Milton Brady, managing director of FirstCaribbean International Bank, says he is going after eight per cent more of the market in 2007. - File

FirstCaribbean International Bank Jamaica cuts the ribbon on a new 6,000 square foot branch in Savanna-la-Mar, Westmoreland this week - one of three it will add to its network in 2007.

The bank is investing $400 million to build out its network as it moves to secure another eight per cent more of the local banking market.

The current spend is a premium on the US$20 million ($1.3 billion) of capital injection - funds the bank's parent company had raised in January 2006 - used to finance roll out of new products, including a mortgage competition run by its building society.

"The key thing is trying to increase our network," FCIB managing director Milton Brady told Wednesday Business.

FCIB, the island's fourth largest bank, already has 11 branches across Jamaica.

Alongside the new addition to Sav-la-Mar, the bank has acquired a US$1.2 million property in Liguanea - formerly the home of a Popeye's fast food outlet - for a branch that will open in June or July.

The property's purchase was finalised Monday of this week, said Brady, but he refused to confirm the sale price.

The third branch is to be opened in Portmore but the search for a location continues.

Brady told Wednesday Business that his expansion plans were informed by a series of reviews and economic forecasts.

"I came at the beginning of 2005 to increase the bank's standing in the market," he said.

Market growth

Noting that FirstCaribbean grew its loan portfolio in 2005 by 47 per cent to $3.5 billion and 77 per cent in 2006 to $8.5 billion, the bank's CEO said he was already five per cent ahead of the 15 per cent growth in the market.

"We expect the similar growth in the high double digit figures as we try to increase our market share in the region by about 15 to 20 per cent," he added, referring to the effects of the expansion.

Mr. Brady said under his stewardship (which began at the beginning of 2005), "We started at five per cent, now we are at 12 per cent and we hope to grow by 20 per cent." He said the local industry is growing by 15 per cent.

The Savanna-la-mar branch, which will operate from leased space, is expected to employ 10 persons.

"Typically, we prefer to lease except in strategic location where we will purchase."

Brady said the expansion plan includes 12 ABMs to be placed in major towns.

susan.gordon@gleanerjm.com