By Dennise Williams, Staff Reporter 
Wehby (left) and Orane (right)
THE JULY 1 merger of Grace, Kennedy & Company Limited's (Grace) financial services division into the First Global Group (FGB) has resulted in the consolidated revenues leaping by 109 per cent from the September 2003 to September 2004 period.
In effect, the more efficient operation of the combined financial entities spanning securities broking to property management, has returned a significant performance in a few short months.
And the public has embraced the First Global brand in such a manner that Grace will be listing the company on the Jamaica Stock Exchange in the latter part of 2005. Additionally, executives at Grace stated that they would be listing the company on the Trinidad & Tobago along with the Barbados stock exchanges in 2007. Douglas Orane, chief executive officer of Grace stated that the regional listing is in keeping with their mandate "To satisfy the investment and financial service needs of Caribbean people."
TO OPEN NEW BRANCH
To further satisfy the needs of Jamaican people, FGB will open a branch in the Mandeville area before the end of 2005.
Additionally, sub-branches will be opened in the Manor Park area and in the Sovereign Plaza in the Liguanea area. Grace will also be upgrading their Montego Bay branch to give clients greater
comfort.
Don Wehby, chief financial officer of Grace and chief operating officer of the financial services division along with Mr. Orane and other First Global executives, outlined the success of the merger at First Global's client reception held at the Knutsford Court Hotel on December 1.
In phase one of the merger, occurring on April 1, Grace combined First Global Bank and George & Brandy Merchant Bank into First Global Bank now headed by Wayne Ray. Then on July 1, in phase two, Grace merged First Global Bank Securities, George & Brandy Securities, First Global Stockbroker, Grace, Kennedy Property Management, Grace Pension Management Limited and Jamaica International Insurance Company into First Global Financial Services (FGFS) and appointed Sandra Shirley to lead the company.
IMPRESSIVE RESULTS
According to Mr. Wehby, the "Results have been impressive." Indeed, during the September 2003 and September 2004 period, the numbers speak for themselves. FGB booked revenues of $1.8 billion, a 33 per cent increase, while FGFS booked revenues of $1.9 billion a whooping 465 per cent increase. Profit before tax for FGB was $444 million an impressive 98 per cent increase and FGFS earned $236 million in profits before taxes a massive 555 per cent increase.
OBJECTIVES MET
Mr. Wehby explained that the objectives of the merger have been met. "Last year we realised that we were not managing our financial division efficiently. So we set ourselves the task of strengthening the capital base of the bank for future growth and competitiveness; realising efficiency and cost savings; pooling the best talent from within the banking and investment division; realising efficiency and cost savings; enabling risk management to be more focused; improving customer service through expanded range of services and building the First Global brand as a strong Caribbean brand. From there, we will list the holding company, First Global Holdings, on the Jamaica Stock Exchange in 2005 to raise additional capital."
Additionally, FGFS intends to introduce five new mutual funds next year:
Money Market Fund
Fixed Income Fund
US$ Fixed Income Fund
Balanced Fund
Equity Fund.
