Dennise Williams, Staff Reporter
BUNTING
INVESTMENT BANKERS, Dehring Bunting & Golding (DB&G) will by year end open a branch in Port of Spain, Trinidad & Tobago (T&T) as part of their four pronged $40 million expansion drive.
Earlier this year, the company launched their suite of unit trust products in the twin island republic, however the company realised that a hands on approach would serve its interest better. But the company has contained the cost of its overseas ambitions by focusing on being, 'asset light as far as real estate and focusing on renting space.'
DB&G chairman, Peter Bunting told Wednesday Business that, "Currently our unit trust products are being marketed by Reliance Stock Brokers in T&T and it has been okay. But no one will take an interest in your business like you."
DB&G has secured rented offices in the PriceWaterHouseCoopers building in Port-of-Spain and has received a licence from the T&T Securities Commission to operate as a securities company (the same as securities dealer in Jamaica).
However, Mr. Bunting hastens to add that, "We always intended the relationship with Reliance to be transitional."
GREAT OPPORTUNITIES
And he sees great opportunities to be mined from the T&T branch. "T&T is the highest rated economy in the English speaking Caribbean. And we have seen where JMMB has had success in the wider Caribbean and we hope to do the same."
Mr. Bunting explains that Jamaican securities firms have a level of expertise unmatched and the model can be migrated elsewhere with ease.
And in order to ensure success of the T&T operations, Mr. Bunting says, "We have already employed a country manager and had her here in Jamaica in our offices to get familiarised with our operations." It is expected the costs of expansion (staff costs, furniture, fixtures, and leases) to be recouped by the second year of operations.
Back in Jamaica, the company will be moving into a "new, purpose built location in Portmore." The building will have two floors and be shared by another, yet unnamed, tenant.
Mr. Bunting explained the reason for the move from its current location at the Portmore Mall. "We have learned that our growth tends to outstrip anticipated needs so it is better to have capacity to expand."
Again, DB&G will keep their expansion cost in line as they have 10-year lease on the new property being built by the developer of Portmore Pines.
And Mr. Bunting expects profitability from the first year of operation as the Portmore Mall branch is currently profitable.
Additionally, the DB&G Merchant Bank located at 2 Holborn Road In St. Andrew will move its operations across the street to rented premises at 1 Holborn Road.
Mr. Bunting explained, "We have experienced over 100 per cent growth in loans and deposits and simply need more space to serve our clients. With the additional space, we can consider widening our range of services from loans, deposits and cambio."
And looking at having a global presence, DB&G will launch a full service online bank by September, "if all goes well."
Mr. Bunting said, "We do have certain elements of online banking where clients can view their portfolio, but we will carry that to another level through a secured system."
DB&G will have its Annual General Meeting to review the company's financial results and performance as at the year ended March 31, 2005 on Wednesday, August 10, 2005 at 4:00 p.m. at the Knutsford Court Hotel.
