$20,001 - 30,000 339,809 296,267
NAF$30,001 - 40,000 191,865 172,301
NAF$40,001 - 50,000 156,737 142,694
More than NAF$50,000 438,955 387,259
Total 2,434,389 2,184,724
AC C EL ER ATE 328
328
Notes to the
September 30, 2020
September 30, 2020

Apart from the catastrophe cover, the Group does not hold any re-insurance against the liabilities in these
contracts.
Insurance risk for contracts disclosed in this note is also affected by the contract holders’ right to pay reduced
or no future premiums, or to terminate the contract completely. As a result, the amount of insurance risk is
also subject to contract holders’ behaviour. The Group has factored the impact of contract holders’ behaviour
into the assumptions used to measure these liabilities.
Sources of uncertainty in the estimation of future benefit payments and premium payments
Uncertainty in the estimation of future benefit payments and premium receipts for long term insurance
STATEMENTS
STATEMENTS
contracts arises from the unpredictability of long term changes in overall levels of mortality and morbidity
and the variability in policyholder behaviour.
FINANCIAL
The Group uses appropriate base tables of standard mortality and morbidity according to the type of contract
FINANCIAL
being written. An investigation as to the actual experience of the Group is carried out by the Appointed
Actuaries, and a comparison of the actual rates with expected rates is performed. Where data are
THETHE
insufficient to be statistically credible, the best estimates of future mortality and morbidity are based on
TOTO
standard industry tables adjusted for the Group’s overall experience. For contracts that insure survival, an
- NOTES
- NOTES
adjustment is made for future mortality and morbidity improvements based on trends identified in the
continuous mortality and morbidity investigations performed by independent actuarial bodies. The Group
STATEMENTS
STATEMENTS
maintains voluntary termination statistics to investigate the deviation of actual termination experience
against assumptions. Statistical methods are used to determine appropriate termination rates to be used
for the best estimate assumption.
FINANCIAL
FINANCIAL
329
Notes to the
September 30, 2020
September 30, 2020

Process used in deriving assumptions

The assumptions for insurance contracts and the process used in deriving these assumptions have remained
substantially unchanged since the previous year.
Estimates are made in two stages:

(i) At inception of the contract, the Group determines assumptions in relation to future deaths, voluntary
terminations, investment returns and administration expenses. These assumptions are used as the base
assumptions for calculating the liabilities; and
(ii) Subsequently, new estimates are developed at each reporting date and the assumptions are altered to
reflect the latest current estimates or experience.
STATEMENTS
STATEMENTS
Assumptions are considered to be ‘best estimate’ if, on average, the results are expected to be worse than
the assumptions in 50% of possible scenarios and better in the other 50%. In the case of Jamaica and
FINANCIAL
Trinidad and Tobago, the assumptions are best estimate assumptions with appropriate provisions for
FINANCIAL
adverse deviations, consistent with the use of a Policy Premium Method valuation. For other territories, the
assumptions used are those appropriate for traditional net premium valuation methods. See Note 39 for
THE
THE
details on policy assumptions.
TOTO
- NOTES
- NOTES
Reinsurance risk
Reinsurance risk is the risk that a reinsurer will default and not honour obligations arising from claims. The
STATEMENTS
STATEMENTS
Group limits the probable loss in the event of individual deaths and any single catastrophic accident
occurrence by reinsuring its insurance risk above certain limits with other insurers. Reinsurance ceded does
not discharge the Group’s liability as the primary insurer. The Group manages reinsurance risk by selecting
FINANCIAL
FINANCIAL
reinsurers with high credit ratings and monitoring these on an ongoing basis. The Group arranges its
reinsurance by type of insurance coverage:
• Individual life – This business is covered by excess of loss and quota share reinsurance arrangements.
The method of reinsurance varies for different products with the majority being reinsured on a Yearly
Renewable Term (YRT) basis and others being co-insured.
• Group life – The group life portfolio is reinsured on an excess reinsurance arrangement with Swiss Re.
Separate treaties exist for group life (including critical illness and accidental death and dismemberment)
and group mortgage.
• Catastrophe cover – This cover has been secured for individual life and group life portfolio. It is renewable
annually and is held with Sirius International, RGA and Swiss Re.
Retention limits represent the level of risk retained by the insurer. Coverage in excess of these limits is ceded
to reinsurers up to the treaty limit.
AC C EL ER ATE 330
330
Notes to the
September 30, 2020
September 30, 2020

Property and casualty insurance risk
The Group manages its property and casualty insurance risk through its underwriting policy that includes
inter alia, authority limits, approval procedures for transactions that exceed set limits, pricing guidelines and
the centralised management of reinsurance. The Group actively monitors insurance risk exposures both for
individual and portfolio types of risks. These methods include internal risk measurement, portfolio modelling
and scenario analyses.
Underwriting strategy
The Group manages the risks arising from its underwriting of property and casualty insurance contracts
through policies which provide guidance on how to determine the insurability of risks and exposure to large
claims. The Group follows detailed, uniform underwriting practices and procedures designed to properly
assess and quantify risks before issuing coverage. The Group’s underwriting guidelines also outline
STATEMENTS
acceptance limits and the appropriate levels of authority for acceptance of risks.
STATEMENTS
Reinsurance strategy
FINANCIAL
A detailed analysis of the Group’s exposures, reinsurance needs and quality of reinsurance securities is
FINANCIAL
conducted by the Board and Senior Management. The Group’s exposures are continually evaluated by
Management to ensure that its reinsurance arrangements remain adequate and mechanisms are in place
THETHE
to continually monitor the reinsurance counterparties to ensure that they maintain ratings in keeping with the
TOTO
Board approved Reinsurance Risk Management Policy.

STATEMENTS
FINANCIAL
FINANCIAL - NOTES
- NOTES
STATEMENTS
331
Notes to the
September 30, 2020
September 30, 2020

Property and casualty insurance risk (continued)
Motor insurance
Motor insurance contracts provide cover in respect of policyholders’ motor vehicles and their liability to third
parties in respect of damage to property and injury. The exposure on motor insurance contracts is normally
limited to the replacement value of the vehicle and a policy limit in respect of third party damage. In general,
claims reporting lags are minor and claims complexity is relatively low.
The risks relating to motor contracts are managed primarily through the pricing and selection process. The
Group monitors and reacts to changes in trends of injury awards, litigation and the frequency of claims
appeals.
STATEMENTS
STATEMENTS
Property insurance
Property insurance indemnifies, subject to any limits or excesses, the policyholder against the loss or
damage to their own material property and business interruption arising from this damage. The risk on any
FINANCIAL
policy varies according to many factors such as location, safety measures in place and the age of the
FINANCIAL
property. The event giving rise to a claim for damage to buildings or contents usually occurs suddenly (as
for fire and burglary) and the cause is easily determinable. Therefore, claims are generally notified promptly
THE
THE
and can be settled without delay. Property business is therefore classified as “short-tailed” and expense
TOTO
deterioration and investment return is of less importance in estimating provisions. The cost of repairing or
- NOTES
- NOTES
rebuilding assets, of replacement or indemnity for contents and the time taken to restart or resume
operations to original levels for business interruption losses are the key factors influencing the level of claims
STATEMENTS
STATEMENTS
under these policies.
The risks relating to property contracts are managed primarily through the pricing and selection process.
FINANCIAL
FINANCIAL
The Group uses strict underwriting criteria to ensure that the risk of losses is acceptable. Furthermore, the
Group accepts property insurance risks for one year so that each contract can be re-priced on renewal to
reflect the continually evolving risk profile.
Liability insurance
Under these contracts, compensation is paid for injury suffered by individuals, including employees or
members of the public. The main liability exposure is in relation to bodily injury. The timing of claim reporting
and settlement is a function of factors such as the nature of the coverage and the policy provisions. Although
bodily injury claims have a relatively long tail, the majority of bodily injury claims are settled in full within three
to four years. In general, these contracts involve higher estimation uncertainty.
Risks arising from liability insurance are managed primarily through pricing, product design, risk selection,
adopting an appropriate investment strategy, rating and reinsurance. The Group monitors and reacts to
changes in the general economic and commercial environment in which it operates to ensure that only
liability risks which meet its criteria for profitability are underwritten. In pricing contracts, the Group makes
assumptions that costs will increase in line with the latest available research.
AC C EL ER ATE 332
332
Notes to the
September 30, 2020
September 30, 2020

Risk exposure and concentrations of risk
The following table shows the Group’s exposure to property and casualty insurance risk (based on the
carrying value of insurance provisions at the reporting date) per major category of business:
2020
Liability Property Motor Other Total
$’000 $’000 $’000 $’000 $’000
Gross 3,746,899 8,708,312 8,852,677 1,445,318 22,753,206
Net of proportional reinsurance 2,309,389 1,278,072 5,476,968 398,656 9,463,085
STATEMENTS
2019
STATEMENTS
Gross 4,245,841 21,095,439 8,088,166 2,474,577 35,904,023

Net of proportional reinsurance 2,418,431 4,875,350 5,598,687 401,544 13,291,909
FINANCIAL
FINANCIAL
Claims development
Claims development information is disclosed in order to illustrate the property and casualty insurance risk
THETHE
inherent in the Group. The upper section of the table shows how the estimates of total claims for each accident
TOTO
- NOTES
year develop over time. The estimates are increased or decreased as losses are paid and more information
- NOTES
becomes known about the severity of unpaid claims. The lower section of the table provides a reconciliation
of the total provision included in the statement of financial position and the estimate of cumulative claims.
STATEMENTS
STATEMENTS
The top half of each table below illustrates how the Group's estimate of total claims outstanding for each
accident year/underwriting year has changed at successive year-ends. The bottom half of the table reconciles
FINANCIAL
FINANCIAL
the cumulative claims to the amount appearing on the consolidated statement of financial position as per
summary below.
Total
$'000
Insurance claims - gross
By accident year 18,920,685
By underwriting year 3,832,521
Total liability (Note 39) 22,753,206
Insurance claims - net
By accident year 8,168,600
By underwriting year 1,294,985
Total liability (Note 39) 9,463,085
333
Notes to the
September 30, 2020
September 30, 2020

Risk exposure and concentrations of risk(continued)
2013 2014 2015 2016 2017 2018 2019 2020 Total
Insurance claims – gross $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Accident year
Estimate of cumulative claims
costs:
Claims at end of accident year 10,258,031 10,595,055 12,220,012 14,784,153 55,463,927 14,012,089 22,704,679 12,427,996 -
One year later 9,308,672 9,636,716 10,751,855 13,576,295 59,783,049 10,883,553 22,717,429 - -
Two years later 9,567,297 10,141,090 11,053,918 13,297,804 52,656,883 10,220,642 - - -
Three years later 9,162,779 10,132,235 10,862,075 13,298,160 51,040,321 - - - -

Four years later 9,009,623 9,912,758 10,649,003 11,974,178 - - - - -
Five years later 8,921,823 9,785,251 9,121,476 - - - - - -
Six years later 8,878,552 8,699,499 - - - - - - -
Seven years later 7,654,239 - - - - - - - -
Current estimate of cumulative 10,220,642 22,717,429 12,427,996 133,855,779

7,654,239 8,699,499 9,121,476 11,974,178 51,040,321
claims
Cumulative payments to date 7,429,173 8,226,610 8,365,049 11,130,790 49,649,265 8,770,802 18,969,818 3,914,957 116,356,463
Liability recognised in the

consolidated statement of 225,067 472,889 756,426 843,388 1,391,056 1,449,840 3,747,610 8,613,039 17,499,316
financial position
Liability in respect of prior years - - - - - - - - 1,421,369

Total liability - - - - - - - - 18,920,685
www.myncb.com
334
FINANCIAL
STATEMENTS -- NOTES
NOTES TO
TO THE
335
Notes to the
September 30, 2020
September 30, 2020

2013 2014 2015 2016 2017 2018 2019 2020 Total
Insurance claims – gross $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Underwriting year
Estimate of cumulative claims costs:
Claims at end of accident year 1,306,731 757,033 584,219 489,323 506,866 390,491 207,042 335,894 -
One year later 1,511,764 944,041 765,910 557,883 620,959 442,451 299,342 - -
Two years later 1,436,525 864,030 702,478 524,158 597,261 419,213 - - -
Three years later 1,412,220 841,044 710,852 511,723 592,886 - - - -
Four years later 1,387,141 822,412 690,734 504,647 - - - - -
Five years later 1,377,783 827,436 686,819 - - - - - -
Six years later 1,374,036 806,229 - - - - - - -
Current estimate of cumulative claims 1,370,728 806,229 686,819 504,647 592,886 419,213 299,342 335,894 5,015,760
Cumulative payments to date 1,333,109 773,216 645,222 455,472 450,448 267,773 98,392 - 4,023,632
Liability recognised in the consolidated

statement of financial position 37,619 33,014 41,597 49,175 142,438 151,440 200,950 335,894 992,128
Liability in respect of prior years - - - - - - - - 2,840,393

Total liability - - - - - - - - 3,832,521
Notes to the
September 30, 2020
(expressed in Jamaican
Notes dollars unless
to the Financial otherwise indicated)
Statements
September 30, 2020

2013 2014 2015 2016 2017 2018 2019 2020 Total
Insurance claims – net $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Accident year
Estimate of cumulative claims
costs:
Claims at end of accident year 6,186,877 7,599,579 7,090,117 8,317,800 21,255,907 8,292,469 7,396,096 4,559,220 -
One year later 4,571,927 6,753,344 6,140,319 7,266,135 20,159,986 6,814,912 12,218,944 - -
Two years later 4,930,452 7,066,545 6,319,414 6,675,468 19,805,167 6,546,846 - - -
Three years later 4,726,968 7,082,560 6,423,102 6,995,703 19,748,875 - - - -

Four years later 4,885,254 6,612,392 6,030,853 6,827,306 - - - - -
Five years later 4,885,338 6,721,691 6,039,980 - - - - - -
Six years later 4,758,854 6,537,321 - - - - - - -
Current estimate of cumulative

claims 4,863,671 6,537,321 6,039,980 6,827,306 19,748,875 6,546,846 12,218,944 4,559,220 67,342,162
Cumulative payments to date 4,586,835 6,129,496 5,515,948 6,063,552 19,138,697 5,486,095 10,727,236 2,090,038 59,737,496

consolidated statement of 277,236 407,825 524,032 763,753 610,178 1,060,751 1,491,709 2,469,182 7,604,666
financial position
Liability in respect of prior years - - - - - - - - 563,934

Total liability - - - - - - - - 8,168,660
www.myncb.com
336
FINANCIAL
STATEMENTS -- NOTES
NOTES TO
TO THE
337
Notes to the
September 30, 2020
September 30, 2020

2013 2014 2015 2016 2017 2018 2019 2020 Total
Insurance claims – net $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Underwriting year
Estimate of cumulative claims costs:
Claims at end of accident year 1,306,731 757,033 584,219 489,323 506,866 390,491 207,042 335,894 -
One year later 1,511,764 944,041 765,910 557,883 620,959 442,451 299,342 - -
Two years later 1,436,525 864,030 702,478 524,158 597,261 419,213 - - -
Three years later 1,412,220 841,044 710,852 511,723 592,886 - - - -
Four years later 1,387,141 822,412 690,734 504,647 - - - - -
Five years later 1,377,783 827,436 686,819 - - - - - -
Six years later 1,374,036 806,229 - - - - - - -
Current estimate of cumulative claims 1,370,728 806,229 686,819 504,647 592,886 419,2136 299,342 335,894 5,015,760
Cumulative payments to date 1,333,109 773,216 645,222 455,472 450,448 267,773 98,392 - 4,023,632

consolidated statement of financial 37,619 33,014 41,597 49,175 142,438 151,440 200,950 335,894 992,128
position
Liability in respect of prior years - - - - - - - - 302,357

Total liability - - - - - - - - 1,294,485
Notes to the
September 30, 2020
September 30, 2020
(f) Capital management

The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of
the statement of financial position, are:
• To comply with the capital requirements set by the regulators of the financial markets where the entities
within the Group operate;
• To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns
for stockholders and benefits for other stakeholders; and
• To maintain a strong capital base to support the development of its business.
All of the Group’s significant subsidiaries and associates are individually regulated by the relevant regulator
in their jurisdiction or other regulators. The regulatory requirements to which the subsidiaries are subject,
include minimum capital and liquidity requirements which may limit their ability to extract capital or funds for
other uses. The Group’s subsidiaries and associates are also subject to statutory requirements to restrict
STATEMENTS
STATEMENTS
distributions of capital and generally to maintain solvency. In most cases, the regulatory restrictions are
more onerous than the statutory restrictions. Certain Group subsidiaries also raise finance using their
financial assets as collateral. Encumbered assets are not available for transfer around the Group. The
FINANCIAL
assets typically affected are disclosed in Note 23.
FINANCIAL
(i) National Commercial Bank Jamaica Limited
THE
THE
Capital adequacy and the use of regulatory capital are monitored daily by the Bank’s management,
TOTO
employing techniques based on the guidelines developed by the Bank of Jamaica (BOJ/Central Bank),
- NOTES
- NOTES
and the relevant management committees. The required information is filed with the regulator at the
stipulated intervals.
STATEMENTS
STATEMENTS
The Central Bank requires the Bank to:
• Hold a specified level of the regulatory capital, and
FINANCIAL
FINANCIAL
• Maintain a ratio of total regulatory capital to the risk-weighted assets.
The Bank's regulatory capital is divided into two tiers:
Tier 1 capital: ordinary share capital, non-redeemable non-cumulative preference shares, statutory
reserve fund and retained earnings reserves. Goodwill, other intangibles and any net loss arising from
the aggregate of: current year profit or loss, undistributed profits or accumulated losses for prior financial
years any loss positions on revaluation reserves arising from fair value accounting, are deducted in
arriving at Tier 1 capital; and
Tier 2 capital: non-redeemable cumulative preference shares, redeemable preference shares having an
original term to maturity of five years or more, qualifying subordinated debt and general provisions for
loss.
Equity investments in unconsolidated subsidiaries, substantial investment in any other unconsolidated

entities or companies and share of accumulated losses of any unconsolidated entities are deducted from
Tier 1 and Tier 2 capital to arrive at the regulatory capital. The risk-weighted assets are measured by
means of a hierarchy of four risk weights classified according to the nature of and reflecting an estimate
of credit, market and other risks associated with each asset and counterparty, taking into account any
eligible collateral or guarantees. A similar treatment is adopted for off-statement of financial position
exposure, with some adjustments to reflect the more contingent nature of the potential losses.
The Bank met all the regulatory capital requirements as at September 30, 2020.
AC C EL ER ATE 338
338
Notes to the
September 30, 2020
September 30, 2020
(f) Capital management (continued)

(ii) NCB Insurance Agency & Fund Management Limited (formerly NCBIC)
NCBIAFM maintains a capital structure consisting mainly of shareholders’ funds consistent with its
profile and the regulatory and market requirements. The company is subject to a number of regulatory
capital tests and also employs scenario testing on an annual basis to assess the adequacy of capital.
The company has met all of these requirements during the year. Capital adequacy is managed at the
operational level.
In reporting financial strength, capital and solvency is measured using the regulations prescribed by the
Financial Services Commission (FSC) in Jamaica. These regulatory capital tests are based upon
required levels of solvency capital and a series of prudent assumptions in respect of the type of business
written by the company.
STATEMENTS
STATEMENTS
The relevant capital requirement is the Minimum Continuing Capital Surplus Ratio (MCCSR) determined
in accordance with the FSC regulations. This ratio is calculated by the Appointed Actuary and reviewed
by executive management, the Audit Committee and the Board of Directors. This measure is a risk-
FINANCIAL
FINANCIAL
based formula that compares available capital and surplus to a minimum requirement set by the FSC
in regard to the asset and liability profile of the company. The company met all FSC regulatory capital
THETHE
requirements as at September 30, 2020.

TOTO
- NOTES
The company’s capital position is sensitive to changes in market conditions, due to both changes in the
- NOTES
value of assets and the effect that changes in investment conditions may have on the value of the
STATEMENTS
liabilities. The most significant sensitivities arise from changes in interest rates and expenses. The
STATEMENTS
company’s capital position is also sensitive to assumptions and experience relating to mortality and
persistency.
FINANCIAL
FINANCIAL
339
Notes to the
September 30, 2020
September 30, 2020
(iii) NCB Capital Markets Limited (NCBCM)

The company is regulated by the FSC and is subject to regulatory capital tests employed by the
regulator. Under the FSC regulations, the level of capital adequacy determines the maximum amount
of liabilities including repurchase agreements NCBCM is able to offer to clients. In addition to the
requirements of the FSC, NCBCM also engages in periodic internal testing which is reviewed by the
Risk Management Committee. Capital adequacy is managed at the operational level of NCBCM.
The regulatory capital of the company is divided into two tiers:

(i) Tier 1 capital: share capital, retained earnings and reserves created from appropriations of retained
earnings.
(ii) Tier 2 capital: qualifying subordinated debt or loan capital, qualifying capital reserves and
STATEMENTS
unrealised gains derived from the fair valuation of equity instruments classified as FVOCI.
STATEMENTS
The FSC requires that the company maintains a capital base comprising at least 50% of Tier 1 capital.
FINANCIAL
FINANCIAL
In addition, the FSC employs certain ratios to test capital adequacy and solvency. The results of these
ratios are included in a mandatory quarterly report submitted to the FSC. Two of the critical early warning
ratios relating to the test for capital adequacy are ‘Capital over Total Assets’ and the ‘Capital Base over
THE
THE
Risk Weighted Assets (RWA)’.
TOTO
- NOTES
- NOTES
There was no change in relation to how the company manages its capital during the financial year.
STATEMENTS
STATEMENTS
NCBCM met all the FSC regulatory capital requirements as at September 30, 2020.
(iv) Clarien Bank Limited
FINANCIAL
FINANCIAL
Capital is held to provide a cushion for unexpected losses. The Board sets the internal level of capital
with the aim of ensuring minimum regulatory capital levels are always exceeded whilst allowing for
growth in the business.
Basel III superseded Basel II and took effect on January 1, 2015 with transitional arrangements until full
implementation in 2020. The three pillar framework of Basel II is unchanged but there have been
changes to the detailed requirements within each pillar. Pillar 3 has more detailed disclosure
requirements and will adopt generic templates over the course of the transition to allow improved
comparability and transparency between institutions covered by Basel accords.
AC C EL ER ATE 340
340
Notes to the
September 30, 2020
September 30, 2020
(iv) Clarien Bank Limited (continued)

The key elements of Basel III changes to capital requirements are as follows:
• Changes to the definition of capital and the introduction of common equity Tier 1 (CET1). Over
the transition period there will be changes and additions to capital deductions from CET1 and Tier
2 capital, including the FVOCI reserve.
• Higher thresholds for all forms of capital will be required with an increased focus on CET1. A
capital conservation buffer of 2.5% will be introduced and phased in over the implementation
period. Additionally, a capital surcharge for Domestic Systemically Important Banks ranging
between 0.5% and 3.0% for all Bermuda Banks has also been implemented.
STATEMENTS
STATEMENTS
• Introduction of a non-risk based Leverage Ratio, being a measure of Tier 1 capital held against
total assets, including certain off-statement of financial position financial commitments.
FINANCIAL
FINANCIAL
Clarien has complied with all externally imposed minimum capital requirements throughout the current
year.
THETHE
TOTO
The new Basel rules also address areas of liquidity. The authority has adopted a Liquidity Coverage
- NOTES
Ratio (‘LCR’) with phased-in implementation consistent with that published by the Basel Committee.
- NOTES
The LCR aims to ensure Banks have sufficient stock of unencumbered highly liquid assets to survive a
STATEMENTS
high liquidity stressed scenario lasting 30 days.

STATEMENTS
The Bank reports its regulatory capital position to the Bermuda Monetary Authority (BMA) on a
consolidated legal entity basis each calendar quarter.
FINANCIAL
FINANCIAL
341
Notes to the
September 30, 2020
September 30, 2020
(v) Guardian Holdings Limited

In each country in which the Group operates, the local insurance regulator indicates the required
minimum amount and type of capital that must be held by each of the subsidiaries in addition to their
insurance liabilities. The Group is also subject to insurance solvency regulations in all the territories in
which it issues insurance and investment contracts. The minimum required capital must be maintained
at all times throughout the year. The Group monitors these requirements throughout the year to ensure
compliance. The Group has complied with these minimum capital requirements.
The Trinidadian trust services subsidiary holds a license under the Financial Institutions Act 2008 and
the Securities Industries Act 2012. Under the Financial Institutions Act, the subsidiary is required to
have a minimum paid up share capital of $15 million and to transfer a minimum of 10% of its profit after
STATEMENTS
tax to a Statutory Reserve Fund until the balance in the Fund is not less than the paid up capital of the
STATEMENTS
subsidiary as well as the subsidiary's qualifying capital shall be no less than 8% of its risk adjusted
assets. Under the Securities Industries Act 2012, the subsidiary is required to have minimum capital of
$6 million, of which at least $3 million shall be regulatory capital. The subsidiary has complied with these
FINANCIAL
FINANCIAL
requirements.
The Trinidadian asset management subsidiary holds a license under the Securities Industries Act 2012,
THE
THE
and as such, the subsidiary is required to have a minimum capital of $6 million, of which at least $3
TOTO
- NOTES
million shall be regulatory capital. The subsidiary has complied with this requirement.
STATEMENTS
FINANCIAL
FINANCIAL - NOTES
STATEMENTS
AC C EL ER ATE 342
342
Notes to the
September 30, 2020
September 30, 2020
51. Fair Values of Financial Instruments
The Group measures fair values using the following fair value hierarchy which reflects the significance of the inputs
used in making the measurements:
• Level 1 – inputs that are quoted market prices (unadjusted) in active markets for identical instruments.
• Level 2 – inputs other than quoted market prices included within level 1 that are observable, either directly (i.e.,
as prices) or indirectly (i.e., derived from prices).
• Level 3 – inputs that are unobservable.
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be
received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the
measurement date.
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the
STATEMENTS
statement of financial position. A market is regarded as active if quoted prices are readily and regularly available
STATEMENTS
from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for
financial assets is the current bid price. These instruments are grouped in Level 1 and comprise most equity
FINANCIAL
FINANCIAL
securities that are quoted on the Jamaica Stock Exchange.

THETHE
The fair value of financial instruments not traded in an active market is determined by using valuation techniques.
TOTO
These valuation techniques maximise the use of observable market data where it is available and rely as little as
- NOTES
possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the
- NOTES
instrument is included in Level 2. This category includes government bonds, certificates of deposit, commercial paper
STATEMENTS
and most liquid corporate bonds. Indicative prices or yields of these instruments are obtained from regular, publicly
STATEMENTS
available quotes by reputable pricing services, dealers and brokers, such as Bloomberg and Oppenheimer. The
Group’s derivatives are also included in Level 2. The embedded put option is valued using a discounted cash flow
model representing the difference between the present values of future cash flows with and without exercise of the
FINANCIAL
FINANCIAL
put option using observable market yields for government bonds of similar tenure. Equity-linked options are valued
using standard option pricing models using observable market data from Bloomberg.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Unquoted equities are carried at cost as the fair value cannot be reliably determined. These securities are classified
at level 3.
343
Notes to the
September 30, 2020
September 30, 2020
51. Fair Values of Financial Instruments (Continued)
The following tables provide an analysis of financial instruments held as at the date of the statement of financial
position that, subsequent to initial recognition, are measured at fair value. The financial instruments are classified in
the fair value hierarchy into which the fair value measurement is categorised:
The Group
Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
Financial assets
Investment securities classified as FVOCI
Government of Jamaica debt securities - 272,393,802 2,414,221 274,808,023
Other Government Securities 9,849,223 36,521,799 2,206,283 48,577,305
STATEMENTS
STATEMENTS
Corporate Debt Securities 4,653,910 47,132,535 66,212,932 117,999,377
14,503,133 356,048,136 70,833,436 441,384,705
FINANCIAL
Investment securities at fair value through profit or
FINANCIAL
loss
Government of Jamaica debt securities - 17,042,357 - 17,042,357
THE
THE
Government of Jamaica guaranteed corporate
TOTO
- - - -
bonds
- NOTES
- NOTES
Other Government Securities 11,632,631 67,582,769 - 79,215,400
STATEMENTS
STATEMENTS
Quoted & Unquoted equity securities 61,330,073 3,932,621 5,617,726 70,880,421
Other securities 235,708 1,181,881 164,587 1,582,176
FINANCIAL
76,409,338 105,522,765 10,946,347 192,878,450
FINANCIAL
Derivative financial instruments - 653,735 - 653,735
90,912,471 462,224,636 81,779,783 634,916,890
Financial liabilities
Derivative financial instruments
Liabilities under annuity and insurance contracts - - 405,014,541 405,014,541
- - 405,014,541 405,014,541
AC C EL ER ATE 344
344
Notes to the
September 30, 2020
September 30, 2020

Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
Financial assets
Investment securities classified as FVOCI
Government of Jamaica debt securities - 215,038,729 1,938,660 216,977,389
Other Government Securities 5,447,804 40,633,915 1,998,243 48,079,962
10,831,153 280,682,529 88,682,580 380,196,262
Investment securities at fair value through profit or
loss
Government of Jamaica guaranteed corporate
- 18,086,395 - 18,086,395
STATEMENTS
bonds
STATEMENTS
Other Government Securities 9,757,657 54,503,445 - 64,261,102

Quoted & Unquoted equity securities 56,035,269 1,328,997 4,283,305 61,647,571
FINANCIAL
FINANCIAL
Other securities 245,084 351,284 149,707 746,075

69,595,037 90,074,241 9,445,793 169,115,071
THETHE

TOTO
80,426,190 370,996,049 98,128,374 549,550,612

- NOTES
Financial liabilities
- NOTES

STATEMENTS
Liabilities under annuity and insurance contracts - - 394,615,307 394,615,307

STATEMENTS
- 239,279 394,615,307 394,854,586

FINANCIAL
The movement in the Group’s financial assets classified as Level 3 during the year is as follows:
FINANCIAL
The Group
2020 2019
$'000 $'000
At start of year 98,128,374 3,067,916
On acquisition of GHL - 3,265,687
Transfer between levels based on adoption of IFRS 9 1,815,795 59,709,796
Acquisitions 39,226,448 35,728,198
Disposals (56,476,747) (4,786,108)
Fair value gains (914,087) 1,137,885
At end of year 81,779,783 98,128,374
The movement in liabilities under annuity and insurance contracts is disclosed in Note 39.
345
Notes to the
September 30, 2020
September 30, 2020
The following table summarises the quantitative information about the significant unobservable inputs used in
Level 3 fair value measurements.
2020
Change in
Unobservable Range of Change in
Description fair value
input input basis points
$’000
JMD -100 and
Other corporate bonds Risk premium 2,216,350
USD -50
JMD +100 and
(2,069,519)
USD +50
STATEMENTS
STATEMENTS
2019 - Restated
Change in
FINANCIAL
Unobservable Range of Change in
FINANCIAL
Description fair value
input input basis points
$’000
THE
JMD -100 and
THE
Other corporate bonds Risk premium 3,597,972
TOTO
USD -50
- NOTES
JMD +100 and
- NOTES
(2,887,203)
USD +50
STATEMENTS
STATEMENTS
The Group’s level 3 unquoted equity securities would decrease in value by $129,795,000 should there be a 12.5%
decrease in value and increase by $72,685,000 should there be a 7% increase in value.
FINANCIAL
(2019 - $162,116,000) assuming a 15% decrease.
FINANCIAL
The carrying value (excluding accrued interest) (Note 23) and fair value of investment securities classified as
amortised cost are as follows:
The Group
Carrying Fair
Value Value
$’000 $’000
At September 30, 2020 213,084,577 224,271,173
At September 30, 2019 202,449,673 195,815,100
Similar to debt securities classified as FVOCI the above fair value measurements fall within Level 2 of the fair value
hierarchy as indicative prices or yields of these instruments are obtained from regular, publicly available quotes by
reputable pricing services, dealers and brokers, such as Bloomberg and Oppenheimer.
AC C EL ER ATE 346
346
Notes to the
September 30, 2020
September 30, 2020

The fair values for all other financial instruments approximate their carrying values and also fall within Level 2 based
on the following:
• The fair value of liquid assets and other assets maturing within one year (such as cash and balances at Central
Banks and amounts due from banks) is assumed to approximate their carrying amount. This assumption is
applied to liquid assets and the short-term elements of all other financial assets and financial liabilities;
• The fair value of demand deposits and savings accounts with no specific maturity is assumed to be the amount
payable on demand at the date of the statement of financial position;
• The fair value of variable rate loans is assumed to approximate their carrying amounts and management does
not believe that, after deduction of provision for credit losses, there is any significant difference between the fair
value of fixed rate loans and their carrying values as interest rates approximate current market rates offered on
similar loans.
52. Fiduciary Activities
STATEMENTS
STATEMENTS
The Group provides custody, trustee, corporate administration, investment management and advisory services to
third parties which involve the Group making allocation and purchase and sale decisions in relation to a wide range
FINANCIAL
of financial instruments. Those assets that are held in a fiduciary capacity are not included in these financial
FINANCIAL
statements. At September 30, 2020, the Group had financial assets under administration of approximately
$251,639,93,000 (2019 –$211,268,727,000).
THETHE
TOTO
53. Dividends
- NOTES
- NOTES
The following dividends were paid by NCB Financial Group Limited during the year:
STATEMENTS
- $0.90 per ordinary stock unit was paid in December 2019

STATEMENTS
- $1.00 per ordinary stock unit was paid in March 2020
The Board of Directors, at its meeting on November 12, 2020, did not declare an interim dividend.
FINANCIAL
FINANCIAL
54. Business Combination and Disposal of Subsidiary and Portfolio
GHL
In May 2019, the Group acquired an additional 31.99% stake in GHL. GHL is an integrated financial services
company with a focus on life, health, property, casualty insurance, pensions and asset management, based in
Trinidad & Tobago. The rationale for the transaction was to expand the Group regionally to drive continued growth
and shareholder value through a broader range of services and markets across the region.
Details of the purchase consideration, the net assets acquired and goodwill are as follows:
Purchase consideration $’000

Cash Paid 28,100,754
Fair value of initial 29.99% as at acquisition date 32,585,000
60,685,754
347
Notes to the
September 30, 2020
September 30, 2020
54. Business Combination and Disposal of Subsidiary (Continued)
The assets and liabilities recognised as a result of the acquisition are as follows:
Restated
Fair value
$’000
Due from other banks 44,746,117
Loans and advances 16,219,981
Investment in securities 432,227,411
Investment in associates 4,998,314
Investment properties 29,201,380
16,485,761
STATEMENTS
Intangible assets
STATEMENTS
Property, plant and equipment 11,916,628
Reinsurance asset 28,901,209
FINANCIAL
FINANCIAL
Other assets 6,220,461
Insurance contracts (355,304,187)
THE
THE
Other borrowed funds (50,063,697)
TOTO
- NOTES
Investment contract liabilities (39,395,293)
- NOTES
Third party interest in mutual funds (21,379,700)
STATEMENTS
STATEMENTS
Deferred taxation liabilities (13,333,207)
Segregated fund liabilities (16,549,531)
FINANCIAL
(29,123,078)
FINANCIAL
Other liabilities
Net identifiable assets acquired 65,768,569
Less: non-controlling interests (25,433,611)
Net Assets acquired 40,334,958
Cash consideration (60,685,754)
Goodwill (20,350,796)
(a) Summary of acquisition
(i) Accounting policy choice for non-controlling interests
The Group recognises non-controlling interests in an acquired entity either at fair value or at the non-
controlling interest’s proportionate share of the acquired entity’s net identifiable assets. This decision is
made on an acquisition-by-acquisition basis. For the non-controlling interest’s interests in GHL, the
Group elected to recognise the non-controlling interests at its proportionate share of the acquired net
identifiable assets. See Note 2 for the Group’s accounting policies for business combinations.
(ii) Revenue and profit contribution

The acquired business contributed revenues of $ 65,497,188,000 and net profit of $4,970,000,000 (after
consolidation adjustments) to the Group for the period from May 1, 2019 to September 30, 2019.
If the acquisition had occurred on October 1, 2018, consolidated pro-forma revenue and profit for the
year ended September 30, 2019 would have been $156,000,000,000 and $11,900,000,000, respectively.
AC C EL ER ATE 348
348
Notes to the
September 30, 2020
September 30, 2020
(b) Purchase consideration - cash outflow
Outflow of cash to acquire subsidiary, net of cash acquired $’000

Cash consideration 28,100,754
Less: Balance acquired
Cash (44,746,117)
Net inflow of cash - Investing activities (16,645,363)
(c) Acquisition-related costs
Acquisition-related costs of US$2.6 million are included in administrative expenses in the income statement
STATEMENTS
and in operating cash flows in the statement of cash flows.

STATEMENTS
(d) Provisionally determined values within the PPA

FINANCIAL
FINANCIAL
IFRS 3 allows one year from the date of acquisition (referred to as the measurement period) to finalise the
purchase accounting for business combinations and therefore also allows for provisionally determined
THETHE
amounts to be included in the financial statements. To the extent that the finalisation of the purchase
TOTO
accounting results in a change, these will be adjusted in the subsequent financial statements, as a prior
- NOTES
period adjustment to goodwill. Items within these financial statements for which there is provisional
- NOTES
determination of values include:

STATEMENTS
STATEMENTS
• Certain items of property, plant and equipment

• Investment in associated company
• Insurance contracts
FINANCIAL
FINANCIAL
• Other borrowed funds

• Allocation of goodwill to CGUs
The PPA for the acquisition of GHL has been finalised during the year and has resulted in a restatement. See
note 61 for details.
349
Notes to the
September 30, 2020
September 30, 2020
Advantage General Insurance Company Limited
In the prior year, NCB Capital Markets Limited, a subsidiary of National Commercial Bank Jamaica Limited entered
into an agreement to dispose of its 100% stake in Advantage General Insurance Company Limited. The
transaction was finalised on September 30, 2019 for a consideration of US$50,500,000, approximately
JMD$6,800,000,000. Below is a summarised income statement and balance representing the net profit
contribution for the financial year and the net assets sold:
(a) Income statement

2019
$’000
Net underwriting income 4,885,418
STATEMENTS
Policyholders’ and annuitants’ benefit & reserves (3,023,301)
STATEMENTS
Net commission & other selling expenses (88,451)
FINANCIAL
Net results from insurance activities 1,773,666
FINANCIAL
Other income 686,541
THE
THE
TOTO
Total other operating income 2,460,207
- NOTES
- NOTES
Staff & operating expenses 1,667,865
STATEMENTS
STATEMENTS
Profit before taxation 792,342
Taxation (231,526)
FINANCIAL
Net profit 560,816
FINANCIAL
(b) Statement of financial position
2019
$’000
Cash & bank balances
Investment securities 186,227
Investment properties 8,345,735
Property, plant, equipment & intangible assets 734,797
Other assets 1,167,080
2,594,689
Total assets 13,028,528
Liabilities under annuity and insurance contracts 6,559,758

Other liabilities 2,336,587
Total liabilities 8,896,345
Net Assets 4,132,183
AC C EL ER ATE 350
350
Notes to the
September 30, 2020
September 30, 2020
Advantage General Insurance Company Limited (continued)
(c) Gain on Disposal

2019
$’000
Proceeds, net of transaction costs 6,651,806
Net assets 4,132,183

OCI gain recycled to income statement (581,126)
Unamortised intangibles and other consolidated adjustments 474,324
Adjusted carrying value 4,025,381
STATEMENTS
STATEMENTS
Gain on disposal 2,626,425
(d) Purchase consideration - cash inflow

FINANCIAL
FINANCIAL
2019
Inflow of cash to sell subsidiary, net of cash disposed $’000
THETHE
Cash consideration 6,651,806

TOTO
Less: Balance relieved

- NOTES
- NOTES
Cash (186,227)
STATEMENTS
Net Inflow of cash - Investing activities 6,465,579

STATEMENTS
NCB Insurance Company Limited

FINANCIAL
FINANCIAL
During the year, the NCB Insurance Company Limited, a wholly owned subsidiary of NCBJ entered in an
agreement with Guardian Life Insurance, a wholly owned subsidiary of GHL, which is a subsidiary of NCBFG,
to dispose of its insurance and annuity business. The transaction is deemed to be among common owners and
as such any gain or loss resulting from the transaction was eliminated. The identifiable assets and liabilities are
as follows:
Proceeds, net of transaction costs 4,866,582
Market value of investments transferred (35,075,794)

Policyholders’ liabilities and reserves 33,547,584
Other actuarial adjustments (3,225,455)
Gain on disposal 112,917
351
Notes to the
September 30, 2020
September 30, 2020
55. Non-Controlling Interest
The table below shows the summarised financial information for Clarien Group Limited that has non-controlling
interest:
Statement of financial position 2020 2019

$’000 $’000
Total assets 193,109,304 162,691,201
Total liabilities (172,847,464) (142,715,964)
Net assets 20,261,840 19,975,237
Non-controlling interest 10,110,658 9,967,643
STATEMENTS
STATEMENTS
Statement of comprehensive income
FINANCIAL
Revenue 10,752,482 11,135,614
FINANCIAL
Direct profit for the period 826,024 1,195,591
THE
Consolidation adjustments (581,377) (1,017,483)
THE
TOTO
41,514 746,617
- NOTES
Other comprehensive income
- NOTES
Total comprehensive income 286,161 924,725
STATEMENTS
STATEMENTS
Profit allocated to non-controlling interest 122,299 88,876
FINANCIAL
Other comprehensive income allocated to non-controlling interest 20,716 372,562
FINANCIAL
Accumulated non-controlling interest 143,015 461,438
AC C EL ER ATE 352
352
Notes to the
September 30, 2020
September 30, 2020
55. Non-Controlling Interest (Continued)
The table below shows the summarised financial information for Guardian Holdings Limited that has non-controlling
interest:
Restated
Statement of financial position 2020 2019
$’000 $’000
Total assets 680,119,732 662,042,554
Total liabilities (590,746,804) (582,671,915)
Net assets 89,372,928 79,370,639
STATEMENTS
33,979,587 26,312,796
STATEMENTS
Non-controlling interest
FINANCIAL
Statement of comprehensive income

FINANCIAL
Revenue 163,504,763 65,497,188

THETHE
TOTO
Direct profit for the period 15,445,269 5,399,702

- NOTES
- NOTES
Consolidation adjustments 5,591,774 (2,842,942)

STATEMENTS
Other comprehensive income (3,943) 269,365

STATEMENTS
Total comprehensive income 21,033,100 2,826,125

FINANCIAL
FINANCIAL
Profit allocated to non-controlling interest 7,670,735 1,206,575

Dividend paid - (415,705)
Other comprehensive income allocated to non-controlling interest (3,943) 88,226
Accumulated non-controlling interest 7,666,792 879,096
353
Notes to the
September 30, 2020
September 30, 2020
56. Reconciliation of Liabilities arising from Financial Activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and
non-cash. Financing activities represent bank and other loans, excluding bank overdrafts and amounts included
as cash and cash equivalents:
The Group
Other Obligation under
borrowed securitisation Lease
funds arrangements liabilities Total
Liabilities $’000 $’000 $’000 $’000
At 01 October 2018 65,558,639 58,992,666 - 124,551,305
Cash movements -
Drawdowns 47,136,182 - - 47,136,182
Repayment – principal (38,267,911) (8,798,148) - (47,066,059)
STATEMENTS
STATEMENTS
Non-cash movements -
On acquisition on subsidiary 50,063,697 - - 50,063,697
Amortisation of upfront fees (137,873) 157,227 - 19,354
FINANCIAL
FINANCIAL
Foreign exchange adjustments (520,975) (1,940,791) - (2,461,766)
Interest payable 1,121,342 (105,131) - 1,016,211
THE
THE
At 30 September 2019 124,953,101 48,305,823 173,258,924
TOTO
- NOTES
Adoption of IFRS 16 (558,866) - 4,212,208 3,653,342
- NOTES
At 1 October 2019 124,394,235 48,305,823 4,212,208 173,258,924
STATEMENTS
Cash movements -
STATEMENTS
Drawdowns 24,192,548 35,392,925 1,724,573 61,310,046
Repayment – principal (26,988,658) (12,077,688) (1,346,282) (40,412,628)
FINANCIAL
FINANCIAL
Amortisation of upfront fees 118,340 (405,327) - (286,987)
Foreign exchange adjustments 3,608,341 (42,883) 7,495 3,572,953
Interest payable (258,470) (88,893) - (347,364)
At 30 September 2020 125,066,336 71,083,957 4,597,994 200,748,286
AC C EL ER ATE 354
354
Notes to the
September 30, 2020
September 30, 2020
56. Reconciliation of Liabilities arising from Financial Activities (Continued)
The Company
Other borrowed
funds Lease liabilities Total
Liabilities $’000 $’000 $’000
At 01 October 2018 60,149,078 - 60,149,078

Cash movements -
Drawdowns 52,971,268 - 52,971,268
Repayment (37,020,669) - (37,020,669)
STATEMENTS
Foreign exchange adjustments 48,182 - 48,182

STATEMENTS
Amortisation of upfront fees (164,404) - (164,404)

Interest payable 244,015 244,015
FINANCIAL
At 01 October 2019 76,227,470 - 76,227,470

FINANCIAL
Cash movements -
Drawdowns 2,000,007 127,593 2,000,007
THETHE
Repayment (5,500,500) (29,231) (5,500,000)

TOTO
- NOTES
- NOTES
Foreign exchange adjustments 2,938,515 - 2,938,515

STATEMENTS
Amortisation of upfront fees (102,236) - (102,236)

STATEMENTS
Interest payable (1,206) - (1,206)

At 30 September 2020 75,562,050 98,361 75,562,050
FINANCIAL
FINANCIAL
355
Notes to the
September 30, 2020
September 30, 2020
57. Leases
The statement of financial position shows the following amounts relating to leases:
2020 2019
$’000 $’000
Right-of-use assets
Buildings 3,962,194 244,147
Motor vehicles 453,824 391,701
Equipment 127,660 180,967
4,543,678 816,815
Lease liabilities
Current 1,341,021 292,368
Non-current 3,256,973 266,498
STATEMENTS
4,597,994 558,866
STATEMENTS
In the previous year, the Group only disclosed its operating lease commitments in relation to leases that were
FINANCIAL
classified as ‘operating leases’ under IAS 17 Leases. Please refer to Note 50 (b).
FINANCIAL
Rights-of-use assets
THE
THE
TOTO
The Group adopted IFRS 16 as at 1 October 2019:
- NOTES
- NOTES
(i) Amounts recognised in the balance sheet
STATEMENTS
STATEMENTS
a) The statement of financial position shows the following amounts relating to leases:
FINANCIAL
30 September 1 October
FINANCIAL
2020 2019
Right-of-use assets $’000 $’000
Buildings 3,962,194 244,147
Motor vehicles 453,824 391,701
Equipment 127,660 180,967
4,543,678 816,815
b) As at 30 September 2019, leasehold Improvements and furniture, fittings and equipment where the Group
is a lessee under a finance lease are as follows:
Leasehold Motor
Improvements Equipment Vehicles
$’000 $’000 $’000
Cost 798,906 217,160 936,588
Accumulated Depreciation (554,759) (36,193) (544,887)
Net book values 244,147 180,967 391,701
AC C EL ER ATE 356
356
Notes to the
September 30, 2020
September 30, 2020
57. Leases (Continued)
As at October 1, 2019 leased assets previously classified as operating leases are presented as in the property,
plant and equipment disclosure note.
Recognition of the right-of-use assets upon the adoption of IFRS 16 is $3,653,342,000. During the financial year
additions through new leases and acquisitions amounted to $1,724,573,000.
(ii) Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
2020
Depreciation charge of right-of-use assets $’000
Buildings 764,163
STATEMENTS
STATEMENTS
Equipment 56,752
Motor Vehicles 246,591
1,067,506
FINANCIAL
FINANCIAL
Amounts recognised in the statement of comprehensive income relating to leases:

THETHE
TOTO
2020 2019
- NOTES
$’000 $’000
- NOTES
Depreciation charge of right-of-use assets 1,067,506 334,801

STATEMENTS
Interest expense on lease liabilities

STATEMENTS
344,221 105,011
Total expenses related to leases 1,411,727 439,812
FINANCIAL
FINANCIAL
Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability
- any lease payments made at the commencement date less any lease incentives received
Right-of-use assets are generally depreciated over the lease term on a straight line basis. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying
asset’s useful life.
In the previous year, the Group only recognised lease assets and lease liabilities in relation to leases that were
classified as ‘finance leases’ under IAS 17 Leases. The assets were presented in property, plant and equipment
and the liabilities as part of the Group’s borrowings.
357
Notes to the
September 30, 2020
September 30, 2020
The Group’s leasing activities
The Group leases various buildings to facilitate: execution of banking services at branches and ABMs, general
business operations and housing for employees. Rental contracts are typically made for fixed periods of 1 to 10
years. Leases are negotiated on an individual basis and contain a wide range of different terms and conditions
(including termination and renewal rights). Extension and termination options are used to maximise operational
flexibility in terms of managing the assets used in the Group’s operations. The extension and termination options
held are exercisable by both the Group and the respective lessor.
Contracts may contain both lease and non-lease components. Where these exist, the Group allocates the
consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.
However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-
lease components and instead accounts for these as a single lease component. The lease agreements do not
STATEMENTS
impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased
STATEMENTS
assets may not be used as security for borrowing purposes. Until the 2019 financial year, leases of property,
plant and equipment were classified as operating leases. From 1 October 2019, leases are recognised as a right-
of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.
FINANCIAL
FINANCIAL
To determine the incremental borrowing rate, the Group:
THE
• where possible, uses recent third-party financing received by the individual lessee as a starting point,
THE
adjusted to reflect changes in financing conditions since third party financing was received;
TOTO
- NOTES
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by
- NOTES
the Group, which do not have recent third party financing; and,
STATEMENTS
• makes adjustments specific to the lease, e.g. term, country, currency and security.
STATEMENTS
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability
FINANCIAL
FINANCIAL
for each period.
Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a
straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. While the Group revalues its land and buildings that are
presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by
the Group.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are
recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term
of 12 months or less. Low value assets comprise IT equipment and small items of office furniture.
AC C EL ER ATE 358
358
Notes to the
September 30, 2020
September 30, 2020
Extension and termination options are included in a number of property and equipment leases across the Group.
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after
termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not
terminated). For leases of land and buildings, management has included various extension options in the lease
liability, as relocating would from existing locations would be onerous.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at
the commencement date;
• amounts expected to be payable by the Group under residual value guarantees;
STATEMENTS
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and,
STATEMENTS
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged
FINANCIAL
FINANCIAL
to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a
significant change in circumstances occurs, which affects this assessment, and that is within the control of the
THETHE
lessee. During the current financial year, the financial effect of revising lease terms to reflect the effect of exercising
TOTO
extension and termination options was an increase in recognised lease liabilities and right-of-use assets of
- NOTES
$684,249,000.
- NOTES
STATEMENTS
58. Litigation and Contingent Liabilities

STATEMENTS
The Group is subject to various claims, disputes and legal proceedings, as part of the normal course of business.
Provision is made for such matters when, in the opinion of management and its professional advisors, it is probable
FINANCIAL
FINANCIAL
that a payment will be made by the Group, and the amount can be reasonably estimated.
In respect of claims asserted against the Group for which, according to the principles outlined above, no provision
has been made, management is of the opinion that such claims are without merit and can be successfully defended.
Significant matters are as follows, all relating to National Commercial Bank Jamaica Limited:
(a) Suit has been filed by the NCB Staff Association against the Bank seeking various declarations regarding the
Bank’s profit sharing scheme, in particular as it relates to the financial year ended September 30, 2002. The
Association has not quantified the claim. In 2017, the Supreme Court decided in favor of the NCB Staff
Association. The Bank filed an appeal against the judgment. The appeal was heard for 3 days in June 2020 at
the end of which the Court of Appeal reserved its judgment. In July, 2020 the Court of Appeal handed down its
Judgment dismissing the Bank’s Appeal and affirming the decision of the Supreme Court. The Bank
subsequently filed a Motion for Conditional Leave to have an appeal heard by the Judicial Committee of the
Privy Council. Provision for the claim has been made in the financial statements.
359
Notes to the
September 30, 2020
September 30, 2020
58. Litigation and Contingent Liabilities (Continued)
(b) Suit has been filed by a customer against the Bank for breach of contract, breach of trust and negligence and
damages. The claim for damages includes a sum equivalent to the profit of the business foregone as a result
of an inability to access a loan approved by the Bank and the cost of interim financing. No provision was made
in these financial statements for this claim as the Bank’s attorneys were of the view that the suit against the
Bank was unlikely to succeed. The Court subsequently ordered that the customer’s claim be struck out. The
customer has appealed that decision.
(c) Suit has been filed by a customer against the Bank for damages suffered as a result of the Bank’s alleged
negligence in relation to the sale of property. The proper value of the property, which had been owned by the
customer, is in issue, along with the amount properly to be applied to the customer’s loan balance. Based on
the advice of the Bank’s attorneys, no provision has been made in the financial statements in respect of this
claim.
STATEMENTS
(d) Suit has been filed by a customer against the Bank for unlawful, wrongful and/or improper use of power in the
STATEMENTS
appointment of a Receiver and manager of the customer’s business property and assets. Damages, interest
and costs have been claimed against the Bank. No provision has been made in the financial statements for this
claim as the Bank’s attorneys are of the opinion that the claim is unlikely to succeed.
FINANCIAL
FINANCIAL
(e) Suit was filed by a claimant seeking specific performance, damages for breach of contract, interest and costs.
At the time of trial, the claim against the Bank was quantified by the claimant at approximately $31.4 billion plus
THE
THE
interest and costs. The Supreme Court issued judgment in the Bank’s favor, with the Court ordering a company
TOTO
- NOTES
(placed by the Bank into receivership) to pay the claimant $5 million plus interest. The claimant has appealed
- NOTES
and the defendants (including the Bank) have cross-appealed that portion of the judgment in which the company
in receivership was ordered to pay the claimant $5 million plus interest. However, in the light of a recent decision
STATEMENTS
STATEMENTS
of the Court of Appeal, the claimant has applied to vacate the judgment of the Supreme Court as the Judge
who delivered the judgment did so after he retired from the Supreme Court. Having heard the claimant’s
application, the Court of Appeal ordered that the matter be referred to the Supreme Court where a re-trial has
FINANCIAL
been scheduled. No provision has been made for this claim as the Bank’s attorneys are of the view that the
FINANCIAL
suit against the Bank is unlikely to succeed.
A number of other suits have been filed by customers of the Group. In some instances, counter claims have
been filed by the Group. Provision has been made in the financial statements for certain of these claims. No
provision has been made where the Group’s attorneys are of the view that the Group has a good defence
against these claims.
AC C EL ER ATE 360
360
Notes to the
September 30, 2020
September 30, 2020
59. Changes in Accounting Policies
(a) Impact on financial statements
This note explains the impact of the adoption of IFRS 16 Leases on the Group’s financial statements.
As indicated in Note 2, the Group has adopted IFRS 16 Leases retrospectively from 1 October 2019 but has not
restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the
standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised
in the opening balance sheet on October 1, 2019. The new accounting policies are disclosed in Note 57.
On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been
classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the
present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of
October 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on
STATEMENTS
October 1, 2019 was 9.75%.

STATEMENTS
(a) Practical expedients applied

FINANCIAL
FINANCIAL
In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the
standard:
THETHE
• applying a single discount rate to a portfolio of leases with reasonably similar characteristics;
TOTO
• relying on previous assessments on whether leases are onerous as an alternative to performing an

- NOTES
• impairment review;
- NOTES
• – there were no onerous contracts as at October 1, 2019;

STATEMENTS
• accounting for operating leases with a remaining lease term of less than 12 months as at January 1,
STATEMENTS
2019
• as short-term leases;
• excluding initial direct costs for the measurement of the right-of-use asset at the date of initial
FINANCIAL
FINANCIAL
application; and,
• using hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial
application. Instead, for contracts entered into before the transition date the Group relied on its assessment
made applying IAS 17 and Interpretation 4 Determining whether an Arrangement contains a Lease.
361
Notes to the
September 30, 2020
September 30, 2020
59. Changes in Accounting Policies (Continued)
(b) Measurement of lease liabilities
The lease liabilities as at October 1, 2019 can be reconciled to the operating lease commitments as of
September 30, 2019, as follows:
$’000
Operating lease commitments disclosed as at September 30, 2019 3,292,823
Discounted using the lessee’s incremental borrowing rate as at
September 30, 2019 (568,332)
Discounted operating lease commitments as at October 1, 2019 2,724,491
STATEMENTS
(Less): short-term leases not recognised as a liability
STATEMENTS
(213,699)
(Less): low-value leases not recognised as a liability -
FINANCIAL
Contract reassessed as operating lease 41,877
FINANCIAL
Add: adjustments as a result of a different treatments of extension and
termination options
THE
1,082,032
THE
TOTO
Lease liabilities as at October 1, 2019 3,634,701
- NOTES
- NOTES
(c) Measurement of right-of-use assets
STATEMENTS
STATEMENTS
The associated right-of-use assets for property leases were measured on a retrospective basis as if the new
rules had always been applied. Other right-of use assets were measured at the amount equal to the lease
FINANCIAL
liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised
FINANCIAL
in the balance sheet as at September 30, 2019.
(d) Adjustments recognised in the balance sheet on October 1, 2019
The change in accounting policy affected the following items in the balance sheet on October 1, 2019:
• right-of-use assets – increase by $3,634,699,000
• lease liabilities – increase by $3,634,699,000
(e) The Income statement impact
For the year 2020 increased charges of $41,328,000 was recorded in the income statement.
AC C EL ER ATE 362
362
Notes to the
September 30, 2020
September 30, 2020
60. Offsetting Financial Assets and Financial Liabilities
The following financial assets are subject to offsetting, enforceable master netting arrangements and similar
agreements.
The Group
2020
Related amounts not set off in the statement of financial position
Gross Net amounts
amounts of financial
Gross set off assets
amounts of on the presented on Impact of Financial
financial balance the balance master netting Cash instruments Net
assets sheet sheet agreements collateral collateral amounts
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets
Cash resources 258,411,791 - 258,411,791 - (3,707,087) (5,473,992) 249,230,712

STATEMENTS
Financial
STATEMENTS
investments 853,085,972 - 853,085,972 (210,914,030) - (185,369,195) 456,802,747

1,111,497,763 - 1,111,497,763 (210,914,030) (3,707,087) (190,843,187) 706,033,459
FINANCIAL
FINANCIAL
2019
Assets
Cash resources 209,570,465 - 209,570,465 - (3,446,427) (5,677,890) 200,446,148
THETHE
Financial
TOTO
investments 756,496,006 - 756,496,006 (201,039,607) - (172,270,779) 386,185,620

- NOTES
- NOTES
966,066,471 - 966,066,471 (201,039,607) (3,446,427) (177,948,669) 583,631,768

FINANCIAL
STATEMENTS
363
Notes to the
September 30, 2020
September 30, 2020
60. Offsetting Financial Assets and Financial Liabilities (Continued)
The following financial assets are subject to offsetting, enforceable master netting arrangements and similar
agreements.
The Group
2020
Related amounts not set off in the statement of financial position
Net amounts
Gross of financial
amounts assets
Gross set off presented Impact of
amounts of on the on the master Financial
financial balance balance netting Cash instruments
assets sheet sheet agreements collateral collateral Net amounts
STATEMENTS
STATEMENTS
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Liabilities
-
FINANCIAL
Repurchase (84,943) -
FINANCIAL
agreements 211,436,379 211,436,379 (210,914,030) 437,406
Obligations
THE
under
THE
securitisation
TOTO
- (3,622,144) -
- NOTES
agreements 71,083,957 71,083,957 - 67,461,813
- NOTES
-
282,520,336 282,520,336 (210,914,030) (3,707,087) - 67,899,219
STATEMENTS
STATEMENTS
2019
FINANCIAL
FINANCIAL
Liabilities
Repurchase
agreements 174,619,976 - 174,619,976 (201,039,607) - - (26,419,631)
Obligations
under
securitisation
agreements 48,305,823 - 48,305,823 - (3,446,427) - 44,859,396
222,925,799 - 222,925,799 (201,039,607) (3,446,427) - 18,439,765
AC C EL ER ATE 364
364
Notes to the
September 30, 2020
September 30, 2020
61. Restatements and reclassifications
In 2019, the Group acquired controlling interest in GHL (Note 54) and as allowed under IFRS 3, the PPA were
provisionally determined. The PPA has been finalised during the current year and resulted in changes (Note 54) in
the fair values of certain assets and liabilities which resulted in the restatement as follows.
The Group
As previously
reported Restatement Reclassification Restated
$’000 $’000 $’000 $'000

ASSETS
Cash in hand and balances at Central - -
62,535,389 62,535,389
Banks
- -
STATEMENTS
Due from banks 141,357,186 141,357,186

STATEMENTS
Derivative financial instruments 239,279 - - 239,279

Reverse repurchase agreements 7,837,898 - - 7,837,898
FINANCIAL
FINANCIAL
Loans and advances, net of provision - -

423,102,600 423,102,600
for credit losses
THETHE

TOTO
Pledged assets 384,904,688 - (5,916,412) 378,988,276

- NOTES
- NOTES
Investment in associates 5,271,465 273,986 - 5,545,451

STATEMENTS
Investment properties 28,155,110 - 3,230,106 31,385,216

STATEMENTS
Intangible assets 43,632,659 5,925,018 - 49,557,677

- 2,686,306
FINANCIAL
Property, plant and equipment 23,480,667 26,166,973

FINANCIAL
Properties for development and sale 2,368,042 - - 2,368,042

Reinsurance assets 33,779,448 - - 33,779,448
Deferred income tax assets 8,141,066 - - 8,141,066
Income tax recoverable 5,174,472 - - 5,174,472
Letters of credit and undertaking 2,051,519 - - 2,051,519
Other assets 51,883,490 - - 51,883,490
Total Assets 1,610,100,598 6,199,004 - 1,616,299,602
365
Notes to the
September 30, 2020
September 30, 2020
61. Restatements and reclassifications (Continued)
The Group
As previously
reported Restatement Reclassification Restated
$’000 $’000 $’000 $'000

LIABILITIES
Due to banks 22,776,255 - - 22,776,255
Customer deposits 504,678,536 - - 504,678,536
Repurchase agreements 174,619,976 - - 174,619,976
Obligations under 48,305,823 - - 48,305,823
securitisation arrangements
Derivative financial 239,279 - - 239,279
STATEMENTS
instruments
STATEMENTS
Other borrowed funds 124,953,101 - - 124,953,101
Deferred income tax liabilities 18,122,796 142,764 - 18,265,560
FINANCIAL
Third party interest in mutual 22,138,490 - - 22,138,490
FINANCIAL
funds
Segregated fund liabilities 16,549,531 - - 16,549,531
THE
THE
TOTO
Investment contract liabilities 39,257,656 - - 39,257,656
- NOTES
Liabilities under annuity and 385,395,889 9,219,418 - 394,615,307
- NOTES
insurance contracts
STATEMENTS
Post-employment benefit 9,400,738 - - 9,400,738
STATEMENTS
obligations
Letters of credit and 2,051,519 - - 2,051,519
undertaking
FINANCIAL
FINANCIAL
Other liabilities 54,577,213 - - 54,577,213
Total Liabilities 1,423,066,802 9,362,182 - 1,432,428,984
STOCKHOLDERS’ EQUITY
Share capital 153,827,330 - - 153,827,330
Treasury shares (10,756,253) - - (10,756,253)
Reserves from scheme of (147,034,858) - - (147,034,858)
arrangement
Fair value and capital reserves 13,158,946 - - 13,158,946
Loan loss reserve 2,947,624 - - 2,947,624
Banking reserve fund 6,625,209 - - 6,625,209
Retained earnings reserve 43,820,000 - - 43,820,000
Retained earnings 84,709,206 292,975 - 85,002,181
Equity attributable to 147,297,204 292,975 - 147,590,179
stockholders of the parent
Non-controlling interest 39,736,592 (3,456,153) - 36,280,439
Total stockholders’ equity 187,033,796 (3,163,178) - 183,870,618
Total stockholders’ equity
and liabilities 1,610,100,598 6,199,004 - 1,616,299,602
AC C EL ER ATE 366
366
Shareholdings
% 44,1
1-5 97
een SH
etw AR
in gb EH
OL
wn
DE
o
3%
RS
29
RS
717
DE
ow
it
.0
,17
OL
.8 Un
nin
7%
7,
EH
89
g<
18
HAR
40
2,5
1%
SHAREHOLDER
3U
10 S
,51
PROFILE
nits
464
of NCB Financial Group Limited

as at September 30, 2020
2,466,762,828 44,208
Total Units Total Shareholders
1,285 its
,072,836 Un
52.10%
1 SH nts
AREHOLD ccou
ER with five a
10 LARGEST SHAREHOLDERS
of NCB Financial Group Limited as at September 30, 2020
Name of Shareholder Units Percentage Ownership
AIC (Barbados) Limited 1,285,072,836 52.10%
Sagicor PIF Equity Fund 79,833,444 3.24%
Hon. Patrick Hylton, OJ, CD 68,080,555 2.76%
NCB Insurance Co. Ltd WT 109 62,989,156 2.55%
Harprop Limited 46,434,102 1.88%
AIC Global Holdings Inc. 45,449,690 1.84%
Dennis Cohen 36,550,749 1.48%
SJIML A/C 3119 35,498,981 1.44%
Ideal Portfolio Services Company Limited 33,339,577 1.35%
Guardian Life of the Caribbean 30,206,368 1.22%

INTEREST/OWNERSHIP OF INTEREST/OWNERSHIP OF STOCK UNITS

STOCK UNITS BY DIRECTORS BY EXECUTIVES/SENIOR MANAGERS
of NCB Financial Group Limited as at September 30, 2020 of NCB Financial Group Limited as at September 30, 2020
Connected Executives/Senior Connected

Directors 1.
Total Direct Total Direct
Parties Managers Parties
Robert Almeida 66,045,231 171,750 65,873,481 Dennis Cohen 1. 2. 175,377,207 36,550,749 138,826,458
Dennis Cohen 2. 175,377,207 36,550,749 138,826,458 Dave Garcia 175,027 175,027 0
Sandra Glasgow 2. 139,351,258 326,150 139,025,108 Hon. Patrick Hylton, OJ, CD 1. 133,954,036 68,080,555 65,873,481
Sanya Goffe 65,945,481 72,000 65,873,481 Misheca Seymour-Senior 7,195 7,195 0
Hon. Patrick Hylton, OJ, CD 133,954,036 68,080,555 65,873,481 Mukisa Wilson Ricketts 87,552 87,552 0
Adrian Lee-Chin 65,906,201 0 65,906,201 Allison Wynter 2. 73,281,214 191,237 73,089,977
Hon. Michael Lee-Chin, OJ 1,490,930,331 35,000 1,490,895,331
Thalia Lyn, OD 2. 139,243,304 398,084 138,845,220
Prof. Alvin Wint, CD 65,961,625 88,144 65,873,481
Dave Garcia
175,027 175,027 0
(Corporate Secretary)
INTEREST/OWNERSHIP OF STOCK UNITS BY OTHER

EXECUTIVES/SENIOR MANAGERS OF SUBSIDIARIES
of NCB Financial Group Limited as at September 30, 2020
Executives/Senior Connected Executives/Senior Connected

Total Direct Total Direct
Managers Parties Managers Parties
Gabrielle Banbury-Kelly 95,508 95,508 0 Nadeen Matthews Blair 92,305 92,305 0
Septimus Blake 211,144 211,144 0 Anne McMorris Cover 8,735 8,735 0
Brian Boothe 242,000 102,000 140,000 Claudette Rodriquez 99,355 99,355 0
Danielle Cameron Duncan 92,854 92,854 0 Malcolm Sadler 58,827 28,774 30,053
Euton Cummings 10 10 0 Ravi Tewari 0 0 0
Raymond Donaldson 0 0 0 Ian Truran 0 0 0
Steven Gooden 124,420 124,420 0 Simona Watkis 4,900 4,900 0
Howard Gordon 105,051 105,051 0 Tanya Watson Francis 156,323 156,323 0
Vernon James 0 0 0 Angus Young 93,000 93,000 0
Sheree Martin 6,713 6,713 0
1. Connected parties for all directors include shares of 65,873,481 held by subsidiaries of Guardian Holdings Limited (GHL).
2. Connected parties for Dennis Cohen, Sandra Glasgow, Thalia Lyn and Allison Wynter include shares of 72,949,977 held as trustees of the N.C.B. Staff Pension Fund.
AC C EL ER ATE 368
Corporate
Directory
NCB FINANCIAL GROUP LIMITED
32 Trafalgar Road www.myncb.com 876-929-9050

Kingston 10
Jamaica W.I.
Key Persons:
Hon Patrick Hylton, OJ. CD. President and Group Chief Executive Officer
Dennis Cohen Group Chief Financial Officer and Deputy Chief Executive Officer
Allison Wynter Group Chief Risk Officer
Dave Garcia Group General Counsel and Corporate Secretary
Mukisa Ricketts Group Chief Audit Executive
Misheca Seymour-Senior Group Chief Compliance Officer
NATIONAL COMMERCIAL BANK JAMAICA LIMITED

AND ITS SUBSIDIARIES
32 Trafalgar Road www.jncb.com 876-929-9050

Kingston 10 888-NCB-FIRST (622-3477)
Jamaica W.I.
Key Persons:
Septimus ‘Bob’ Blake Chief Executive Officer (CEO)
Malcolm Sadler Chief Financial Officer
Allison Wynter Head - Group Risk Management Division
Anne McMorris-Cover Head - Enterprise Operations Division
Brian Boothe Head - Corporate, Commercial and Consumer Banking Division
Claudette Rodriquez Head - Payment Services Division
Danielle Cameron-Duncan Head - Digital Channels
Dave Garcia Head - Group Legal & Compliance Division
Euton Cummings Head - Group HR and Facilities Division
Gabrielle Banbury-Kelly Head - Group Transformation Office
Mukisa Ricketts Head - Group Internal Audit Division
Nadeen Matthews Blair Head - Group Marketing, Communications, Analysis & Digitisation Division /CEO, N.C.B. Foundation
Ramon Lewis Head - Group Information & Technology Division
Tanya Watson-Francis Head - Treasury and Correspondent Banking Division
Steven Gooden Chief Executive Officer (CEO), NCB Capital Markets Limited
Desmond Johnson General Manager, NCB Insurance Agency & Fund Managers Limited

CLARIEN GROUP LIMITED
19 Reid Street www.clarienbank.com +1 441-296-6969

Hamilton
HM 11, Bermuda
Key Persons:
Ian Truran Chief Executive Officer
Bruce Jackson Chief Wealth Management Officer
Minish Parikh Chief Operating Officer
Rebecca Pitman Chief of Staff
Simon Van de Weg Chief Banking Officer
Vishram Sawant Chief Financial Officer
Michael DeCouto Chief Digital & Marketing Officer
Corey Reason Head of Compliance
Jared Siddle Head of Risk
GUARDIAN HOLDINGS LIMITED
1 Guardian Drive www.myguardiangroup.com 1-868-226-MYGG (6944)

Westmoorings
Trinidad and Tobago
Key Persons:
Ravi Tewari Group Chief Executive Officer
David Maraj Group Chief Financial Officer
Alan Sadler Group Vice President, Insurance Operations
Sasha Ali Group Head, Internal Audit
Brent Ford Group Chief Investment Officer/Group President, Asset Management
Karen Kelshall Lee Group Head, Compliance
Paul Traboulay Group Chief Risk Officer
Richard Avey Group General Counsel/Corporate Secretary
Anand Pascal President, Guardian Life of the Caribbean Limited
Dean Romany President, Guardian General Insurance Limited

Diego Frankel President, Fatum
Eric Hosin President, Guardian Life Limited
Karen Bhoorasingh President, Guardian General Insurance Jamaica Limited
CONTACT INFORMATION
Investor Relations*: Registrar Services**:

Jacqueline De Lisser Jamaica Central Securities
Head – Group Investor Relations & * Information on the Company
Depository Ltd.
Financial Advisory Unit 40 Harbour Street, Kingston ** Shareholders queries
[email protected] 876-967-3271
AC C EL ER ATE 370
Glossary -
Abbreviations
* The Compounded Annual Growth Rate (CAGR) is a measure of
growth over multiple time periods.
CURRENCIES AND UNITS:

G O
GAM - Guardian Asset Management ODPEM - Office of Disaster Preparedness
GAMIS - Guardian Asset Management and and Emergency Management
B – Billion
Investment Services Ltd
BMD - Bermudan Dollar
GGIL - Guardian General Insurance Ltd P
BBD - Barbados Dollar
GGIJL - Guardian General Insurance PWC – PricewaterhouseCoopers
Bn – Billion
Jamaica Ltd. PSOJ – Private Sector Organisation of
J$ – Jamaican Dollar
GHL – Guardian Holdings Limited Jamaica
JMD – Jamaican Dollar
GLL - Guardian Life Limited
K – Thousand
GLOC - Guardian Life of the Caribbean S
M – Million
STATIN - The Statistical Institute of
Mn – Million
I Jamaica
NAF - Netherlands Antilles Guilder
IASB – International Accounting
Tn - Trillion
Standards Board T
TT$ – Trinidad and Tobago Dollars
ICAJ – Institute of Chartered Accountants TTSE – Trinidad and Tobago Stock
TTD – Trinidad and Tobago Dollars
of Jamaica Exchange
US$ – United States Dollars
IMF – International Monetary Fund TTSEC - Trinidad and Tobago Securities
USD – United States Dollar
and Exchange Commission
J
ENTITIES:
JCAA - Jamaica Civil Aviation Authority U
JSE - Jamaica Stock Exchange USAID - United States Agency for
International Development
A N
Alpart/JISCO - Alpart Alumina Partners/
NACD - National Association of Corporate TITLES:
Jiuquan Iron and Steel Company
Directors
NCB or NCB Group – NCBFG and its
B subsidiaries AGM – Assistant General Manager
BOJ – Bank of Jamaica
NCBCM – NCB Capital Markets Limited AVP - Assistant Vice President
NCBCMBL – NCB Capital Markets CAE - Chief Audit Executive
C (Barbados) Limited CEO – Chief Executive Officer
CariCRIS - Caribbean Information and
NCBFG – NCB Financial Group Limited CFO – Chief Financial Officer
Credit Ratings Services Limited
NCBGF – NCB Global Finance Limited CIO - Chief Information Officer
CBL - Clarien Bank Limited
NCBGH – NCB Global Holdings Limited SAGM – Senior Assistant General Manager
CBTT - Central Bank of Trinidad and
NCBIA - NCB Insurance Agency and Fund VP - Vice President
Tobago
Managers Limited (formerly NCBIC – NCB
CLICO - Colonial Life Insurance Company
Insurance Company Limited) OTHER ACRONYMS:
CSO - Central Statistical Office
NCBJ – National Commercial Bank
Jamaica Limited
F 2020 F - Forecasted for calendar year
FSC – Financial Services Commission
2020
2021 F - Forecasted for calendar year
2021

A G POS – Point of Sale

PY – Prior year
ABM – Automated Banking Machine GDP – Gross Domestic Product
AGM – Annual General Meeting GOJ – Government of Jamaica
AI – Artificial Intelligence GOB - Government of Barbados
Q
Q1 - Quarter 1
ATM – Automated Teller Machine GRC – Group Risk Committee
Q2 - Quarter 2
ALCO - Asset and Liability Committee GRMD – Group Risk Management Division
Q3 - Quarter 3
GPA - Grade Point Average
B Q4 - Quarter 4
BERT - Barbados Economic Recovery and H

Transformation HR – Human Resources
S
SME – Small and Medium Sized Enterprise
BPS – Basis Points
I S&P – Standard & Poor’s
C iABM – Intelligent Automated Banking

STEM - Science, Technology, Energy and
Mathematics
CAGR* – Compounded Annual Growth Machine
STP - Straight Through Processing
Rate IFRS – International Financial Reporting
CBD – Corporate Banking Division Standards
CCTV – Closed Circuit Television IPO – Initial Public Offering
T
T–Bill – Treasury Bill
CD account - Certificate of deposit ISA - International Standards on Auditing
TCBD – Treasury & Correspondent
CEC - Client Engagement Centre IT – Information Technology
Banking Division
CEMBI - Emerging Market Corporate Bond
Index J TEF - Tourism Enhancement Fund
T & T – Trinidad & Tobago
CHASE - Culture, Health, Arts, Sports and JAMAN - Jamaican global bonds
Education JEI – Jamaica Education Initiative
CLC - Corporate Learning Campus
U
CPI – Consumer Price Index K UK – United Kingdom
US – United States
CSR – Corporate Social Responsibility KPI - Key Performance Indicator
UI/UX Design - User Interface/User
KYC - Know Your Customer
D Experience
DPR – Diversified Payments Rights L UWI – University of the West Indies
DTI - Deposit Taking Institution LED – light-emitting diode

V
E M VAT - Value Added Tax
ECLAC - Economic Commission for Latin MD&A – Management Discussion &

America and the Caribbean Analysis
EGC – Economic Growth Council mPOS – Mobile Point of Sale
EMBI - Emerging Market Bond Index MSME - Micro Small and Medium
EMV – Europay, MasterCard, and Visa Enterprises
EPS – Earnings per stock unit
P
F PCC - Pre-Authorised Credit Card Payment
FX – Foreign Exchange PCDF - PetroCaribe Development Fund
FY - Financial Year PCI – Payment Card Industry
FY - Fiscal Year POCI – Purchased or originated credit-
Finacle - A core banking system that impaired
provides digital banking functionalities for
NCBJ.
AC C EL ER ATE 372
Notes

Annual General Postage
Meeting Form Stamp
of Proxy
I/We
of
being a Member/Members of the abovenamed Company, hereby appoint
of or failing him/her
of
as my/our Proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be
held at The Atrium, 32 Trafalgar Road, Kingston 10, in the parish of Saint Andrew, Jamaica on February 5,
2021 at 3:00 p.m. and at any adjournment thereof.
Please indicate
by inserting a cross RESOLUTION FOR AGAINST RESOLUTION FOR AGAINST
in the appropriate
square how you
wish your votes 1 4 (a)
to be cast. Unless
otherwise instructed, 2 4 (b)
the Proxy will vote or
abstain from voting, 3 (a) 5
at his/her discretion.
3 (b)
As witnessed my hand this day of 2021
Signed:
NOTES:
1. This Form of Proxy must be received by the Secretary of the Company not less than 48 hours before the time appointed for the Meeting.
2. This Form of Proxy should bear stamp duty of $100. Adhesive stamps are to be cancelled by the person signing the proxy.
3. If the appointer is a Corporation, this Form of Proxy must be executed under its Common Seal or under the hand of an officer or attorney
duly authorized in writing.
STRICT OBSERVANCE OF COVID-19 PROTOCOLS IN
THE PRODUCTION OF THE ANNUAL REPORT
The production team for the NCBFG 2020 Annual Report adhered
to the following safety protocols in order to reduce the risk of
spread and exposure to COVID-19:
Automated temperature scanners used to conduct temperature

checks for all persons entering the building.
Proper physical distancing practised and actively monitored.
Masks were worn by all team members.
Only the crew and the subject being photographed were in

the areas where the photoshoot took place. Subjects being
photographed were permitted to remove masks only at the point
of being photographed. Proper physical distancing was observed.
No sharing of work equipment or stations without the areas

being sanitised prior to being utilised.
Production areas were thoroughly and frequently cleaned

and sanitized.
DESIGN: PHOTOGRAPHY: AUDITORS: PRINTED IN JAMAICA:

Graphics & Production Unit Paul Mullings PricewaterhouseCoopers Lithographic Printers Ltd.
Group Marketing & Communications
HEAD OFFICE:
“The Atrium”
32 Trafalgar Road
Kingston 10
888-NCB-FIRST
[email protected]
www.myncb.com
National Commercial Bank Jamaica Limited | Clarien Group Limited | Guardian Holdings Limited

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Annual Report 2020

7 Notice of Annual General Meeting 21 Chairman’s Message

9 Our Business in Brief

NCBFG ANNUAL REPORT 2020

147 Financial Statements

150 Directors’ Report

53 Management Discussion 367 Shareholdings

57 Executive Summary 10 Largest Shareholders

To be the premier Caribbean financial services group

1 NCBFG ANNUAL REPORT 2020

The focus is never just on the

Stakeholder Value Customer Experience

3 NCBFG ANNUAL REPORT 2020

The race is not just for the swift…it is

People Reward & Fair Competition

5 NCBFG ANNUAL REPORT 2020

The engine is a core element for participating

ORDINARY BUSINESS 3. Election of Directors

a) Article 94 of the Company’s Articles

7 NCBFG ANNUAL REPORT 2020

b) Mr Adrian Lee-Chin was appointed 6. Resolutions in respect of any other business

b) “THAT the total remuneration of all of

5. Appointment of Auditors and their

Leaning on its brand pillars Buoyed by a venerable

9 NCBFG ANNUAL REPORT 2020

NCB Financial Group Limited (“NCBFG”) is the financial holding company of

NCBJ and its subsidiaries provide GHL is the parent company

In spite of the challenges and uncertainties that this year has

11 NCBFG ANNUAL REPORT 2020

GLOBAL BANKING AND

DISTINGUISHED CRISIS THE NEXT 100 GLOBAL AWARDS

JAMAICA STOCK EXCHANGE

THE PSOJ/JSE CORPORATE

BEST ANNUAL REPORT AWARD

BEST WEBSITE AWARD

CORPORATE DISCLOSURE AND

NCBFG is grateful for having a team whose commitment to excellence is unwavering;

* Attributable to stockholders of the parent.

13 NCBFG ANNUAL REPORT 2020

$453B $574B $405B

2019 2020 2019 2020

78.92% $14B $32B $77B $76B

15 NCBFG ANNUAL REPORT 2020

2020 2019 2018 2017

Consolidated Statement of Financial

Profitability Ratios (%)

17 NCBFG ANNUAL REPORT 2020

2016 2015 2014 2013 2012 2011

14,448,560 12,301,790 12,327,120 8,578,858 10,045,862 13,885,301

14,448,560 12,301,790 12,327,120 8,578,858 10,045,862 13,885,301

607,669,433 523,815,161 499,345,092 446,575,055 379,435,519 359,618,113

15.09% 14.45% 15.97% 12.40% 15.71% 25.07%

2020 2019 2018 2017

Stock Unit Information (J$, unless otherwise stated)

Asset Quality Ratios (%)

19 NCBFG ANNUAL REPORT 2020

2016 2015 2014 2013 2012 2011

$5.87 $5.00 $5.01 $3.49 $4.08 $5.64

$41.55 $27.72 $17.93 $18.80 $21.83 $27.30

Approving revisions to the

Reviewing requests for approval

During the 2020 Reviewing the results of Board

Reviewing the structure of Management Committee formed

Approving a stand-alone Anti- Activities undertaken to leverage

COMPOSITION OF Independent Director -

Remuneration includes a retainer for Recruiting to the candidate

Reviewed the Group’s Corporate Governance & Reviewed Candidates for

Focussed on the possible

Reviewed a report on the post-