In 1996, Morgan & Morgan Group established a financial unit with the purpose of offering banking and fiduciary solutions to its corporate and individual clients. Henceforth, two banks were created: MMG Bank & Trust, Ltd. in The Commonwealth of The Bahamas (1996) and MMG Bank Corporation (2003) in the Republic of Panama. These institutions have successfully provided traditional banking and fiduciary services as well as investment advisory services as is demostrated by our continued increase in our assets, our assets under management and our financial results.

MMG Bank Corporation is characterized for being a dynamic banking institution commited to accomplishing its mission to provide products and services in a professional environment with the excellence and confidentialty that has distinguished our owner the Morgan & Morgan Group.

Our fiscal year ended with net profits of US$4.3 million which translates into a Return on Average Assets ratio (ROAA) of 2.0% and a Return on Average Equity (ROAE) of 20.5%. The combination of revenues from our investment portfolio and the increase in commissions generated by our Wealth Management division have permitted such excellent returns. We are optimistic that our Investment Banking division, which has become in a short time a leader in the local securities, will provide an important increase in revenues.

Our financial strength is reflected in our Risk Weighted Capitalization Ratio of 26.2% and our Legal Liquidity Ratio of 109.4%. Given our business model, our assets consist mainly of great credit, highly liquid, short term investments which we believe will help us weather any challenge and take advantage of the opportunities that may present themselves during 2009.

Finally, the financial unit`s achievements are due to the wholehearted commitment of all our executives and personnel, to the guidelines established by our bank`s Board of Directors, and especially, to our clients who place their trust in our institution. To all of them, a most sincere thank you.

Jorge Morgan V.
Chief Executive Officer