The Cayman Island subsidiary of Jamaica National Group returned a modest profit of KY$134,000 for 2019.
The profit came from the provision of mortgages and savings. JN Cayman is a principal source of financial support for the large Jamaican Diaspora community in the Cayman Islands.
JN Cayman reports that growth in deposits was restricted owning to its observance of the Building Society Law of Cayman, Section 19, which requires that there is a commensurate ratio between loans and deposits. Arising from this there was a depression in the deposit portfolio.
At the end of the financial year, JN Cayman had assets of KY$39 million with its mortgage portfolio totalling KY$1.75 million and deposits of KY$1.75 million.
JN Cayman is the only building society in the Cayman Islands. Its principal activities are the provision of mortgages and savings through regular savings accounts and fixed deposits.
Savings accounts are offered in US and KY dollars. In addition, the building society provides an online banking platform, JN Cayman LIVE to assist members to monitor their accounts and conduct various transactions online.
Heavy cost from correspondent banking withdrawal
Speaking at the JN’s annual general meeting last week Chief Executive Officer, Earl Jarrett reported that the correspondent banking crisis has significantly increased the cost of operations in Cayman, which rose by over 1,000 per cent over the past five years.
He pointed out that JN spent KY$2.1 million since it lost correspondent banking services in that market noting that while the cost from the withdrawal of correspondent banking relations was heavy, JN sought not to pass on the cost to its customers.