2 jamaica money market brokers limited annual report ... - Jmmb.com

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CARIBBEAN MONEY MARKET BROKERS LIMITEDIn 2000, JMMB embarked on a program of diversification by entering theTrinidad & Tobago market through a joint venture in Caribbean MoneyMarket Brokers Limited (CMMB). This strategy of diversification haspaid-off handsomely as CMMB has grown to be a major contributor to theoverall success of JMMB.CMMB’s performance CMMB experienced another very good financialyear, expanding its asset base to over TT$5 billion from TT$2.9 billionlast year. The net profit for CMMB more than doubled to TT$112 millionfrom TT$52 million.The level of net interest income grew by more than 62% to TT$81 million.Gains from trading in investment securities also increased by over 37%, toTT$50.4 million.The net result of this growth in assets and effective trading strategies was asignificant 47.8% increase in the level of operating income to TT$136.9million from TT$92.6 million a year earlier.Despite the Company’s significant expansion, the level of operating expensesincreased only by 35.5% to TT$33.4 million as compared to theincrease in operating income. Consequently, this translated into a 116.4%increase in the level of profit after tax to TT$111.9 million.The growth in the bottom-line was further reflected in the level of shareholder’sequity which increased by 58.2% to TT$209.8 million.In less than four years, CMMB has emerged as a pioneer in the regionalfinancial services landscape, enhancing the awareness and sophisticationof the capital markets throughout the Caribbean. We expect CMMB tocontinue to forge ahead in the other territories in the Eastern Caribbeanover the next few years.Ram Ramesh,Managing Director, CMMBtrinidad and tobago economic review Trinidad and Tobago’seconomy recorded its tenth consecutive year of growth, again driven by theenergy sector through higher production of crude oil and Liquefied NaturalGas (LNG). However, the performance of the non-energy sector wasweak, and this appeared to have affected the pace of job creation. Headlineinflation was low, but the measure of core inflation indicated a build up inunderlying price pressures.The central government achieved a much better than anticipated fiscal outturn in 2002-03, partly as a result of higher than budgeted oil prices. Atthe end of March 2004, gross international reserves climbed to US$2.2billion, representing a cover of more than 6 months’ prospective imports.16 JAMAICA MONEY MARKET BROKERS LIMITED ANNUAL REPORT 2004
Throughout most of 2003-04, excessive liquidityin the financial markets exerted downward pressureon interest rates. The Central Bank lowered the cashreserve requirement for banks from 18% to 14% in October 2003. Theseactions reinforced the low interest rate environment as reflected in thesharp fall of 200 basis points in the prime lending rate to 9.5%. The stockmarket evidenced its best performance in five years on the strength of lowerinterest rates and good performances by the listed companies.CMMB Securities Limited Originally starting out as the equities divisionof Caribbean Money Market Brokers Ltd., CMMB Securities officiallybegan trading on the floor of the Trinidad & Tobago Stock Exchange(TTSE) on April 12, 2002, with a share capital of TT$5 million and amission to become an established name in the community with an outstandingreputation for service, excellence and knowledge of the marketsin which we operate. The initial strategic plan forecasted projections ofeight per cent (8%) market share by March 2003, sixteen percent (16%) byMarch 2004, going on to become the number one brokerage house on theTTSE by year-end 2005.For the year ended March 31, 2003, CMMB Securities actually recordedrevenues of TT$3.7 million and after-tax profits of TT$1.7 million,garnering a 15.1% market share in the process. Shareholders’ equity stoodat TT$6.8 million. In 2003, price levels as measured by the TTSE’sComposite Index increased by 27.2%, compared to the 25.6% increase in2002. In the first quarter of 2004, the Composite Index leapt a further21%.“For the year endedMarch 31, 2004,CMMB Securitiesgenerated revenuesof TT$7.4 million,recording netprofits after tax ofTT$3.6 million whichis an increase of111% over last year.”For the year ended March 31, 2004, CMMB Securities generated revenuesof TT$7.4 million, recording net profits after tax of TT$3.6 millionwhich is an increase of 111% over last year. Shareholders’ equity increasedto TT$10.4 million. However, our market share dropped slightly to 14%;albeit on a significantly larger market turnover. The total value of stockmarket transactions from April 1, 2002 to March 31, 2003 was TT$1.9billion, while the comparative figure for 2003-04 was TT$5.0 billion,representing a 163% increase.JAMAICA MONEY MARKET BROKERS LIMITED ANNUAL REPORT 2004 17
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Page 4 and 5: NOTICE IS HEREBY GIVEN THAT the Ann
Page 6 and 7: TEN-YEAR STATISTICAL REVIEW13 month
Page 8 and 9: DIRECTORS’ REPORTThe Directors ar
Page 10 and 11: MANAGEMENT’S DISCUSSION AND ANALY
Page 18 and 19: RISK MANAGEMENTManaging the Financi
Page 20 and 21: BUSINESS ENVIRONMENTDuring fiscal 2
Page 22 and 23: BOARD OF DIRECTORSNoel A. Lyon, phd
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Page 26 and 27: Horace, Yolanda,Sasha, Teverly,Lorn
Page 28 and 29: STOCKHOLDINGS10 LARGEST STOCKHOLDER
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