Notes To Financial Statements - Jamaica National

More documents

Recommendations

Info

Business ReviewJN Fund Managers LimitedDespite the pressures in markets globally andlocally, JN Fund Managers will continue to provideopportunities and financial solutions to its clients. Thecompany remains forward-thinking and is steadfastin its commitment to generate wealth creation forindividual and corporate clients.The Board of Directors provide astute corporategovernance and the company’s staff remains highlyengaged and dedicated to the shared mission—tocreate wealth and financial security for our clients.Keith SeniorGeneral ManagerNational Building Society of CaymanAt the end of fiscal year 2008/2009, JN FundManagers Limited (JNFM) recorded strong financialperformance evidenced by steady growth inits investment portfolio and off balance sheettransactions. Funds under management rose by 28.6percent to $17.003 billion, an increase of $3.780Billion over the previous year.The company’s pre-tax profit increased by $232.4Million, an increase of 242.59 percent over theprevious fiscal year. Each fiscal quarter saw astrengthening of the company’s profits over theprevious year’s quarter, reflecting the positiveresults of clearly defined strategies and closeadherence to operating discipline. This occurred ina negative environment, adverse market conditionsand financial meltdowns in economies around theworld. Challenges experienced by other institutionsdue to exposure to toxic assets were not faced byJNFM, which was not similarly exposed.Business in pension fund management andadministration increased with new contractsnegotiated, moving pension fund assets to $6 billionat year end.During the period under review, JNFM refinedits selling strategies, reviewed distributionrelationships and strengthened market positioning.Its achievements were due, in large measure, to thecompany’s fiscal prudence, attention to changingclient needs, and expertise in the management ofmultiple asset classes.Access to account information online is scheduledfor completion in the new financial year; and a newwebsite will also enhance the client experience.C A Y M A NDunbar McFarlaneGeneral ManagerThe National Building Society of Cayman (NBSC)grew its asset base by 12 percent above the2007/2008 financial year, with the Balance Sheetamounting to CI$26.37 Million at March 31, 2009.The company recorded profits of some CI$423,000,which represents a reduction of 58.5 percent overthe previous year.NBSC ended the year in a comparatively strongerfinancial position. Our savings fund increasedby 41 percent to CI$19.75 Million; liquid assetsgrew by 261 percent to some CI$5 Million; fixedassets increased substantially to CI$1.9 Million,while liabilities to our parent society, JNBS, weresignificantly reduced from CI$4.75 Million to someCI$483,000.Mortgages valued at CI$5.73 Million were sold toJNBS in December 2008; and, thereafter, the NBSCadopted a strategy to build the Savings Fund andmaintain greater liquidity. This approach was drivenby a commitment to place less reliance on fundingsupport from JNBS.NBSC ended the year with a mortgage portfoliovalued at CI$18.46 Million, which is 10.5 percentbelow the 2007/2008 year-end balance. Mortgagesmanaged on behalf of JNBS increased from CI$24.8Million to CI$25.6M. It should be noted that,33
Business Reviewalthough the Savings Fund increased by41 percent, this was outstripped by Interest Expenseswhich grew by 58 percent. On the other hand, themortgage portfolio decreased by 10.5 percent, andLoan Interest Income fell by 24 percent.Fees earned from money transfers increased by32 percent during the year, despite the economicchallenges and adversity experienced by Jamaicanwork permit holders, who are our primary clients.This performance, in the context of an unchangedfee structure, is due to growth in the number oftransactions and the consistent efforts of JNMTAgents. Remittances also contributed to foreignexchange gains, which augmented our incomeappreciably. Our commissioned income ofCI$788,000 fell just short of the CI$794,000 earnedin 2007/2008; and fees from the management ofthe mortgage portfolio owned by JNBS contributedsignificantly to this.Operationally, customer service improved withthe commissioning of the NBSC’s first ATM at ourlocation. This has assisted in expanding our serviceofferings to customers and providing more touchpoints for interaction with the building society.JN Money Services LimitedLeesa KowGeneral ManagerJN Money Services Limited (JNMS) was successfulin its remittance and bill payment operations in the2008/2009 financial year, despite the adverse effectsof the global economic crisis, and the increasedstringency of the regulatory controls in both Jamaicaand the overseas markets in which we operate.Our current distribution network in the UnitedStates of America, the United Kingdom, Canada,the Cayman Islands, Dominica, and St. Vincent &the Grenadines was bolstered as JNMS extendedits international presence by launching remittanceservices in Ghana through a partnership with theMerchant Bank of Ghana. The company now has anetwork of 135 Agents and 20 subsidiary locationsoverseas, and our Caribbean and Latin Americannetwork in some CARICOM states, the DutchCaribbean, the French West Indies and Bermuda, asa result of our partnership with MoneyGram.Local distribution continued to expand withremittance facilities being offered in 15 JN MoneyShop Xpress locations, four City of Kingston CooperativeCredit Union (COK) branches and fournewly-established independent Agents across theisland.The inbound transactions of the JN Money Transferbrand achieved growth of 8 percent across allmarkets during the last year. While the overallvalue of transfers sent recorded a 9 percent increaseover the prior year, it became evident in the lastquarter that senders begun to feel the impact ofthe global economic crisis, as the average value oftransfers started to decline. In the case of outboundremittances, transactions grew by approximately11 percent for the financial year 2008/2009. Ourintra-island service grew by 190 percent due to ourpartnership with the National Housing Trust (NHT)to facilitate the processing of NHT ContributionsRefunds throughout our network.The bill payment facility continued to grow as, inaddition to the 15 JN Money Shop Xpress locationsisland wide, we have signed on new companiessuch as M. Z. Holdings Jamaica Limited (CoolCards), Columbus Communications Jamaica Limited(FLOW), Long Mountain Country Club, NuvilleJamaica, First Union and Contact Net. Bill paymenttransactions increased by 184 percent over the lastfinancial year.JNMS intends to continue to build and maintainits customer base though our Loyalty Programme,which offers rewards for use of the JNMT service.The programme currently includes more than 18,000members located across the UK, USA and Canada.JNMS has also remained a good corporate citizenby providing assistance to the education, health andsports sectors.It should be noted that remittances worldwide arepredicted to decline over the next year due to therecession in major source countries, such as theUSA, Spain, Japan and the UK; however, JNMS iscommitted to contributing to the continued successof the JN Group. We have initiated projects to34
Page 4 and 5: Table of Contents2 Mission Statemen
Page 6 and 7: Notice Of Annual General MeetingNot
Page 8 and 9: Mergers, Acquisitions & FoundersWes
Page 10 and 11: The Batticks: A Special Familywith
Page 12 and 13: PictorialTuey Brady Murdock (2nd le
Page 14 and 15: PictorialDelano Franklyn (right), f
Page 16 and 17: Board of DirectorsThe Hon. Oliver C
Page 18 and 19: Board of DirectorsMr. Earl Jarrett
Page 20 and 21: Board of DirectorsMr. William Mahfo
Page 22 and 23: Board of DirectorsMr. John Small ha
Page 24 and 25: Corporate Governance StatementThe J
Page 26 and 27: Chairman’s Reportcomputerised man
Page 28 and 29: General Manager’s Report 2008/200
Page 30 and 31: General Manager’s ReportSoftware
Page 32 and 33: Vision StatementWe are the premier
Page 34 and 35: Business ReviewBusiness ReviewJN Gr
Page 38: Business Reviewensure sustained gro
Page 41 and 42: Business ReviewNEM Insurance Compan
Page 43 and 44: Corporate Social ResponsibilityJama
Page 45 and 46: Corporate Social ResponsibilitySach
Page 47 and 48: Corporate Social ResponsibilityDorc
Page 49 and 50: Values StatementThe success of the
Page 51 and 52: Values Statement cont’dStaff: We
Page 53 and 54: Senior andRegional ManagersValues S
Page 55 and 56: Values Statement cont’dRegulators
Page 57 and 58: Chief Office & Overseas ManagersCla
Page 59 and 60: Directory ListingsOverseas Money Tr
Page 61 and 62: Subsidiaries & Associated Companies
Page 63 and 64: Attorneys-at-Law, Auditors & Banker
Page 65 and 66: Auditor’s Report62
Page 67 and 68: Financial Statements64
Page 75 and 76: Notes To Financial Statements72
Page 87 and 88:
Notes To Financial Statements84
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
show all

Notes To Financial Statements - Jamaica National

Create successful ePaper yourself

Delete template?

Save as template?