Sabrina Gordon, Business Reporter

Keith Duncan, chief executive officer of Jamaica Market Brokers. JMMB is creating three new branches in Montego Bay, Mandeville and Liguanea to accommodate its growing clientele. - File

Jamaica Money Market Brokers Limited has closed down its Tropical Plaza branch, opting not to renew lease but offering clients within the Half-Way Tree belt the option of doing business at a kiosk set up at a Courts Jamaica store.

The branch's lock down comes six months ahead of the opening of a new branch in Liguanea, St. Andrew.

JMMB has invested in property there, and is in the process of setting up operation, but has advised Wednesday Business that the branch will not open before next April.

"The contract on the property expired and given that plans are afoot to open a new branch in Liguanea we did not see it fit to renew the leasing arrangement," said Marguerite Cremin, marketing manager of JMMB.

Land purchase

The money market firm, which has $102.9 billion in assets under management, has already purchased land located at the intersection of Hope Road and Old Hope Road, almost opposite the Sovereign Centre, but did not disclose the investment being made in the branch, saying the design and costings are being finalised.

Cremin said that JMMB is also building bigger branches in Montego Bay and Mandeville to accommodate growing clientele in those two urban centres.

"We already have branches there ," she said, referring to the two locations. "However as our business requirements and client base grows we need to relocate to larger premises," she told Wednesday Business.

The island's securities firms have a combined $434 million in funds under management, putting JMMB's share at about 24 per cent.

The company's growth push follows marked depression in its profits, which last year dropped from $1.6 billion to $1 billion at March 2007.

The company's first quarter profits indicate a continuation of the trend, dropping to $231 million in June or 16 cents per share, from the $323 million or 22 cents per share recorded in the 2006 quarter.

Formal launch

The opening of the Liguanea branch comes behind their formal launch into the Dominican Republic on Wednesday, October 25, having bought 80 per cent controlling interest in BDI America.

The sale agreement was executed in September. The operation is headed by Guillermo Arancibia who leads a team of eight.

JMMB says it plans to replicate in the Dominican Republic the development of a secondary securities market as it did in Jamaica, offering clients rates of 25 per cent to 50 per cent on local currency investments.

The secondary market in the DR is said to be in its development phase and operates with no formal structure in place.

"Our intention is to leverage the expertise and experience that we have gained in our other markets, combine it with our local partner knowledge to deliver a real value proposition to the people and companies who wish to invest in the Dominican Republic or indeed overseas," said Keith Duncan, group chief executive officer.

"We have achieved success in Trinidad & Tobago and Barbados and we are convinced that there is enormous potential here in the Dominican Republic," said Duncan.

JMMB's client base has grown to more than 100,000 customers with its regional forays.

Earlier this year, Duncan also disclosed plans to enter the Spanish speaking territory of Costa Rica saying it would follow execution of the Dominican Republic deal.

In the meantime, the company is making plans locally to enter commercial banking, and is currently adding a credit department to structure financing deals.

New branch

Its new Liguanea branch opens in April 2008.

Cremin said the company retreated from Tropical Plaza following a customer usage survey.

"What we realised, said Cremin, "is that the pattern was mainly for investment and disbursements and this need could be met with the installation of the ETM at the Courts location which is fully operational.

The company said it thought it more feasible to put up an automated or electronic telemachine, under agreement with Courts, rather than renew the leasing arrangement.

sabrina.gordon@gleanerjm.com