Thu | Oct 18, 2018

JMMB gets green light for savings and loan acquisition

Published:Friday | July 3, 2015 | 12:00 AM

JMMB Holding Company Limited, the Dominican Republic subsidiary of JMMB Group Limited, has got regulatory approval for its 90 per cent acquisition of savings and loan institution Banco Ahorro y CrÈdito Rio.

JMMB said the other 10 per cent is owned by a private investor whose identity it did not disclose.

Banco Rio is to be merged with CorporaciÛn de CrÈdito America (CCA), but JMMB appears to still be waiting approval of its 80 per cent acquisition of that company.

At last report in September 2014, the CCA acquisition was approved by the Superintendent of Banks but was pending final sign-off by the Monetary Board of the central bank in Dom Rep.

Asked for an update on Thursday, Patricia Valentine, group corporate communications manager, said the company was unable to provide an answer at this time.

"However, I will provide further details at a later date," said Valentine.

Decade-old Banco Rio offers savings accounts, certificates of deposit, money exchange and consumer, commercial and SME loans. 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.

JMMB indicated plans to acquire the 80 per cent stake in CCA from 2009, according to previous reports, with the cost of the deal then said to be about US$1.2 million. JMMB group declined to reconfirm this price on Thursday.

Last year, the company said the merged entity would create a US$25-million bank by assets, serving a client base of 6,000. It will operate as JMMB Bank.

JMMB entered Dom Rep through investment subsidiary, JMMB Puesto de Bolsa, headquartered in Santo Domingo.

JMMB said Thursday that Puesto de Bolsa closed the 2014 calendar year as "the most profitable broker" in Dom Rep and had the largest funds under management. Details were not provided.

The investment firm has three branches in Dom Rep - two in Santa Domingo and one in Santiago.