JMMB reports record profit
Jamaica Money Market Brokers Limited (JMMB) doubled its net profit to J$2.24 billion at the end of its financial year March 2012, the highest profit ever made by company in its 20 years of operation.
JMMB made net profits of $1.14 billion last year.
Its record performance comes as it enters the final stretch of its acquisition of Capital & Credit Financial Group, for which it will shell out J$2.95 billion in cash and another J$1.27 billion in a share swap.
CCFG shareholders have until June 15 to accept the J$4.55 per share offer and JMMB hopes to close the transaction by June 29.
JMMB liquidated J$10.5 billion of securities during the year, and was left with J$4.16 billion of net cash at the close of March.
The two companies will merge at the close of the transaction.
"There is discussion around what the potential structure would look like should the offer be successful," Senator Imani Duncan-Price, JMMB group marketing manager, told the Financial Gleaner.
"Nothing has been decided on but we would like to begin the integration process as soon as possible, should the offer be successful," she said.
CCFG spokeswoman Michelle Wilson Reynolds said the company has began advising staff in "preliminary written communication" of the implications of the merger.
"JMMB can't wait until the offer closes to size up what they will need. Everyone has received some form of notification to explore opportunity within the new entity, but to do anything definitive would be premature," said Wilson Reynolds.
JMMB has attributed its profit performance to mostly gains made in trading of securities which jumped 66 per cent to J$2 billion.
Net revenue also rose 47.5 per cent to J$5.99 billion.
Its balance sheet also grew to J$125 billion in total assets, and capital of J$10.9 billion.