Jamaica Money Market Brokers (JMMB) revealed that it acquired Banco Rio for US$2.1 million ($250.8 million), amid doubling its net profit to $602 million for the second quarter.

JMMB now holds 90 per cent of the Dominican Republic-based savings and loan bank, Banco Ahorro y Credito Rio (Banco Rio), which serves as another key step in JMMB’s strategy of building out an integrated financial services business model in the Dominican Republic market.

The acquisition will also allow JMMB and Banco Rio clients more diversified bundles of financial solutions.

Currently, the financial institution has acquired up to 70 per cent shares of three Dominican Republic companies through the JMMB Holding Company Limited, SRL and its subsidiaries.

“Our operations in the Dominican Republic continue to produce positive results contributing net profits of J$51.5 million for the quarter,” a joint statement addressed to shareholders from group chairman Noel Lyon and group chief executive officer Keith Duncan said. “The Group is now poised to expand its range of services in the Dominican Republic with the approval of its money market mutual funds.”

JMMB commenced operations in the Dominican Republic with its investment services offering, through its subsidiary, JMMB Puesto de Bolsa, headquartered in Santo Domingo. Banco Rio was founded in 2004, but began operating in 2005 with products and services include savings accounts, certificates of deposit, money exchange and consumer, commercial and SME loans.

For the quarter ending June 30, JMMB posted net profit of $602 million, more than doubling the $299 million it posted a year earlier. The positive result was impacted by a 62 per cent increase in net gains on security trading, moving from $757 million in June 2014 to $1.2 billion over the comparative period this year; largely driven by increased activities and capitalising on one-off market opportunities.

According to the company, the results were also bolstered by the Group’s adoption of International Financial Reporting Interpretation Committee (IFRIC) 21, Levies; which resulted in a change in the period in which government taxation was recorded.

“Consequently, the amount paid in April 2015 of J$397.5 million was fully expensed in the quarter. The 2014 results were also restated to conform with the requirements of the interpretation,” the financial stated.

The Group’s net interest income showed positive growth year-over-year, moving from J$1.29 billion to J$1.44 billion, an increase of J$146.8 million or 11.4 per cent. The increase was driven from growth in the Jamaican and Trinidadian loan portfolios, coupled with reduced funding costs.

“In Trinidad and Tobago, the Group’s operations continue to move in a positive trajectory, contributing J$41.2 million for the quarter. Management continues to build out its integrated financial services model through JMMB Investments Trinidad and Tobago Limited and its commercial banking arm, Inter-commercial Bank Limited,” the financial stated.

The asset base of the JMMB Group increased by J$4.8 billion or 2.2 per cent for the period, moving from J$217.7 billion as at 31 March 2015 to J$222.5 billion.

JMMB’s increase in assets was mainly funded by client deposits and repurchase agreements. Additionally, managed funds on a non-recourse basis increased to J$58.8 billion, up 51.2 per cent compared to J$38.9 billion for the prior year.