KINGSTON, Jamaica – The JN Group, had a successful 2008/2009 financial year with assets reaching $107 Billion, says Jamaica National Building Society (JNBS) General Manager, Earl Jarrett.
Assets at Jamaica’s third largest financial institution regulated by the central bank increased by 18 percent, Mr. Jarrett stated, referring to the recently released audited results for the last financial year ended March 31. This was a gain of $16.2 billion.
“Our asset growth indicates the high level of confidence savers and investors have in the JN Group,” he stated. The main focus of the Group is to serve the interests of its member-owners and the wider Jamaican community.
General Manager, Earl Jarrett
The JN Group includes Jamaica National Building Society, a mutual building society, which is its main operating arm and the country’s largest building society. It also includes subsidiaries, such as JN Money Services Limited (remittance services), JN Fund Managers Limited (wealth and asset management), NEM Insurance Company (general insurance), JN Finance Limited (loans), JN Small Business Loans Limited (microfinance and small business lending), the National Building Society of Cayman, Management Control Systems Limited (information technology), Manufacturers Credit & Information Systems Limited (vehicle fleet management and lending), and the Jamaica Automobile Association.
The Group’s asset holdings were underpinned by capital and reserves of $18.5 billion. This represented a 5 percent growth over the previous year, or an absolute growth of $929 million.
Despite the macroeconomic environment, The Group had an impressive loan performance during the period, providing a total of $37.9 billion to borrowers, he pointed out. This was $6.6 billion more than in the year before, a growth of some 21 percent.
“Our members and clients rewarded us for our commitment to their financial success by giving us increased business and through their positive referrals,” Mr. Jarrett noted. “Jamaica National is founded on the principles of mutuality by providing the services to help people save and thereafter to secure their own homes. We are constantly reminded of our important historical role even as we celebrate our 135th year.”
Total savings grew by 18 percent to $64.5 billion, an increase of $11.2 billion. He declared that this savings performance was driven primarily by a focus on customer and member service quality, resulting in increased business from members and clients.
“There is a drive to ensure that our members are well advised and aware of the benefits of saving and doing business with the JNBS Group,” he pointed out. The focus on the customer is reflected in the outcome of research conducted by Johnson Research, which shows that during the year, members and customers were over 90% satisfied with JN’s service.
The JN Group pre-tax surplus totaled $1.8 billion, following a write-down of $559 million in equities during the year. This was a decline of $3.5 billion from the prior year where earnings had been boosted by the exceptional circumstances of the sale of Lascelles De Mercado Group shares.
“Despite the global economic downturn, our remittances have remained relatively stable,” Mr. Jarrett said. By industry standards, this was positive for the performance of the JN Money Services Limited, with its JN Money Transfer offering an expanded bill payment facility through the Jamaica Public Service customer service locations branded as the JN Money Shop Express.
An outstanding performance was shown by JN Small Business Loans Limited (JNSBL), which disbursed $1.7 billion in loans to the Small and Micro Enterprise (SME) sector. A big boost to this lending was the provision of funds by the Development Bank of Jamaica as a part of the Government’s economic stimulus package.
“Microfinance continues to do well, showing strong loan growth and a promise of increased demand as more Jamaicans are recognizing the benefits of operating their own business,” he said. Jamaica’s largest SME lender, JNSBL is seeking to identify new ways of providing capital for the business community to facilitate growth and employment in the economy.
The general insurance subsidiary, NEM Insurance Company, had pre-tax profits of $657 million, up 159 percent from the year before. The company’s performance was positively impacted by the fact that Jamaica was spared from a major natural disaster during the period under review. He said the company has invested in new technology and has begun to reap the benefits of operational efficiencies.
“The insurer’s balance sheet is very strong and we were able to meet the Minimum Assets Test requirements of the Financial Services Commission,” the General Manager said. The goal is to continue to improve on its service to broker customers and the insuring clients of the company.
“The JN Group remains committed to delivering strong results for our members and to continue to demonstrate to the country and the world that it is possible to provide excellence from the Caribbean in the area of Financial Services,” Mr. Jarrett stated.
