Annual Report 2010-F - Access Financial Services

Transcription

Annual Report
2010
Table of Contents
Notice of Annual General Meeting
Company Performance Highlights
The Chairman's and CEO's Statement to shareholders
The Board of Directors
Corporate Governance
Corporate Data
The Team
Management Discussion and Analysis
Pictorial
Making our customers happy
Striving for Excellence: Credit Officer of the year
Credit Branch of the year
Money Services Branch of the year
Reaching out: Community Relations
Disclosure of Shareholdings
Auditors' Report
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Shareholders' Equity
Statement of Cash Flows
Notes to the Financial Statements
Proxy
01
03
07
09
11
13
16
25
31
32
33
34
35
37
39
40
42
43
44
45
46
71
Dated this 9th day of May, 2011
NEED A SMALL LOAN?2010
A
Same Day LOAN APPROVAL
Same day DISBURSEMENT
INTEREST RATES
LOWER INT
PAYMENT
DEDUCTION
P
PA
AYMENT via SSALARY
A
COLLATERAL
NEEDED....
No COLLATE
A
S
.
ACCESS
FINAN
FINA
NCIAL SERVICES LTD.
1-888-GET-ACCESS
1
(1-888-438-2223)
“All The Loan Services
You Need Under One Roof...”
www.accessfinanceonline.com
w
ACCESS
FINANCIAL SERVICES LTD.
For the year ended
ende Decemberr 3
31,, 2
2010
0
03
Annual Report
2010
For the year ended December 31, 2010
0
20,000
40,000
60,000
80,000
J$000’s
04
100,000 120,000 140,000 160,000
ACCESS
Performance
Six Year Performance
Highlights
As at 31 December 2010
Year Ended
31/12/10
J$000's
377,901
Year Ended
31/12/09
J$000's
294,924
Year Ended
31/12/08
J$000's
220,225
Year Ended
31/12/07
J$000's
132,579
9 months
31/12/06
J$000's
62,851
Year Ended
31/03/06
J$000's
53,892
Year Ended
31/12/05
J$000's
31,568
Net Interest Income
356,854
261,168
192,003
121,019
59,407
51,211
30,200
Net Trading Income
375,086
266,902
194,427
123,009
60,514
52,352
31,249
Operating Expenses
271,100
220,291
166,697
82,608
45,289
30,096
25,091
Profit Before Taxation
147,206
84,749
51,153
46,155
15,583
24,182
10,302
-
(18,750)
(18,279)
(13,435)
(6,208)
(7,002)
(3,539)
Profit For The year
Year
147,206
65,999
32,874
32,720
9,375
17,180
6,763
Total Assets
658,292
608,480
445,227
270,348
162,220
131,595
57,700
Total Liabilities
251,017
334,686
330,345
188,340
112,933
93,221
36,506
Shareholders'
Shareholders’ Equity
407,275
273,794
114,882
82,008
49,287
38,374
21,194
Weighted Average Number Of
Issued Shares
274,510
274,510
274,510
274,510
274,510
274,510
274,510
Earnings Per Share
$0.54
$0.24
$0.12
$0.12
$0.03
$0.06
$0.02
Return On Equity
36%
24%
29%
40%
19%
45%
32%
Interest Income From
From Loans
Taxation
05
ACCESS
Access Financial Services Limited
Annual General Meeting
2010 Statement to Shareholders
Dear Fellow Shareholders,
2010 was a particularly challenging year for the financial industry as the macro environment was characterized
by declining interest rates as a result of the successful implementation of the Jamaica Debt Exchange
change Programme
(JDX) by the Government of Jamaica. Despite the challenging environment your Company, Access
ccess
Financial Services, recorded a 29% increase in total revenue which translated into a 74% increase
ease
in net profit before tax, and a 123% increase in net profit after tax and earnings per share. During
ring
the year the Company paid out $.50 per share in dividends to shareholders.
This performance can be attributed to the solid growth recorded in our core business and a
credible performance posted by the money services division.
Loan Portfolio Performance
Our retail credit division disbursed in excess of 12,000 loans valued at J$908m. Interest income
me from
loans increased to $378m which represents an increase of 28% when compared to 2009. All 133
es
branches through which our loan services are offered performed credibly with our new branches
meeting expectations.
The downturn in the economy has had an impact on some our credit customers and as a consequence,
quence,
we have been proactive in increasing the Company's allowance for credit losses by 15.5%.
Money Services Performance
Our money services division performed well during the year growing total payouts by 12% over
er 2009. This
Thhis
T
is performance
per
erfo
form
rman
mance
ce is
is to be
be compared
co
omp
mpar
ared
ed
to the overall industry which recorded total payout growth of 5.8%. Such a performance is commendable
mmendablee and
annd is a confirmation
con
onfi
firm
fi
mat
a io
ion
on that
thhat
at
customers are increasingly comfortable doing other money services associated with the Accesss Brand. T
To
Total
oottall iinc
income
ncom
omee fo
for
or tth
the
he mo
m
money
one
neey se
serv
service
rvi
rv
vic
ice
division for 2010 was $43m representing a 13% increase when compared to 2009.
Marketing
In 2010, Access Financial Services increased its investment in marketing as we continue executing
uting ourr strategy
straatteg
egy
gy tto bbuild
uildd the “Acce
“Access”
Acce
ceess
ces
ss”
brand among our core customers. During the year, Access launched the marketing campaign dubbed
ubbedd “Acc
“Access Gr
G
Granted”
rante
ted”
ted
d” tea
teaming uup
p with
wiith
t
small business owner and entertainer Michelle Downer a.k.a D’Angel. Additional marketing initiatives
atives
ives suc
suchh as the ““Friends
Friends rrefer
Fr
e Friends”
end
ndss”
s”
marketing campaign was carried over from the previous year.
Throughout the year, Access maintained a strong brand presence by participating in exhibitionss aand
nd semina
sem
semin
seminars
arss suc
su
such
uch as Ja
Jam
Jamai
Jamaica
amaiccaa B
Bu
Business
ussiness
usi
ess
Development Corporation Small Business Exposition and Denbigh 2010. Our customers were automatically eligible to enter the “Access
Draw for Cash” Christmas promotion which held its grand prize draw on January 7, 2011. Customers
stomers participated by dropping entry
vedd exten
extensive
nsive support
ppo from customers.
cuustome
forms into drop boxes at all Access locations. The promotion was very well received and received
07
Annual Report
2010
Human Resources
During the year we continued to ensure that we have the right persons in the right place doing
ng the right
activity with the right resources. Accordingly, we strengthened the Company's senior management
gement team
with the filling of the Human Resources Manager and Operations Manager positions. Our Human
Resources Department continues to focus on motivating our team members as well as
implementing several qualitative initiatives.
Recognizing that the macro environment is constantly changing, we continue to focus on
improving our human resources processes.
2011 Strategic Outlook
Going forward we will position the Company to efficiently and effectively expand its markett
share of the overall micro and small business market as well as maximizing synergies
between business units. We will continue to strengthen our internal systems and procedures
as well as our human resources capabilities. We will increase the Company's operating efficiency
ency
by reducing our transaction operating cost while executing customer focused initiatives. Emphasis
phasis
will also be placed on developing an organizational culture where adherence to the Company’s
y’s core
values of teamwork, customer service and efficiency are promoted and rewarded.
We would like to take this opportunity to express our heartfelt gratitude and appreciation to our
valuable Access team members for their hard work and dedication displayed throughout the 2010 fisc
fiscal
cal ye
yyear.
eaarr.
To our existing customers, we express our thanks and appreciation for your continued support.
rt. T
To our nne
new
ew cu
ew
cust
customers,
stom
st
mer
ers,
s, w
wee look
loook
ok fforward
orward to
or
building our relationship with you and helping you to achieve your financial goals.
To our shareholders, we continue to focus on building shareholder value by being resolute and
nd forever ooptimistic
ptim
pt
imis
isti
is
ticc in
ti
in tac
tackling
ck
kllin
lin
i g what
wh
whatever
haattev
ever
ommitment tto
o ma
make
ke Ac
ccess F
innanci
cial
ci
al S
ervices
challenges are thrown our way knowing full well that we have the team, the talent and the commitment
Access
Financial
Services
the preferred micro financial service provider in Jamaica.
Brian Goldson
Chairman
Marcus
arcus James
Jam
Chief Executive Officer
08
ACCESS
Board of Directors
(From left to right)
Alexander Johnson (Non Executive Director)
Brian Goldson (Non Executive Chairman)
Gary Peart (Non Executive Director)
Marcus James (Chief Executive Officer)
Absent: Christopher Berry (Non Executive Director)
09
Board Composition
The Company's Board of Directors is comprised of the following individuals:
Brian Goldson
Non – Executive Chairman
Brian Goldson was appointed as non-executive Chairman on May 08, 2007.
He holds a Bachelor of Science (B.Sc.) degree in Investment Finance from the University of New Orleans and a Master of
Business Administration (M.B.A.) degree from Georgia State University. Mr. Goldson currently serves as non-executive
chairman of the Company and non-executive chairman of the Postal Corporation of Jamaica
Marcus James (Founder)
Marcus James is the Founder and Chief Executive Officer of the Company.
He has served as a Director since September 2000. Mr. James holds a Master of Business Administration (M.B.A.)
degree (with Distinction) in Banking and Finance from the University of the West Indies and a Bachelor of Business
Administration (B.B.A.) degree from Western Carolina University. Mr. James currently serves on the Board of Directors
of the British Caribbean Insurance Company Limited, the Airports Authority of Jamaica Limited and the Airports Authority
of Jamaica Limited Pension Fund, where he holds the position of Chairman of the Trustees of the Pension Committee.
Christopher Berry
Non – Executive Director
Christopher Berry was appointed as a Non-Executive Director on 28 September 2006.
Mr. Berry is the Chairman of Mayberry Investments Limited. Mr. Berry holds a Bachelor of Science (B.Sc.) degree in
Industrial Engineering from Georgia Institute of Technology. Mr. Berry also sits on the boards of other local companies notably, Air Jamaica Limited, where he is a member of the Divestment Committee acting on behalf of the Government
of Jamaica.
Gary Peart
Non – Executive Director and Corporate Secretary
Mr. Peart was appointed a non-executive Director of the Company on 28 September 2006.
Mr. Peart holds a Bachelor of Science (B.Sc.) degree in Economics from the University of the West Indies and an Executive
Master of Business Administration (E.M.B.A.) degree from Florida International University. Mr. Peart is the Chief Executive
Officer of Mayberry Investments Limited and sits on the Steering Committee for the Junior Market of the Jamaica Stock
Exchange and serves as Mr. Berry's alternate on the board of the Jamaica Stock Exchange.
Alexander Johnson
Non – Executive Director
Mr. Johnson was appointed a non-executive Director of the Company on 24 October 2008.
He holds a Bachelor of Science (B.Sc.) degree in Management Studies from the University of the West Indies and Master of
Business Administration (M.B.A.) from the University of New Orleans. Mr. Johnson is a director and Operations Manager
at G4S Jamaica Limited (formerly Wackenhut Jamaica Limited)
ACCESS
CORPORATE GOVERNANCE
The Board of Directors of Access Financial Services Limited has full responsibility and oversight for directing
the operations of the Company. The Board ensures that the Company operates within a framework of prudent and
effective controls and that the Company is fully compliant with all applicable laws and regulatory requirements.
Board Responsibilities
Specifically the Board of Directors is charged with:
. Establishing and monitoring the Company's strategic goals
. Supporting and reviewing the performance of the Chief Executive Officer
. Ensuring the availability of adequate financial and human resources
. Approving annual budgets
. Reviewing and approving audited financial statements
. Ensuring that the obligations to the stakeholders are met
. Establishing committees of the board
Board of Directors Meetings held in 2010
During 2010 Access Financial Services Limited held five (5) meetings of the Board of Directors.
The table below indicates the attendance of each Director.
Director
Number of meetings attended
Brian Goldson
Marcus James
Gary Peart
Alexander Johnson
5
5
5
5
Christopher Berry
1
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Annual Report
2010
Committees of the Board
Compensation and Expenditure Committee
The Compensation and Expenditure Committee is tasked with overseeing the remuneration of directors, officers and
employees and general expenditure of the Company. This committee is comprised of three (3) members;
Christopher Berry (Chairman), Brian Goldson and Alexander Johnson.
Compensation and Expenditure Meetings held in 2010
During 2010 Access Financial Services Limited held one meeting of the Compensation and Expenditure Committee.
Director
Brian Goldson
1
1
Christopher Berry
Alexander Johnson
1
Audit and Compliance Committee
The Audit and Compliance Committee is charged with ensuring compliance with the Rules of the Junior Market,
financial reporting standards, internal audit controls and procedures and independence of auditors. The members
of this committee are; Brian Goldson (Chairman), Gary Peart and Alexander Johnson.
Audit and Compliance Committee Meetings held in 2010
During 2010 Access Financial Services Limited held one meeting of the Audit and Compliance Committee.
Director
Brian Goldson
1
1
1
Gary Peart
Alexander Johnson
12
ACCESS
Corporate Data
.
.
.
.
Board of Directors
Non-Executives
Brian A.L. Goldson B.Sc., M.B.A
Chairman
Alexander I. Johnson B.Sc. (Hons.), M.B.A.
Director
Christopher W. Berry B.Sc. (Hons.)
Director
Gary H. Peart B.Sc., M.B.A.
Director
Executive
. Marcus H. James B.Sc., M.B.A. (Hons.)
REGISTERED OFFICE
41b Half Way Tree Road
Kingston 5
Jamaica W. I.
REGISTER - TRANSFER AGENT
Jamaica Central Securities Depository Limited
40 Harbour Street
Kingston
COMPANY SECRETARY
Gary H. Peart
ATTORNEYS-AT-LAW
Patterson, Mair, Hamilton
BANKERS
RBTT Jamaica Limited
The Bank Of Nova Scotia Jamaica Limited
National Commercial Bank Jamaica Limited
AUDITORS
BDO
26 Beechwood Avenue
Kingston 5.
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Annual Report
2010
MANAGERS
Catherine
Thomas
Operations Manager
Head Office
MAAT, MICA
Catherine
Thomas
Operations
Manager
Senior Human
Resources
Head Office
MAAT,MICA
Tresia
Tresia
Beckford
Beckford
OfficerH R Officer
Senior
Head
Head Office
Office
B.Sc.
B.Sc.(Hons),
(Hons),FLMI
FLMI
Sarah
Williams
Chief Accountant
Accountant
Head Office
CA, B.Sc.
Novlette
Brown-Sang
Credit Manager
All Branches
A.Sc.
Kareen
Karene
Shim
Manager
Montego Bay
B.BA.
Angella
Lindsay-Brown
Supervisor
Browns Town
Carolyn
Plummer
Manager
Savannah-la-Mar
Savanna-la-mar
Aldria
Brown
Manager
Savanna-la-mar - WU
Savannah-la-Mar
Shevaun
Hart
Manager
Santa Cruz
A.Sc.
Sonia
Lopez
Manager
May Pen - WU
A.Sc.
Michelle
Nelson
Manager
Port Henderson -WU
Reginald
Hird
Manager
Portmore Pines
Tamara
Lindsay
Supervisor
May Pen
Keisha
Popley
Manager
Kingston
Mitchel
Henriques
Supervisor
Kingston
Dip. Bus. Ad.
Shevaun
Hart
Manager
Mandeville
A.Sc.
Aretha
Douglas
Regional Manager
Ocho Rios
B.BA., A.Sc.
Dianne
James-Powell
Regional Manager
Old Harbour & May
Pen
M.SA, B.Sc.
Metchell
Mechell
Clarke
Supervisor
Linstead
B.BA.
14
A.Sc.
Annual Report
2010
THE
TEAM
Senior Management
From left: Tresia Beckford (Senior Human Resources Officer),
Sarah Williams (Chief Accountant),
Marcus James (Chief Executive Officer),
Catherine Thomas (Operations Manager).
16
ESS
ACCESS
ACCOUNTING
From left:
Michael Collington
(Bearer),
Margaret Blackwood,
Sherene Reid,
Sarah Williams
(Chief Accountant),
Sashay Henry,
Sheryl Cameron-Oliver,
Terry-Ann Bisnaught,
Wayne Stephenson.
OPERATIONS
From left:
Catherine Thomas
(Operations Manager),
Anna-Kay Ellis,
Camara Stewart,
Danville Johnson
Melisa Daley,
Alsene Walcott,
Dane Hinds
17
Annual Report
2010
Marketing and
Business Development
From left:
Suzette Beckford,
Michelle Brown,
Lissa Harris.
Collections
From left:
Yardine Burke, Wilbert Wilson,
Baheerah Milwood, Tenille Martell,
Enola Gray, Chevanne Hunt.
I.T. & Audit
From left:
Rupert Pitter (Systems Administrator),
Ravhi Istrow (Internal Auditor),
Jhanoy Nicholson (System Administrator).
18
ACCESS
HR Assistant & Executive Assistant
From left:
Yanique Marshall (HR Assistant),
Arlene Pusey (Executive Assistant)
Kingston Credit Department
Seated front left:
Mitchel Henriques
(Branch and Collections Supervisor),
Keisha Popley (Branch Manager).
Standing from left:
Sofia Hinds,Carol Wallace,
Sherene Sinclair, Damion Richards,
Dian Lindsay, Shannique Wilmot,
Kamisha Miller.
Kingston Money Services
From left:
Delene Brown,
Shawneca Hamilton,
Jacqueline Barrett.
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Annual Report
2010
Port Henderson and
Portmore Pines Branch
From left:
Sabrina Nunes, Shelita Billings,
Reginald Hird (Regional Manager),
Opal Haughton, Karen Mcleod.
Portmore Money Services
From left:
Kadian Thomas, Nardia Denton,
Latoya Douglas, Kevon Blackwood,
Felicia Williams, Anautia Morgan Nathan,
Michelle Nelson (Branch Manager).
Spanish Town
From left:
Nessa Richards, Latoya Blair,
Colette Harris, Carla Howell.
20
ACCESS
Old Harbour
From left:
Jerome White, Patrice Mitchell,
Diane James-Powell (Regional Manager).
Linstead Branch
From left:
Claire Bryan,
Romone Morgan-Cameron,
Mechell Clarke (Branch Supervisor).
Brown’s Town Branch
From left:
Kedesha Lindsay,
Nadine Brown Hanniford,
Beverley Johnson,
Curdelecia Cole,
Angela Lindsay-Brown
(Branch Supervisor).
21
Annual Report
2010
Ocho Rios Branch
From left:
Claudia Grant-Morris,
Nickoy Brown,
Nickeisha Hobson – Campbell,
Aretha Douglas (Regional Manager).
May Pen Branch
Sitting from left:
Dianne James-Powell (Regional Manager),
Tamara Hooker-Lindsay (Branch Supervisor)
Standing from left:
Nafeesa Spence, Mark Edwards,
Natalie Oswald, Andrene Smickle.
May Pen Money Services
From left:
Lisan Dixon, Marclyn Evans,
Jamie Banton, Tara Rowe-Badson,
Lisa Walker, Sonia Lopez (Branch Manager)
22
ACCESS
Montego Bay Branch
From left:
Julane Daley,
Samantha Hutchinson,
Marisa Williams,
Karene Shim (Regional Manager).
Mandeville Branch
From left:
Brenda King,
Orenthia Williamson-Gray,
Cordel Cohen,
Vaughn White.
Santa Cruz Branch
From left:
Janice Hart-Griffiths,
Latoya Levy,
Tracy-Ann Bright ,
Shevaun Hart (Regional Manager)
23
Annual Report
2010
Savanna-la-mar Branch
From left:
Carolyn Plummer
(Branch Manager),
Deanolyn Crooks.
Savanna-la-mar
Money Services
Sitting:
Aldria Brown (Branch Manager)
Standing from left:
Thornia Davis, Jumana Chin,
Collette Ricketts, Venice Miller,
Lorraine Wright.
Savanna-la-mar
Money Services
Sitting:
Gillian Brown (Branch Supervisor)
Standing from left:
Simar Spence, Yanique Wilson,
Venecia Williams, Taniesha Dixon
24
ACCESS
Management Discussion
and Analysis
Company Activities
Access Financial Services Limited is a leading lender to Jamaica's micro enterprise sector. The Company provides loans for both
business and consumer purposes through its retail network comprised of 13 branches. The Company is also a licenced cambio
dealer and its money services division offers remittance, cambio, and bill payment services though 4 money services outlets.
Strategy
The Company's strategy is derived from it overarching goal of providing exceptional value its customers, team members and
shareholders. Our strategy is geared to offering exceptional customer service to our clients, through ongoing training and
support for our team members while operating in an efficient and effective manner.
We adjust our products and services in response to the changing realities of the environment within which we operate which
determine our customers financing needs. We also consistently review and improve our service delivery to our customers
through ongoing consultation with them and the modification of our operating policies and procedures. Our team members,
who interface daily with our customers, are provided with ongoing training and support to ensure their development and the
realization of their personal goals and objectives. Combining excellent customer service with efficient operations driven by
satisfied team members is the basis on which we seek to deliver above average returns to our shareholders.
Financial Results Overview
For the financial year ending 31 December 2010, Access Financial Services recorded net profit of $147.2mn an increase of 123%
when compared to the 2009 fiscal year. The increase in profitability was due primarily to increases in all income streams and an
improvement in the efficiency of Company operations. Correspondingly, earnings per share improved from $0.24 to $0.54.
Operating Income
Net interest income grew by 37% moving from $305mn to $418mn when compared to the prior year, and growth was reflected in
interest income on loans growing by 28%, investments 13%, income from money services 13%, and fee and commission income
217%. Growth in interest income was achieved through the implementation of an aggressive marketing campaign which
resulted in growth in loan disbursements.
25
Annual Report
2010
and Analysis (continued)
2010 Operating Income Composition
Operating Expenses
In 2010 operating expenses grew by 23% when compared to the prior year. This increase was driven by:
(i) Establishment of new branches during the year
(ii) Recruitment of new staff to fill senior management positions and positions created by the
opening of new branches.
(iii) In keeping with our continued drive to mitigate potential credit losses, provision for credit losses
grew by 15.5%, moving from $39.2mn recorded during 2009 to $45.3mn recorded during
the current year
(iv) Increase in utilities, rent, courier and collection costs
(v) Growth in depreciation and amortization charges in line with the expansion of our branch
network and upgrades made to the Company’s technology infrastructure.
26
ESS
ACCESS
Operating Expenses (J$’000)
Assets and Liabilities Analysis
As at December 31, 2010 the asset base of the Company was $658.3mn, representing an 8% or $49.8mn
increase over 2009. Asset growth which was fuelled primarily by increases in shareholders’ equity and
was reflected in loans and advances which grew by 4% to $475mn after allowance for impairment
losses, cash and cash equivalents grew by 68%, and fixed assets by 16%.
Total Liabilities declined by 25% to $251mn due primarily to the reduction in Directors’ loans and loans
from funding agencies.
Key Ratios
27
Annual Report
2010
Shareholders' Equity
Total Shareholders' equity grew to $407.3mn, 48% over the prior year, fuelled by an increase in retained earnings of $133.5mn.
The return on equity for the Company was 36% in December 2010 compared with 24% in December 2009.
Dividends and Shareholders' Return
The dividends paid in 2010 were $0.50 per share or $13.7mn which translated into a dividend payout ratio of 20%. Total
shareholder return which combines share price appreciation and dividends paid to the investor was 52% for the 2010 financial
year.
Risk Management
The Company's risk management framework was established to ensure that its risk taking activities are managed in accordance
with the Board's risk appetite and that there is an appropriate balance between risk and rewards in order to maximize
shareholder returns.
Our risk management process incorporates the following components;
(1) Oversight by Board of Directors and Senior Management
(2) Policies, procedures and limits
(3) Risk measuring, monitoring and management of information systems
(4) Internal controls and audits
These components are encompassed in a comprehensive risk management framework which ensures that the Company's
credit, market, liquidity and operational risks are appropriately monitored and managed.
Oversight by Board of Directors and Senior Management
The Board of Directors is responsible for ensuring that the Company is managed in conformity with established risk tolerance
limits. In order to meet this responsibility, the Board establishes appropriate committees such as the Audit and Compliance
Committee and management structures to ensure that the accountability for the risks has been established. The Board also
approves policies to address risks, allocate sufficient resources to addressing risks and react to identified risks by taking the
necessary steps to eliminate or mitigate the risks in accordance with its approved policies and strategies.
The Company's senior management team is responsible for developing and implementing procedures and practices that
translates the Board's goals, objectives and risk tolerances into operating standards that are well understood by the Company's
personnel and that are consistent with the Board's intent. The senior management team also establishes effective internal
controls over the various risk management processes and ensures adherence to the lines of authorities and responsibilities that
the Board has established for measuring, managing and reporting risk exposures.
28
ESS
ACCESS
Policies, Procedures and Limits
The senior management team develops and implements policies and procedures that specify how the various risks will be
monitored. Prior to implementation, the policies and procedures are approved by the Board in order to ensure that they are
consistent with the Board's risk management philosophy and Company's business strategies.
Risk measurement, monitoring and management information systems
The Company's risk management framework includes the preparation of reports which summarizes risk exposures,
demonstrates compliance with all risk limits, assess results of strategies and communicate risk and return to capital. These
reports are prepared monthly by the Finance, Operations and Human Resources departments and reviewed by the Board of
Directors on a monthly basis.
Internal controls and audits
The Company's senior management team is responsible for implementing properly structured internal controls that safeguard
Company assets, promote effective operations, foster reliable financial and regulatory reporting and ensure compliance with
laws, regulations and internal policies. Quarterly audits are conducted by our internal audit department which reports to the
audit committee while annual audits are conducted by the Company's external auditors.
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to
incur a financial loss.
The Company monitors its credit risk by carefully evaluating applicants for credit before disbursement and by reviewing its loan
portfolio with a view to controlling its credit risk. Collateral is obtained for business loans and certain personal loans are
collected through salary deductions by employers of the borrowers. Cash and cash equivalents, and securities purchased
under resale agreements are held with reputable, licensed financial institutions, which are considered to present minimal risk
of default.
Liquidity Risk
Liquidity risk, also referred to as funding risk, is the risk that the Company will encounter difficulty in raising funds to meet
commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at
close to its fair value. The Company manages its liquidity risk by the preparation and analysis of daily cash flow reports which
outlines current and future obligations and the cash resources available to meet these resources.
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Annual Report
2010
Market Risk
Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and equity prices will affect
the value of the Company's assets, the amount of its liabilities and/or the Company's income. Market risk arises from
fluctuations in the value of liabilities and the value of investments held. While the Company is exposed to market risk on certain
of its financial assets, it is not deemed to be a significant exposure. There is also no significant exposure to foreign currency risk
or equity price risk.
Interest Rate Risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Interest
rate risk is affected where there is a mismatch between interest earning assets and interest bearing liabilities, which are subject
to interest rate adjustment within a specified period. The Company manages this risk by maintaining a portfolio of interest
earning assets that exceeds interest bearing liabilities and ensuring appropriate matching of the maturity profile of interest
bearing assets and liabilities.
Operational Risk
Operational risk is the risk of loss, due to external events, human error, the inadequacy or failure of processes, procedures,
systems or controls. In order to mitigate this risk, the Company has polices, standards, internal controls, internal and external
audits which ensures that operational risk is appropriately identified, managed and controlled.
30
ACCESS
Pictorial
Administrative Assistant Sherene Sinclair
goes through the product brochure
with an interested customer.
The Kingston Branch poses for the
10th Anniversary
Supplement Photograph.
Branch Managers and Supervisors listen
keenly to Pierre Markowski, Consultant
as he discusses product development and
business strategies.
31
Annual Report
2010
“MAKING OUR
CUSTOMERS HAPPY”
(Access Draw for Cash winners)
From left; Business Development Officer, Michelle Brown,
1st prize winner Denise Kelly, Small Business owner,
“Michelle Downer”, AKA D’Angel,
3rd prize winner Melvina Williams,
2nd prize winner Hortence Harrison and Business Development Officer Lissa Harris.
A
CCESS
C
A
CCESS
C
Three lucky customers flash smiles as they display cheques received at the drawing of the “Access Draw for Cash” promotion.
First prize winner Denise Kelly conducted the required number of transactions at our Port Henderson money services
location. Upon being notified of her prize Denise stated that she feels great and that the cash would come in handy.
She was also excited that Access had decided to undertake the promotion.
Second prize winner Hortence Harrison received a MicroBiz loan from our Browns Town branch. Upon receiving her cheque,
Ms. Harrison exclaimed “Thank You Father!” She explained that while feeling overwhelmed and happy she encourages
persons to visit Access as the friendly staff provides exceptional service to their customers.
Third prize winner Melvina Williams a business loan customer from the May Pen branch stated “I'm feeling good and it is a
good start for the New Year; Access has made my day.”
32
ESS
ACCESS
STRIVING FOR EXCELLENCE
Credit Officer of the year
As Julane Daley reaches for the stars, it is evident by her height
and achievements that she is almost there. Julane started working
with the Company in February 2004 as an Administrative
Assistant with our Montego Bay Branch. In October 2004 she was
promoted to Business Loan Officer where she states that with the
promotion “My goals were to execute my duties to the best of my
ability by meeting the needs of my clients, whilst working hard
Julane Daley being presented with a plaque for her achievements
towards being recognized as the best Credit Officer within the
as Credit Officer throughout 2010 by CEO Marcus James.
organization.”
She also went on to state that “I always try to build a great professional relationship with my clients by ensuring that
their financial needs are always met. At the same time I have to strike a balance by being firm regarding the risk of
delinquency and still maintain a good relationship with my clients which results in customer loyalty.”
After being awarded with the Credit Officer of the year prize, she stated “I was elated to have earned the title of 2010 Credit
Officer of the year. It has always been one of my goals and was a great achievement for me. Hard work and dedication did pay off!” .
33
Annual Report
2010
CREDIT BRANCH OF THE YEAR
From left: Julane Daley (Business Loan Officer), Marisa Williams (Personal Loan Officer),
Samantha Hutchinson (Administrative Assistant),
Karene Shim (Regional Manager) and Marcus James C.E.O.
The 2010 Credit Branch of the year was awarded to the Montego Bay Branch managed by Miss
Karene Shim. Karene states “My Branch worked extremely hard to reach our targets, meet our customer's
needs and maintain an excellent business relationship with our customers. It is an honour to be recognized as
Credit Branch of the year and we will continue to serve Access and our customers.”
Miss Shim was also awarded with Branch Manager of the year and states “I am happy to be rewarded
with both awards. The Montego Bay team worked very hard and such recognition is well deserved. We deem it a
great accomplishment and we will work even harder, and look forward to achieving these awards and more in the
coming year. Now that we have the coveted title, we will not allow any other branch to reign on our parade.”
34
ESS
ACCESS
MONEY SERVICES BRANCH OF THE YEAR
Money Services Division
From left: Thorna Davis, Collette Ricketts, Loraine Wright,
Sofia Grant, Venese Miller, Marcus James.
Our Savanna-la-mar Money Services Division was awarded with Money Services Branch of the year.
In addition, other branches received recognition at the Grace Kennedy Money Services Limited
annual Customer Service Awards Luncheon held on March 13, 2011.
The Division walked away with the following awards:
Portmore Money Services - International Phone Yard (IPY)
1st Place – Customer Service Point of Sale (mystery shoppers)
1st Place – Medium Category Best Performance - Bill Express
Top 50 Outstanding Frontline Associates (FLA) Category
May Pen Money Services Western Union - Tara Rowe and
Lisan Dixon.
Savanna-la-mar Money Services – Thornia Davis.
Top 30 Outstanding Supervisors Category
Portmore Money Services - Michelle Nelson
May Pen Money Services - Sonia Lopez
Our May Pen Money Services Western Union tied for 3rd Place
for the overall Western Union with 5,000 transactions per month.
35
Annual Report
2010
36
ESS
ACCESS
Reaching out:
Community Relations
Labour Day 2010
Make shift house previously occupied by the elderly resident
Jerome White and Carla-Jay Howell of the Spanish Town Branch assisting
with the painting of the newly constructed house.
Despite the civil unrest on Labour Day May 24, 2010, individuals in the Burke Road area of Old Harbour
St. Catherine, made their way out to continue efforts in building a new home for an elderly resident of
the area. We teamed up with the Care Taker for the area to provide building materials and workmanship
for the building of the new house.
Spanish Town High School Graduation
We sponsored the Spanish Town High School 2010
graduation held on July 7, 2010. The sponsorship
allowed 5 students who excelled in business subject
areas to receive awards for excellence. Credit Officer
from the Spanish Town Branch Carla-Jay Howell
attended the graduation to personally award the
students with their trophies and also provide a word
of encouragement.
37
Carla-Jay Howell Credit Officer Spanish Town Branch Presenting
an award to a member of the Spanish Town High School
Graduating Class of 2010
Annual Report
2010
Jamaica Fire Brigade Manchester Division
Neville Bennett Deputy Superintendent and Lissa Harris,
Business Development Officer.
Paulette Needham, Secretary Jamaica Fire Brigade,
Rupert Pitter Systems Administrator and Lissa Harris.
The Jamaica Fire Brigade Manchester Division has embarked on a self help program aimed at improving their
work facilities which will enable them to provide better service to the communities they serve. In November
2010 Access Financial joined the cause by assisting in the purchase of a new multifunction printer which our
IT department continues to support.
38
ACCESS
Disclosure of Shareholdings
AS AT DECEMBER 31, 2010
Shareholdings of Directors and Senior Management
Directors
Brian Goldson
Marcus James
Christopher Berry
Gary Peart
Alexander Johnson
Shareholdings
--
--
Senior Management
Catherine Thomas
Sarah Williams
Tresia Beckford
Shareholdings
----
Connected Persons
----
80,089
112,000,000
--
Connected Persons
120,000
--
1,363,200
Name
Marcus James
Mayberry West Indies Limited
Shooting Star Limited
Mayberry Managed Clients Account
Generation 4 Company Limited
Butterfly Bliss Limited
Wakefield Farms Ltd.
Catherine Adella Peart
Bamboo Group Holdings Limited
Konrad Berry
Shareholdings
112,000,000
107,607,850
10,000,000
9,549,491
6,816,000
3,700,000
2,772,000
2,726,000
1,756,766
1,363,200
39
Annual Report
2010
42 to 68,
40
ACCESS
41
Annual Report
2010
Statement of Comprehensive Income
YEAR ENDED 31 DECEMBER 2010
42
ACCESS
Statement of Financial Position
31 DECEMBER 2010
43
Annual Report
2010
Statement of Changes in Shareholders' Equity
44
ACCESS
Statement of Cash Flows
45
Annual Report
2010
31 DECEMBER 2010
46
ACCESS
31 DECEMBER 2010
47
Annual Report
2010
31 DECEMBER 2010
48
ACCESS
31 DECEMBER 2010
49
Annual Report
2010
31 DECEMBER 2010
50
ACCESS
31 DECEMBER 2010
51
Annual Report
2010
31 DECEMBER 2010
52
ACCESS
31 DECEMBER 2010
53
Annual Report
2010
31 DECEMBER 2010
54
ACCESS
31 DECEMBER 2010
55
Annual Report
2010
56
31 DECEMBER 2010
ACCESS
57
Annual Report
2010
31 DECEMBER 2010
58
ACCESS
31 DECEMBER 2010
59
Annual Report
2010
31 DECEMBER 2010
60
ACCESS
31 DECEMBER 2010
61
Annual Report
2010
31 DECEMBER 2010
62
ACCESS
31 DECEMBER 2010
63
Annual Report
2010
31 DECEMBER 2010
64
31 DECEMBER 2010
ACCESS
65
Annual Report
2010
31 DECEMBER 2010
66
ACCESS
31 DECEMBER 2010
67
Annual Report
2010
31 DECEMBER 2010
68
ACCESS
NOTES
69
ACCESS
J$100
STAMP
FORM OF PROXY
ACCESS FINANCIAL SERVICES LIMITED (THE “COMPANY”)
“I/We _________________________________________________________________________
of ____________________________________________________________________________
being a shareholder(s) of the above-named Company, hereby appoint ____________________
______________________________________________________________________________
of ____________________________________________________________________________
or failing him, ___________________________________________________________________
of ____________________________________________________________________________
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the
Company to be held at 2:00 p.m. on the 22nd day of June 2011 at the Knutsford Court Hotel, 85
Chelsea Avenue, Kingston 5 and at any adjournment thereof.
I desire this form to be used for/against the resolutions as follows:
No.
Resolution details
Vote for or against
(tick as appropriate)
1.
2.
3.
4.
To receive the report of the directors and the audited accounts of the
Company for the financial year ended December 31, 2010.
For _______________
To authorize the Directors to appoint the Auditors of the Company
based on the results of tenders sent out to auditing firms, and to
authorize the Directors to determine their remuneration.
For _______________
To approve the interim dividend declared by the Directors on
February 1st, 2011 in the amount of $0.31 per ordinary share, that
was paid to shareholders of the Company on record as of March 2n d,
2011 on March 31st , 2011 as the final dividend for the financial year
ended December 31, 2010.
For _______________
As special business, to consider the following resolution: that each of
the ordinary shares in the capital of the Company be subdivided into
10 shares
For _______________
Against
For ____________
Against
Against ____________
For
Against
Against ____________
For
Against ____________
Unless otherwise directed the proxy will vote as he thinks fit.
Signed this
day of
2011:
________________________________________________
Signature of Shareholder
Against

Annual Report 2010-F - Access Financial Services

Transcription

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