Despite the challenges presented by rising U.S. interest rates; a flat yield curve both locally and in the United States and the declining stock market, Capital & Credit Merchant Bank Ltd. (CCMB) will implement new income strategies through innovative products and services to current and potential customers.
This declaration was made by CCMB President Curtis Martin, at the Bank’s Annual General Meeting held in Kingston on Friday May 26, 2006.
Making his presentation to shareholders, Mr. Martin noted that “CCMB’s Income Strategy for 2006 will see an aggressive expansion of its Loan Portfolio through the introduction of new, high-yield, value-added products; changes to the Bank’s International Treasury strategy to include other sovereign and high-yield treasuries; and the expansion of its Retail Credit units by way of alliances with a number of product providers.”
The CCMB President added that the planned strategy will include the selective acquisition of higher-yielding assets, while managing the costs of obtaining funds, along with the growing of non-proprietary income streams.
In his presentation about Capital & Credit’s Corporate Outlook for 2006, Chairman and CEO of Capital & Credit Financial Group, Ryland T. Campbell, noted that the Organization is expected to implement its new core banking system by the end of the year. He said that once the system is in place, it will enhance customer service by facilitating straight-through processing and will serve as a platform for launching Capital & Credit’s Internet Banking and ABM services and be a spur for the continued expansion of branches in select locations.
Mr. Campbell noted that CCMB is entering a challenging period in its development. Comparing the institution to human growth stages, Mr. Campbell said “CCMB’s entry into its thirteenth year since its inception in January 1994 is like puberty, a period of change and discovery.” He cautioned shareholders not to “revel in our successes, significant as they are, but rather, let us prepare ourselves for the challenges that lie ahead, recognizing that the Jamaica in which Capital & Credit was started is not the same Jamaica that exists today.”
The Chairman declared that Capital & Credit is “firmly on the path of growth and development, notwithstanding the challenges posed by high interest rates in the United States and local issues such as the cement crisis.” He noted proudly that Capital & Credit has “prevailed in good times and bad times and we have no doubt that [it] will continue to grow and develop even in the midst of the difficulties that surround us.”
Mr. Campbell hinted at future overseas developments for the Organization noting that by the beginning of third quarter 2006 certain related company alliances with the Capital & Credit Financial Group will materialize, resulting in added value to the products and services of the Group.
For the financial year 2005, CCMB broke the billion-dollar profit barrier posting After-Tax Profit of J$1.16 billion – a 35% increase over the then-record J$865 million profit achieved in 2004.
The Capital & Credit Financial Network (CCFN) was also launched at the Annual General Meeting. The financial news network will be available on Capital & Credit’s website.
