Victoria Mutual Building Society (VMBS) has achieved a record profit of $2.13 billion for the financial year ended December 31, 2019. This represents a 101 per cent increase when compared with the previous corresponding period.
Revenues for the period under review were also up by 12.5 per cent amounting to $9 billion. In comparison, total assets stood at $244.81 billion, a 17 per cent increase when compared with the corresponding prior period.
“Our financial performance in 2019 was very strong. We completed a highly successful year in many respects,” declared VMBS chief executive officer (CEO) and president Courtney Campbell. He spoke at the company’s 141st AGM, which was held at the Pegasus Hotel in Kingston last Friday.
Given current social distancing protocols, in-presence attendance was limited to 50 members while all other members and the media were able to participate via live-stream on Youtube and Zoom.
During the 2019 financial year, VMBS launched its 100 per cent mortgage financing solution, commercial auto loans, and created US equities trading for its wealth management customers.
It also acquired 30 per cent of the Barbados-based Fintech firm Carilend, expanded a number of wealth management branches, money transfer outlets, and deepened its real estate lending in the UK.
In addition, the number of active members increased by 7,600 to 323,545.
For the 2020 financial year, VMBS indicated that it will manage risks by further improving preparation for crisis management, continue to enhance business continuity planning with focus on IT recovery, and review operational risk areas including client service delivery, succession planning and capital expenditure.
In early February, VM Wealth’s clients’ information was unintentionally distributed. In response, Campbell indicated that it has since implemented measures to tighten information security. This includes restrictions on the dissemination of mass emails and the screening of emails as part of the data loss prevention mechanism.
The VMBS CEO stated that as a part of its COVID-19 response, the company has addressed the heightened demand for additional funds, provided moratoriums on existing loans and top-up loans, and increased online transaction limits.
“Clearly, COVID-19 will have a financial impact on the group. We expected to see reduced fee income and compressed net interest margins, credit losses and the need for greater liquidity. All of those will present a challenge but the good news is that we have done what is within our control. We have identified some cost-saving initiatives and have strengthened VM’s digital ecosystem to ensure that there is adequate support for team members working remotely.“