2 weeks ago
5
Following a period of reorganisation, VM Group Limited is back in the black and is aiming to maintain that trajectory by wrangling its spending.
The financial institution, which holds large private mortgage bank VM Building Society Limited and other holdings, spun from a loss of $375 million in 2023 to profit of $823 million.
The group’s operating income spiked by 40 per cent in 2024, Chief Financial Officer Frederick Williams reported to the annual general meeting last week.
The core components of operating revenue were net interest income, which grew by 10 per cent, and fees and commissions, up 22 per cent, he said.
VM Group’s capital base remains strong, and continues to meet all its regulatory capital adequacy requirements, Williams noted, but he also reported that the company’s leadership had taken note of the large operating expenses incurred during the year.
Main areas of concern
“This is one of the main areas of concern for us as a group. Therefore, greater focus will be placed on reducing operating costs while supporting the strategic growth initiatives,” Williams said.
The group’s expenses were made up of $6.4 billion for staff costs; impairment charges of $1.2 billion; depreciation charges of $1.1 billion; and $6.1 billion of other expenses, he reported.
Williams said going forward, the company intends to carve down its ratio of cost to operating income, which stood at 88.5 per cent.
Through its subsidiaries and associates, VM Group offers services in six countries outside of Jamaica. Its main operating entities include VM Building Society, currently the larger of only two private mortgage banks operating in Jamaica; VM Investments Limited, which is publicly listed on the stock market; VM Pensions; and general insurance associate BCIC.
“No one knows real estate or creating wealth through real estate like VM,” said VM Group President & CEO Courtney Campbell.
“This group is transforming. We’re not the same group that we were five years ago or 10 years ago. So we have introduced new products and services, diversified our range of products and services,” said Campbell. “We have implemented a digital transformation strategy,” he said,.
VM Group officially rebranded and reorganised in November 2021. This rebranding was part of a larger five-year transformation programme. The reorganisation also involved the establishment of a new holding company, VM Financial Group Limited, which was formally incorporated on February 1, 2023. This restructuring separated financial and non-financial companies within the group, ensuring compliance with the Banking Services Act.
Campbell said that despite external headwinds, VM Group has remained focused on delivering value for its members, while accelerating strategic growth priorities.
“We are seeing the tangible results of our efforts to modernise, grow our customer base, and enhance our core business lines. These outcomes reflect a strong and resilient institution positioned to continue empowering Jamaicans at home and abroad,” Campbell said.
English (US) ·