Regional financial conglomerate JMMB Group, in keeping with its many plans for growth, said it remains focused on going after increased shareholder value as it looks to deliver on the objectives of its vision 2026 road map.

Speaking at the company’s annual general meeting last Friday, Group CEO Keith Duncan said a number of the plans now significantly advanced will help the over-three-decade-old company to unlock new products and services, expand segment performances, and increase in value.

In its 2022 financial year, marred by a challenging economic environment (driven by high inflation and rising interest rates), the group’s smart strategy hinged on diversification, it said, helped the company to realise profit of over $6 billion following increased contributions across its three operating regions in Jamaica, Trinidad & Tobago and the Dominican Republic as well as from its 23.32 per cent stake in Sagicor Financial Company (SFC). Following SFC’s recent acquisition of Canadian life insurance company Ivari, the group is even more optimistic that contribution from this segment will for the foreseeable future continue to provide long-term value for the group.

“We continue to have a very robust pipeline in terms of our expansion opportunities. We have been expanding through DR which is also to become the gateway to Central America and we continue to explore possible opportunities as we look for new business in this market. Even in a challenging environment we continue to look at expansions, our business lines, payment products, new services, new markets to create more value for our shareholders,” Duncan said.

The CEO, in pointing to a number of new products soon to be rolled-out under its payment solutions portfolio, said the intent is to not only grow in the area but to also expand its offering in the digital solutions market while providing customers with greater access and full integration benefits.

“The goal for our money transfer services/remittance business line is to hit a $1 billion in profitability in five years’ time. We have a strong platform to build on and we have the products that we will be rolling out, which will enable us to get to this target. We just launched our MoneyGram service in September, so we are now partners with them and we have also just launched the Visa prepaid card for remittances. Soon we will be launching our outbound offerings as we build out the infrastructure to get to the targeted number,” Duncan told shareholders at the AGM.

The outbound services to be labelled as ‘cross-border services’, he said, will allow JMMB customers the ability to track international transfers at a fraction of current costs for wire transfer services.

“We know that this product will be beneficial and a winner for particularly small businesses as they continuously trade. We have also launched an airport card in partnership with Norbrook Transaction Services and we continue to develop more solutions under the payments ecosystem as we go. This is a critical area for revenue diversification for us as a group,” the CEO added.

Similarly, the group, through its new real estate business line launched last year, continues to hunt significant value from its land bank through its list of real estate development projects from which it hopes to capitalise on growth opportunities in the fast-growing market. To this end, work to deliver over 100,000 square feet of commercial office space for projects in Kingston and Mandeville, it said, also remains on track for implementation within the next three years.

From its multi-storey Zanzibar project, to be developed in the vicinity of its Haughton Terrace headquarters, the group is eyeing a substantial returns on investment. The project, said to be in the advance phases of design, is now moving to have the necessary approvals granted by the respective State agencies before development commences.

“This project is expected, upon completion and the relevant approvals, to house office spaces for sale and lease, and is projected to generate a return on equity of over 50 per cent for the group,” corporate development manager for group real estate, Tracey-Ann Creary told the Jamaica Observer.

Moving to further build-out its asset class through private equity, the group in piloting a number of deals has been stepping up its pace in the area. Following the launch of its Vertex SME Holdings private equity vehicle, the group has been able to provide funding for a growing list of transactions across the region including the recent local acquisition of Island Car Rentals.

“JMMB Securities Limited [JMMBSL] through Vertex has taken a 25 per cent equity stake in Island Car Rental Holdings Limited [ICRH], the holding company of Island Car Rental [ICR]. This deal comes as part of the transaction which facilitated the change of ownership of Island Car Rental to ICRH, with the acquisition 100 per cent of the shares, in both ICR and Jamaica Rental Company Ltd, by the Ryan Parkes and Opal Parkes-led company,” general manager for JMMB Securities Limited Kareem Tomlinson further said to the Business Observer.