JMMB Group has acquired ninety percent (90%) of the shares of Banco Ahorro y Credito Rio (Banco Rio) through the group’s Dominican Republic subsidiary, JMMB Holding Company Limited after obtaining regulatory approval for the acquisition, the group informed the Jamaica and Trinidad & Tobago Stock Exchanges today.
Banco Rio is a savings and loans bank, in accordance with the Financial and Monetary Law of the Dominican Republic they are licenced to provide consumer loans; loans to small and medium enterprises (SMEs); commercial loans; credit lines; credit cards, cambio services; savings accounts and certificates of deposit.
“This acquisition serves as another key step in JMMB’s strategy of building out an integrated financial services business model in the Dominican Republic (DR) market. In particular, for all current and prospective JMMB and Banco Rio clients in the DR, this acquisition will pave the way for them to access an even more diversified bundle of financial solutions (through banking and investments), that will serve to achieve their financial goals and objectives at every stage of their life,” states JMMB in its report.
JMMB is a diversified financial group with operations in Jamaica, Trinidad and Tobago and the Dominican Republic.
JMMB made revenues of $4.5 billion in the March 2015 quarter 13 percent ahead of the $3.96 billion generated in the 2014v period but was only able to report a disappointing $119 million in the quarter compared to $488 million in 2014. For the 2015 fiscal year revenues amounted to $18.46 billion or 17 percent ahead of that of 2014 of $15.75 billion. Increased cost which climbed much faster than revenues held profits down for the year but more so in the final quarter. JMMB shares trade on the Jamaica Stock Exchange, and was last quoted at $7.50, or just 6.4 times 2015 earnings.
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[…] JMMB Group posted a net profit of $586 million, an increase of 111 percent over the profit of 2014 after asset tax of $398 million was fully expensed in the 2015 quarter. JMMB earned profit of $278 million and earnings per share of 36 cents for the quarter ended June, this year. The profit for the quarter shows a marked improvement over the mere $79 million reported in the March quarter. Net Interest Income grew year-over-year moving from $1.29 billion to $1.44 billion, an increase of J$147 million or 11.4 percent. This increase was driven mainly by increased margins, resulting from growth in Group’s loan portfolio in Jamaica and Trinidad coupled with reduced costs of funds. “Other operating revenues, namely, gains on securities trading, foreign exchange margins from cambio trading and commission income, showed increases of 62 percent, 20.5 percent and 39 percent respectively, driven largely by increased volume activity and taking advantage of one-off market opportunities,” Noel A. Lyon, Chairman and Keith Duncan, Group Chief Executive Officer, advised shareholders, in a release accompanying the quarterly. Net gains on securities trading, accounted for $1.23 million, was generated in the 2015 period and in 2014, $757 million. After booking the large investment gains, the group still has investment revaluation reserve amounting to $2.25 billion at the end of June which can be shifted to the normal profit stream. “Our operations in the Dominican Republic continue to produce positive results contributing net profits of J$51.5 million for the quarter. The Group is now poised to expand its range of services in the Dominican Republic with the approval of its money market mutual funds. In July 2015, the Monetary Board approved our acquisition of Banco Rio de Ahorro Y Credito, a savings and loan bank”, Lyons and Duncan stated. The released from management continued, “In Trinidad and Tobago, the Group’s operations continue to move in a positive trajectory, contributing J$41 million for the quarter. Management continues to build out its integrated financial services model through JMMB Investments Trinidad and Tobago and its commercial banking arm, Intercommercial Bank.” Operating expenses for the quarter totalled $2.3 billion, up 13 percent compared to $2 billion for the prior year. This increase was mainly attributable to staff related costs, asset tax and expansion of business activities regionally. The asset base of the JMMB Group increased by J$4.8 billion to J$222.5 billion from J$217.7 billion as at 31 March 2015. This increase in assets was mainly funded by client deposits and repurchase agreements. […]
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