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Jamaica National posts a net surplus of J$2 billion
AL EDWARDS
Friday, September 30, 2005
Jamaica National's general manager Earl Jarret addresses its AGM held at its Constant Spring Road headquarters on Wednesday. In the background is chairman, Oliver Clarke.
The Caribbean's largest building society group, Jamaica National, continues to put in a good performance, posting a net surplus after tax of J$1.98 billion with assets of $56 billion for the financial year 2004/2005.
A strong net interest income of $3.3 billion, gains on the disposal of investments of $975 million and after tax net surplus of $283 million from the subsidiaries, provided solid support to this year's positive performance. The jewel in the crown continues to be the building society, which registered a net surplus of $1.7 billion for the period under review. This represents a 13 per cent increase over the previous year's figure of $1.5 billion.
As at March 2005, Jamaica National Building Society's (JNBS) asset base stood at an impressive $42.7 billion, 20 per cent higher than the previous year. JNBS attributes this to an increase in its savings funds, which have moved to $30.3 billion. Capital and reserves, that essential buffer, was prudently managed and at $11.4 billion recorded a 32 per cent increase on the previous year. This has resulted in a ratio of capital and reserves to savings of 38 per cent and of capital and reserves to assets of 27 per cent.
JNBS has made a concerted effort with its mortgage business and has added some attractive features which have seen it increase its market share.
For the period under review, its mortgage portfolio stood at 13,000 with a value of $14 billion. This performance reflected a slight increase of around 7 per cent on the previous year. More loans were approved (1,903) for financial year 2004/2005 as opposed to 2003/2004 (1,560).
In the company's annual report, chairman of the Jamaica National Group Oliver Clarke pointed out that in terms of assets, savings and capital base, Jamaica National was now ranked the third player in the local financial sector according to unaudited financial results released by the Bank of Jamaica for all local commercial banks, building societies and licensees under the Financial Institutions Act for the financial year ended March 31,2005.
Speaking with Caribbean Business Report after its Annual General Meeting, which took place at its corporate headquarters located at Constant Spring Road, Kingston, yesterday General Manager Earl Jarrett said: "Our focus for the year has been to build our relationship with the members in accordance with the principles of mutuality which see us ensuring that we represent good long-term value.
"We will soon be introducing Wireless Application Protocol (WAP) banking which will see our members able to access their accounts, make enquires, pay bills, do transfers and so forth all over their mobile phone handsets. We have the software and are presently working with the regulators. With so many people having cell phones this will democratise banking. We have created a brand for this, but unfortunately I can't tell you what that is just yet.
"We now have in place the technology that allows us to develop a credit score system. This means we can underwrite good loans quickly. We have also been building out our loan origination software which will enable us to capture all prospects.
"This year we generated strong results. When you look at our performance, we paid out more interest last year in relation to our interest revenues. The key things for us are the importance of our overseas customers and the growth of our savings portfolios. We grew our savings portfolio by about $4 billion and of this $1.5 billion came from our overseas customers."
JN Real Estate Company contributes $1.2 billion to the Group. The overseas market accounted for 56 per cent of this sum and contributed 46 per cent of the commissions earned during the current financial year. This year saw 160 properties under management of which 150 were properties from JN's overseas clients.
Its money transfer arm recorded double digit growth and JN took this subsidiary to St Vincent and the Grenadines. JN will continue to open its Money Shops (bill payment, foreign exchange trading, money transfers) across the island with one earmarked for Knutsford Boulevard.
JNBS acquired the Jamaica Automobile Association (JAA) and has established a new company called The Jamaica Automobile Association Services (JAAS). This company will allow members to benefit from the internationally branded AA programme, which includes the provision of roadside assistance during roadside emergencies.
Its IT subsidiary, Management Control Systems, acquired a 75 per cent interest share ownership of Manufacturers Credit Information Services (providers of a petrol swipe card called the Advance Card).
"We are looking to have a Caribbean focus. Already we are placed in both the Cayman Islands and St Vincent and the Grenadines. Our Money Transfers should ensure an easy entry and we are looking at ways to offer our many services. The CSME is now tackling some real estate issues across the region and hopefully that will help our interests in that area," said Jarrett.
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Source : Jamaica Observer
AL EDWARDS
Friday, September 30, 2005
Jamaica National's general manager Earl Jarret addresses its AGM held at its Constant Spring Road headquarters on Wednesday. In the background is chairman, Oliver Clarke.
The Caribbean's largest building society group, Jamaica National, continues to put in a good performance, posting a net surplus after tax of J$1.98 billion with assets of $56 billion for the financial year 2004/2005.
A strong net interest income of $3.3 billion, gains on the disposal of investments of $975 million and after tax net surplus of $283 million from the subsidiaries, provided solid support to this year's positive performance. The jewel in the crown continues to be the building society, which registered a net surplus of $1.7 billion for the period under review. This represents a 13 per cent increase over the previous year's figure of $1.5 billion.
As at March 2005, Jamaica National Building Society's (JNBS) asset base stood at an impressive $42.7 billion, 20 per cent higher than the previous year. JNBS attributes this to an increase in its savings funds, which have moved to $30.3 billion. Capital and reserves, that essential buffer, was prudently managed and at $11.4 billion recorded a 32 per cent increase on the previous year. This has resulted in a ratio of capital and reserves to savings of 38 per cent and of capital and reserves to assets of 27 per cent.
JNBS has made a concerted effort with its mortgage business and has added some attractive features which have seen it increase its market share.
For the period under review, its mortgage portfolio stood at 13,000 with a value of $14 billion. This performance reflected a slight increase of around 7 per cent on the previous year. More loans were approved (1,903) for financial year 2004/2005 as opposed to 2003/2004 (1,560).
In the company's annual report, chairman of the Jamaica National Group Oliver Clarke pointed out that in terms of assets, savings and capital base, Jamaica National was now ranked the third player in the local financial sector according to unaudited financial results released by the Bank of Jamaica for all local commercial banks, building societies and licensees under the Financial Institutions Act for the financial year ended March 31,2005.
Speaking with Caribbean Business Report after its Annual General Meeting, which took place at its corporate headquarters located at Constant Spring Road, Kingston, yesterday General Manager Earl Jarrett said: "Our focus for the year has been to build our relationship with the members in accordance with the principles of mutuality which see us ensuring that we represent good long-term value.
"We will soon be introducing Wireless Application Protocol (WAP) banking which will see our members able to access their accounts, make enquires, pay bills, do transfers and so forth all over their mobile phone handsets. We have the software and are presently working with the regulators. With so many people having cell phones this will democratise banking. We have created a brand for this, but unfortunately I can't tell you what that is just yet.
"We now have in place the technology that allows us to develop a credit score system. This means we can underwrite good loans quickly. We have also been building out our loan origination software which will enable us to capture all prospects.
"This year we generated strong results. When you look at our performance, we paid out more interest last year in relation to our interest revenues. The key things for us are the importance of our overseas customers and the growth of our savings portfolios. We grew our savings portfolio by about $4 billion and of this $1.5 billion came from our overseas customers."
JN Real Estate Company contributes $1.2 billion to the Group. The overseas market accounted for 56 per cent of this sum and contributed 46 per cent of the commissions earned during the current financial year. This year saw 160 properties under management of which 150 were properties from JN's overseas clients.
Its money transfer arm recorded double digit growth and JN took this subsidiary to St Vincent and the Grenadines. JN will continue to open its Money Shops (bill payment, foreign exchange trading, money transfers) across the island with one earmarked for Knutsford Boulevard.
JNBS acquired the Jamaica Automobile Association (JAA) and has established a new company called The Jamaica Automobile Association Services (JAAS). This company will allow members to benefit from the internationally branded AA programme, which includes the provision of roadside assistance during roadside emergencies.
Its IT subsidiary, Management Control Systems, acquired a 75 per cent interest share ownership of Manufacturers Credit Information Services (providers of a petrol swipe card called the Advance Card).
"We are looking to have a Caribbean focus. Already we are placed in both the Cayman Islands and St Vincent and the Grenadines. Our Money Transfers should ensure an easy entry and we are looking at ways to offer our many services. The CSME is now tackling some real estate issues across the region and hopefully that will help our interests in that area," said Jarrett.
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Source : Jamaica Observer