Sabrina Gordon, Business Reporter

Dehring Bunting and Golding (DB&G) is in the process of integrating its trading systems with that of newly acquired Scotia Jamaica Investment Management (SJIM), requiring upgrades to its information technology infrastructure, said CEO Anya Schnoor.

The investment bank is in the process of tendering the job.

"The company is presently at the stage of doing the terms of reference to be sent out to vendors, which may include both existing as well as new service providers," Schnoor told the Financial Gleaner.

Implementation date for the system is set for 2009.

The merger of SJIM and DB&G, whose functions are similar, was one of the consequences of Scotiabank's acquisition of DB&G in late 2006 and the subsequent realignment of the two companies to create synergies from dual functions.

Integrating marketing team

Also this month, DB&G's marketing team is being integrated with that of BNS, with the former unit relocating from New Kingston to the bank's corporate headquarters, Scotiabank Centre on the Kingston waterfront.

DB&G is building an IT system that willfully automate all the functions of the company, including those functions now done manually.

"The system will allow better portfolio management capabilities, online services and loan administration," said the CEO, adding that cost estimates for the new system were yet to be determined.

The upgrade comes in light of plans for a wider distribution network where DB&G will have sales staff deployed in more than 20 Scotiabank branches offering wealth management services, in addition to DB&G's existing eight-branch network.

Client base up

The investment bank's client base has now climbed to 35,000, with the addition of SJIM's 8,000 customers.

This increase in clients will help to drive fee income with additional revenue streams to be had from the newly launched pension fund, trust management, and the development of an array of other innovative products/services, with one slated to come on stream the last quarter of this year with additional products in 2008.

SJIM made $200 million profit in 2006.

"We are not issuing earnings estimates," said Schnoor.

"We, however, expect that our purchase of SJIM and association with Scotiabank will bring benefits to the company."

The company is also looking to loan growth by expanding into niche markets.

Loan portfolio increase

As recorded on its balance sheet for the financial year ending March 31, 2007, DB&G's loan portfolio stands at $1.3 billion, a 28 per cent increase over the previous period.

"The merger between SJIM and DB&G will result in synergies in different areas," said Schnoor.

The SJIM operation moved to DB&G's Holborn Road offices.

"The total funds under management (both on and off balance sheet) will be in excess of $88 billion, making the combined company the second-largest securities dealer."

The company has not yet made a final decision on staff, including whether cuts were likely, but Schnoor said yesterday that displacements were unlikely.

"We will be expanding our sales force to cover our wider distribution model. We, therefore, expect very minimal displacements based on our projections," said the CEO.

sabrina.gordon@gleanerjm.com

Taken from the Financial Gleaner, Friday July 27, 2007.