VICTORIA Mutual Building Society (VMBS) has announced its intention to launch a new mutual holding company as part of its growth strategy to further drive revenues.

Group Chief Executive Officer Courtney Campbell made the disclosure last week at the company’s hybrid annual general meeting.

Campbell said the creation of this new structure, in compliance with the Banking Services Act, will allow VMBS to raise capital and further enhance its resilience through a new business model.

He said the company submitted a formal application to the Bank of Jamaica in mid-March this year and expects to receive a positive response by mid-year. Several other steps will be pursued in this regard, including a special members’ meeting to provide greater details to shareholders and seek their approval.

“As we look to the future in pursuing a triple bottom line, we’re focused on purpose…in transforming the lives of our members, of our clients, of the communities in which we live and serve, and of our people who work for this organisation. Also, profit is a good thing. The more profitable we are, the stronger we are and better-positioned to serve you and provide the financial solutions that you need,” Campbell said.

For the 2020 financial year ended December 31, 2020, the group achieved a historic net surplus of $2.64 billion — a 23.68 per cent increase when compared with the previous year and 41.69 per cent above the pre-COVID-19 budget.

The group’s revenue grew by 39.51 per cent to $12.55 billion, mainly driven by a one-off boost in income associated with the net gain from the purchase of loan receivables under the National Housing Trust’s Joint Financing Mortgage Programme with VMBS.

For the 2020 December year end the group recorded $14.52 billion in mortgages disbursed, 24.76 per cent higher than 2019, while total loans disbursed amounted to $24.85 billion, a 39.1 per cent increase over the previous corresponding period.

It also increased its shares in British Caribbean Insurance Company by 5.66 per cent — now totalling 37.16 per cent — with the option to acquire additional shares.

Total assets increased by $7.04 billion or 2.88 per cent to $251.85 billion, reflecting strong growth in both on-and off-balance sheet assets.

The CEO further indicated that for the current financial year the group will diversify and integrate its strategic business units services. This includes the roll-out of a comprehensive and integrated international cards programme, starting in October with credit cards and early next year with international debit cards; the introduction of online banking facilities for businesses and a new customer loan portal; the expansion of its money transfer services; and the launch of Victoria Mutual Investment Limited’s enhanced private equity framework, as well as new investment-type offerings.

“If we do all of that very well — driving growth, innovation, and resilience — we will achieve our vision. We will realise this bold vision that we have set to be a leading, Caribbean-based, member-focused organisation, transforming lives by advancing the financial well-being of individuals globally,” Campbell asserted.