JAMAICA Money Market Brokers (JMMB), under the stewardship of Keith Duncan, put in a stellar performance for the six-month period ended September 30, 2011 which saw net profits rise by 200.2 per cent year on year to J$1.37 billion.

That sum represents more than what was recorded for the entire financial year in 2010. Of particular note is the rise of Net Interest Income which brought in a whopping J$1.63 billion spelling a 53.8 per cent increase on the previous year’s figure. This is all the more remarkable given the impact the Jamaica Debt Exchange (JDX) has had on this revenue line of most financial institutions in Jamaica.

The efficiency ratio (administrative costs as a percentage of operating expenses) improved to 44.9 per cent from 66.4 per cent when compared to the corresponding period. A release issued by the group read: “We continue to tightly manage operating expenses, which increased by 12.6 per cent over the period. The overall impact of increased revenue and increased efficiencies from operations resulted in J$1.65 billion or 176.9 per cent increase in operating profit.”

JMMB has embarked on a mission to launch integrated financial services and this strategy is paying off. It recently launched its JMMB Car Solution which it proclaims is the only product of its kind on the market, offering an investment, credit and insurance element, as well as discounts at select car dealer partners.

This is a novel solution as JMMB’s Marketing Communications Manager Lauri-Ann Ainsworth explained: “JMMB Car Solutions is not simply a car loan facility. It is primarily aimed at first time car buyers and offers up to 90 per cent financing on cars up to five years old. With JMMB Car Solutions a deposit is not needed but rather one starts to save with us in order to address those necessary car buying expenses. We offer affordable rates plus a J$30,000 cash back facility. One can also get a 22 per cent discount on insurance through our brokerage.”

JMMB Insurance Brokers with a client base of over 160,000 also launched its Smart Choice Home Insurance promotion. This product gives clients an opportunity to enjoy significant savings of up to 19 per cent on their home insurance and to get J$1 million in free contents coverage.

The group has been bold in attaining critical mass by acquisitions, mergers and forging close ties with other financial institutions particularly in the region. Earlier this year it audaciously made a move to acquire Capital & Credit and is awaiting approval from the Bank of Jamaica.

This deal is worth around J$4.5 billion. Back in 1999, it acquired a 45 per cent interest in Caribbean Money Market Brokers (CMMB) but sold its interest nine years later to Lawrence Duprey’s CL Financial for J$2.3 billion. JMMB’s Group CEO Keith Duncan has said that over the next few years JMMB plans to re-enter the securities business in Trinidad & Tobago.

JMMB also has an 80 per cent interest in a securities dealership in the Dominican Republic called JMMB BDI America. This entity is reporting a profit of US$700,000 (J$60 million). In Trinidad it has a 50 per cent stake together with Mittal in Intercommercial Bank Limited (IBL).

All in all JMMB has 170,000 clients and assets under management on-balance sheet of J$160 million. Off-balance sheet that figure is closer to J$180 billion. For the period under review JMMB’s capital to risk weighted assets stood at 30 per cent, whereas the Financial Services Commission (FSC) benchmark stipulates a minimum of 14 per cent. Its capital to total assets ratio came in at 11.5 per cent in 2010 whereas the FSC benchmark is six per cent.

Speaking with Caribbean Business Report last night, JMMB’s Chief Financial Officer Patrick Ellis said: “We have had a remarkable six-month period. Our strategy is to focus on growing core revenue lines and to maintain operational efficiencies. We did extremely well with our net interest income and grew our operational revenues. Both our pension and insurance businesses are now getting traction.

Our operational expenses were up 7.9 per cent for the quarter but we had a notable one-off expense and when you take that out of the mix we would have been well in line with the current inflation rate number.

The decision to offer a complete integrated suite of products and services has paid off. We have completed our application to acquire Capital & Credit and have submitted it to the Bank of Jamaica. It is now conducting its internal investigations and checks which should run for 60 days.”