Tough period for Jamaican economy - Melhado
published: Wednesday | November 27, 2002
OCHO RIOS, St. Ann
PRESIDENT OF Manufacturers Sigma Merchant Bank Peter Melhado is predicting a tough period for the Jamaican economy over the next couple of years.
He said although the financial sector had done very well since the fallout during the financial crisis of the 1990s, with existing companies becoming much stronger and more capitalised, everyone needs to prepare for challenging times ahead.
Mr. Melhado made this observation while speaking in an interview with The Gleaner at a luncheon which was hosted by the bank at Ruins Restaurant in Ocho Rios on Thursday November 21.
"We are going to have a flattening out as the government struggles with a very difficult fiscal situation," he said.
Mr. Melhado said however that despite the difficulties that lies ahead, the bank remains very optimistic about its future.
He disclosed that since the merger of Manufacturers Merchant Bank with Sigma Investment Management on July 1, 2001 to create Manufacturers Sigma Merchant Bank, the new entity has been enjoying steady growth in most areas of operation.
Mr. Melhado pointed out that prior to the merger both entities combined had performer earnings of about $220 million and that in the first year of the merger they recorded $350 million in profits.
He said this year Manufacturers Sigma Merchant Bank is on course to make over $400 million in profit. "So we feel we have had a steady appreciation in profits and we reinvest most of those profits to ensure our financial stability.
With capital amounting to over $1.2 billion, the company's core business included investment management, which at the end of October this year boasted a portfolio of approximately $27 billion in clients fund.
The company is also one of the largest players in the foreign exchange business and unit trust services, a leading trader in debts securities and is also involved in corporate banking, private banking, credit services as well as in the business of motor vehicle fleet management.
The Manufacturers Sigma Merchant Bank president said the climate at this time does not argue for any new product on the market and that what the bank is now trying to do is to appraise its clients of the value of equity investing with focus on fixed income investing.
