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Jamaica Money Market Brokers (JMMB) is in the process of closing a deal to increase its share ownership giving it full control of the Intercommercial Bank Limited (IBL), a smallcommercial bank in Trinidad and Tobago.
JMMB currently owns 50 per cent of the shares of the IBL Group, which comprises the Intercommercial Bank and the Intercommercial Trust and Merchant Bank Limited. The other 50 per cent is owned by the Mittal Group.
In a market filing yesterday, JMMB advised the Jamaica Stock Exchange (JSE) that it intends to acquire 100 per cent of the shareholdings in the IBL Group.
The confirmation came following an announcement by IBL’s managing director and chief executive officer, Krishna Boodhai, last week.
“The result will be a much larger Caribbean financial institution providing integrated service to people in the region,” said Boodhai.
However, when contacted, Keith Duncan, JMMB Group chief executive officer, told Wednesday Business that he had no further comment on the issue.
IBL was founded in 1998 as an indigenous bank by the Mittal Group of Companies, which is run by billionaire Indian businessman, Lakshmi Mittal.
JMMB, one of the leading brokerage houses in the Caribbean, offers a range of investment solutions, banking and insurance services in Jamaica, Trinidad and Tobago and the Dominican Republic.
In line with its 2025 vision, it began expanding to other Caribbeanmarkets in 1999 through a joint venture establishing Caribbean Money Market Brokers (CMMB) in Trinidad and Barbados.
In 2005, as a means of further diversifying its business in the region, JMMB acquired the 50 per cent shareholding in the IBL Group.
However, in 2008, JMMB sold its 45 per cent stake in CMMB to partner CL Financial Group in the midst of the recession when it needed cash. Thereafter, CMMB was taken by the Trinidad government, resold and now operates as First Citizens Investment Services.
JMMB in 2011 announced that it was evaluating its strategy to re-enter the securities business in Trinidad.
For the financial year 2012, IBL recorded operating income of TT$2.7 million, a marginal decline on the TT$2.8 million posted the previous year due to a realignment of its portfolio, the company said.
Assets also declined by 9.1 per cent over the prior year to close at TT$69.1 million.
Seeking new opportunities
But the bank in its annual report said it is focusing efforts on working closely with strategic partners to identify opportunities for business growth and development.
Recently, IBL also expanded its network with the latest addition being the Tunapuna branch, bringing the number of such outlets to four.
The bank also recently launched a state-of-the-art Internet banking service and will be introducing a mobile banking service, as well as a network of stand-alone ATMs, Boodhai was quoted as saying.
“We also plan to open two additional branches during the next two years, one in the East-West Corridor and another in South Trinidad, bringing banking services within easy reach of more customers,” he said.
“In 15 short years, we have developed into a full-service bank that can now compete with any of the larger banks in this country,” Boodhai said.
In the Dominican Republic, the JMMB Group plans to increase its retail presence with the opening of new branches, build awareness through marketing and branding and enhance client relationship.
The company has also been growing in the local market, with the acquisition of Capital and Credit Financial Group, with plans to also enter the commercial banking sector in Jamaica.
For the nine months ended December 31, 2012, JMMB’s Group net profits stood at J$3.19 billion, an increase of 77.6 per cent over the corresponding period the previous year.
Total assets increased by J$36.1 billion, or 28.9 per cent, during the same period, moving from J$124.74 billion as at March 31, 2012 to J$160.86 billion.
The JMMB Group is listed on the JSE and traded yesterday at $7. Its ordinary shares are valued at $11 billion on the market.
