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JMMB paid $93m for AIC Securities

Published:Wednesday | August 27, 2014 | 12:00 AM

Jamaica Money Market Brokers Limited (JMMB) paid TT$5.36 million ($92.7m) for AIC Securities Limited, the company disclosed in its first quarter earnings report.

JMMB acquired 100 per cent of AIC Securities of Trinidad in April. It booked a gain of $9.7 million from the transaction, but said the figure could be adjusted on a final valuation of its new asset, due by the end of its financial year at March 2015.

The value of AIC Securities, a former member of the AIC Financial Group, was estimated at around $102 million at acquisition.

The company offers portfolio management and investment advisory services, and stockbrokerage services.

JMMB made net profit of $579 million or 34 cents per share in the quarter ending June, a steep drop from $832 million or 46 cents per share in the comparative June 2013 quarter. The shrinkage was due to a spike in expenses, which grew by more than half a billion to $1.7 billion.

JMMB said its operating costs rose with the acquisition last year of IBL Group, comprising a commercial bank and a merchant bank, also located in Trinidad.

IBL contributed $323 million to expenses, while another J$272 million of expenses was due "mainly to integration costs, growth in subsidiaries in the regional markets, and normal inflationary increases," the company said.

JMMB group assets climbed to $215 billion, including a cash hoard of $28 billion, at the end of June, up from $207 billion at year end March 2014.