Oct 2006 Financial News

JMMB expects challenging 2007

Oct 25, 2006

A CHALLENGING 2007! That’s the word coming from the Jamaica Money Market Brokers Ltd. (JMMB) camp. The company, which saw a 1.3 increase in profit as compared to last year, is expecting to take some hits in its bottom line, as it embarks on a product expansion and market penetration plan.

“While we pursue the delivery of exciting new product solutions and are penetrating new markets in the 2007 financial year, these actions may impact profit growth in the short-term,” said JMMB Group CEO, Keith Duncan in the companys annual report.

According to Duncan, these initiatives will be taking place against a backdrop of declining net interest margins and increased short-term US interest rates.

“Interest rates in the USA and Jamaica are expected to remain at around the current levels through to the last quarter of this financial year, which creates a challenging environment for the entire industry. With a general election anticipated in Jamaica and the uncertainty that this creates, we do not expect to see any significant rebound in the stock market. All these factors taken together will limit any significant growth in revenues while we continue with our expansion plans. Therefore, we expect the 2007 financial year to be a challenging one that will require careful management in balancing future expansion initiatives and current operations,” said Duncan. Some of these initiatives include continued regional diversification  the company has already taken steps to establish a presence in the Dominican Republic as a stepping stone to further penetration in the Latin American market.

“Diversification spreads our risk, enhances our understanding of financial markets elsewhere, strengthens our management capabilities and has added to our profitability,” said Chairman of JMMBs board, Noel Lyon.

With regard to product expansion, one of the company’s subsidiaries JMMB Insurance Brokers Ltd, recently received regulatory approval to offer general insurance products, along with its current suite of health and life insurance products. “Property and motor insurance solutions will be offered to JMMB clients and the general public commencing this financial year,” said Lyons.

Marita Greenidge
The Barbados Advocate
Tuesday, October 24, 2006.
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