Jul 2013 Financial News

JMMB Bank targets agriculture, resorts for loans

Jul 10, 2013

Newly rebranded JMMB Merchant Bank is already reporting substantial growth in loans and deposits in the quarter just ended and is telegraphing that it aims to be aggressive in its hunt for market share.

It is also reporting solid prospects in the agriculture and resort markets.

Chief Executive Officer Jerome Smalling said Tuesday at the bank's relaunch that JMMB Merchant has grown its loan book by 20 per cent in the June quarter and expanded its deposit base by 15 to 20 per cent.

JMMB Merchant officially opened for business under its new name Tuesday, a year after its acquisition by JMMB Group, which took over Capital & Credit Financial Group (CCFG).

Capital and Credit Merchant Bank (CCMB) was the prize asset in the takeover.

Smalling said the bank intends to pursue further growth by providing a superior client experience.

"It's about how we will interact with our clients - not about a product, a service or fancy names. We are structuring products based on the needs of clients," he said.

JMMB Group acquired CCFG for J$4 billion and, according to Smalling, is now the third-largest financial conglomerate. Its asset base rose by J$42 billion to J$167 billion at year end March 2013.

CCMB was heavily indebted at takeover, but the bad debt was placed into a newly created vehicle. The value of the transferred debt has not been disclosed, but a portion of the J$3 billion of non-performing loans was reportedly cleared ahead of the takeover.

Dennis Harris, chairman of JMMB Merchant, said Tuesday that the bank was focused on managing risk.

"The majority of our directors are independent. It is the same at the group and bank level. Sub-committees are chaired by independent directors as well," he said

The chairman said most of the bad debt had been transferred to the new company, and would therefore not impact the bank's operations.

Last year, JMMB CEO Keith Duncan had said up to 70 per cent of the CCNM debt would have been shifted to the new company.

"We had some outstanding loans and JMMB had the same," said Harris. "They were put together. There is only one small portion on the books of the bank."

He said collection of the debts is going well.

Meantime, Patrick Ellis, the chief financial officer for JMMB Group, said the bank was getting a lot of traction in the agriculture and tourism sectors for new loans.

"We are getting a lot of requests coming through the door. They are good credits, some of which we have actually approved," he said.

The merchant bank will offer personal banking solutions as well as corporate products at three locations: Grenada Way in New Kingston, Ocho Rios and Montego Bay.


Source:
business@gleanerjm.com
Jamaica Gleaner
Wednesday July 10, 2013

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