JMMB group is intent on growing its presence in the Dominican Republic (DR), the largest economy in the Caribbean region, targeting a market which represents 47 per cent of the region’s GDP and with more than 10 million consumers.

“The DR is not viewed as a mere gateway but as a destination for JMMB expansion,” Julian Mair, Group Chief Investment Strategist JMMB Group, states.

Operations in the DR made net profit of $77.1 million for six months ending September 30, 2015 which might appear a mere drop in group post-tax group earnings of $1.21 billion for the period.

But the Group is planning, its managers say, to add money market mutual funds and other new services at the newly acquired savings and loan bank, Banco Rio de Ahorro Y Credito JMMB Bank SA (JMMB Bank) all of which offer prospects for accelerating revenue growth.

On the first of July 2015, JMMB Holding Company Limited acquired 90 per cent equity and obtained management control of Banco Rio — a savings and loan bank for US$2.15 million (J$254.5 million) after receiving regulatory approval.

Patrick Ellis, group chief financial officer, JMMB Group, states that, “Having obtained approval for JMMB Bank, Mutual Fund in addition to awaiting final approval for our pension fund manager, the Group is now poised for further growth in the Dominican Republic as it now has the ability to provide a full range of services.”

The Group is also targeting, he said, “operational and cross-selling synergies through the launch of consolidated offerings through JMMB’s flagship head office in Santo Domingo which will house all of the financial solutions offered by the Group”.

The Group indicated Monday that it has tweaked the application made to the Monetary Board in the Dominican Republic and is now awaiting the grant of licence to acquire Corporación de Crédito America (CCA).

“The application is with the Monetary Board in the Dominican Republic; with a modified submission under review by the Monetary Board to incorporate the transfer of CCA assets and liabilities into JMMB Bank (formerly Banco Rio), also a newly acquired entity in the DR,” it was said.

CCA offers savings accounts, loans, credit cards, and cambio services to the retail market. It was founded in 1971 and formerly operated as American Premium Funding SA.

The intent of the planned merger is to create a more viable entity, as subject to the approval from the Monetary Board, both entities will be consolidated into one entity under JMMB Bank, allowing for a wider range of financial solutions to be provided, the Group states.

Since the acquisition of Banco Rio, the acquired business has contributed $52.08 million in revenue and incurred operating expenses of $55.22 million for the Group.

But Guillermo Arancibia, country manager JMMB Dominican Republic, is upbeat about future economic prospects.

He told the

Jamaica Observer, “In the medium term we can forecast the continuation of the GDP growth levels being unaffected even with scheduled presidential and congressional elections. Although we anticipate broad levels of stability in most areas, the economy is still expected to experience FX pressure and the normal monetary policy response; we also foresee that the fiscal deficit will be funded by debt issuances in either international markets or local markets both of which have shown strong support for the credit.

Arancibia concluded, “We anticipate that JMMB will organically grow in the medium term as a result of the new companies and new business lines that are now in start-up process and are expected to mature bringing volumes and clients, compensating for adverse market conditions, if any. Inorganic growth may also be considered, when and if necessary, as an alternative to accelerate growth.”

Arancibia hinted that other non-English markets are also being explored, noting, “The JMMB Group is always exploring market opportunities in the best interest of its shareholders, clients and other stakeholders, which may include further expansion in other Caribbean or Central American countries.

Mair added that the DR operation in “a country that operates under a different legal framework and also speaks Spanish, certainly supports our ambitions of continued growth within the Caribbean and Central American region”.

It was stated that the difference in language is not a challenge for the JMMB Group, as the key Dominican Republic team members are bilingual.

Mair said he believes that market opportunities exist in non-English-speaking markets as evidenced in the growth of operations in the DR, adding that the JMMB Group is also willing to facilitate corporate entities seeking to explore financial pursuits in that country with its range of financial solutions, relationships and expertise.

He noted that Jamaican brands such as Jamaica Producers Group Limited have been “proactive in capitalising on synergies that exist between Jamaica and the Dominican Republic”.