Line of Business Review Financial Services

With the divestment of Massy United Insurance Ltd. in May 2022, the Financial Services Line of Business consists of two highly strategic operations for the Group. Remittance Services are one of the main foreign exchange earners for the Group. Furthermore, Remittance Services provide strong returns on invested capital and have been a good source of growth for the Group. Massy Finance GFC is integrally linked to the Group’s Corporate Treasury operations and has tight linkages to the Motors & Machines Portfolio for automotive and industrial equipment financing for customers. Massy Finance GFC’s foreign exchange license permits the Group to purchase foreign currency from third parties which greatly assists the Group’s currency sourcing needs.

Remittance Services

Remittances remained strong in 2022 due to the US labour market recovery and sustained growth in real wages in the service sectors where most of the Latin American and Caribbean diaspora migrants are employed.

Remittance Division expanded its operations in St. Vincent and the Grenadines offering MoneyGram Money Transfer in January 2022, through three Massy Stores agent locations.

Remittance inflows increased into Guyana, Trinidad and Saint Lucia compared to 2021. As a result of the increased inflows, this division generated an increase of 8.4 percent in Foreign Exchange for sale to the Group and to the financial services sector in Guyana versus 2021.

The earnings per transaction represented a significant contributor of reported revenue growth of 6.3 percent and Profit After Tax growth of 3.1 percent compared to 2021.

Seventeen new agents were added across the region increasing our footprint to 110 agent locations throughout Trinidad, Guyana, Saint Lucia and St. Vincent. We have accelerated on our strategy of digitalisation to capitalise on our consumers’ growing comfort with digital technology through the implementation of a new Money Transfer digital enabled platform. We remain confident in the dedication and loyalty of our customers through innovative solutions and will continue to invest in digital platforms and customer experience initiatives.

Massy Finance GFC Ltd.

Financial Year 2022 saw Massy Finance GFC Ltd. (MFGFC) deliver creditable results as it continued its journey to transform its business to be a strategic enabler for the Group’s main Portfolios as well as a known market actor in the personal lending, capital market and investment service spaces. This transformation was underpinned by a strong focus on building capacity across the organisation as a platform and catalyst for significant growth.

At the start of the financial year, the Treasury & Investments Department was established in order to deepen the alignment between the Group Corporate Treasury and MFGFC given the broader strategic mandate from the Group. The Treasury and Investments Department will also serve as the engine of growth for MFGFC’s new strategic direction in the financial space. In March 2022, the Company obtained approval to be a BrokerDealer from the Trinidad and Tobago Securities & Exchange Commission thereby fully enabling its ability to play the bigger role envisioned for the Group, as well as kicking off its proprietary investment management business which saw very strong growth.

Following the capacity expansion in the funding, capital market and investment areas driven by the Treasury and Investments team, the MFGFC also entered into the digital lending space with the launch of its InstaLoan lending channel in partnership with a regional fintech firm. This also represented the first major step in the Company’s digital growth journey and was met with a very strong and positive market response. Further lending capacity was also availed in September with the approval of a Trade Finance Facility from one of the leading Multilateral Lending Agencies thereby positioning the Company to begin providing trade support to its existing and prospective clients.

Finally, and most critically, the Company sought to enhance its human capital capacity with the rolling out of a new Organisation Structure that included new Executive, Business Development and Support roles needed to deliver on its performance promise and strategic vision over the next 5-year horizon.