NCB Financial reports $5.97b profit for first quarter

 

NCB Financial Group is reporting a $5.97 billion profit for its first quarter.

 

This reflects an improved performance compared with the October to December period in 2022.

 

Group Chief Financial Officer Malcolm Sadler says the implementation of a new International Financial Reporting Standards (IFRS) framework, was reflected in the results. 

 

"The group adopted IFRS 17, effective October 1, 2023. This materially changes the recognition and measurement of insurance contracts, mainly in the life, health and pension segment, and the corresponding presentation and disclosures in the group's financial statements," he noted. 

 

Mr. Sadler said the net profit attributable to shareholders was $3.1 billion, which was $1.7 billion or 123 per cent higher than the prior year's result.

 

Operating revenue for the quarter totalled $34.5 billion, reflecting a 28 per cent or $7.6 billion increase compared to the prior year.

 

The company's life insurance segment led the growth, as changes from the adoption of IFRS 17 resulted in an initial gain of approximately $3 billion. 

 

Operating expenses amounted to $26.2 billion - a $3.2 billion or 14 per cent increase. 

 

"The current quarter also included the full year's asset tax charge of $2.5 billion, which increased by $202 million or 9 per cent over the prior year. Life, health and pension contributed $9.7 billion to the group's operating profit, an increase of $7.7 billion compared to the prior," Mr. Sadler outlined. 

 

He was speaking at the company's annual general meeting on Friday.