JMMB records $191m profit for first 9 mths of 2019

Jamaican financial services conglomerate, JMMB Group, recorded a net profit of J$4 billion (TT$191 million), for the nine months period ending December 31, 2019, a 33 per cent increase, year-over-year. The group also posted a net operating revenue of J$17.38 billion (TT$830 million), an increase of 26 per cent, compared to the corresponding prior period.

The Group’s performance was largely driven by growth in its core business operations, namely net gains on securities trading; foreign exchange trading gains; fees and commission income; and net interest income.

Foreign exchange trading gains saw growth of J$359.28 million (TT $17.2 million), or 19 per cent, as a result of increased trading activity and growth in the regional markets, over the period.

Additionally, fees and commission income grew by 32 per cent, spurred by the significant growth in managed funds and collective investment schemes, across the JMMB Group. Net interest income also grew by five per cent, as a result of the solid growth in loan and investment portfolios.

Net gains on securities traded saw a significant uptick of 69 per cent, largely attributable to the improved appetite for emerging market assets, and the company taking advantage of market opportunities.

In a statement Tuesday, the group said it continues to manage its operational efficiency, placing increased focus on the standardisation of its core operating platforms, processes and systems across the group, in a bid to yield greater efficiency and improved client experience – in keeping with its One Group, One Client approach.

Even as the company continues to manage this, its operational expenses increased year-on-year by 18 per cent, amounting to J$11.21 billion (TT $540 million). This increase was primarily driven by the costs associated with the continued build-out of commercial banking activities, expansion of JMMB Express Finance TT. This subsidiary opened its fifth location in December following the introduction of consumer financing in 2018.

The company’s continued efforts to manage its efficiency led to an improvement in its efficiency ratio from 69 per cent to 64 per cent year-on-year as a result of the increased growth in revenue, which outpaced the growth of its expenses.

Keith Duncan, JMMB Group CEO, via the statement, said, the group was pleased with the solid growth trajectory, which is line with its. Last year the group announced a 22.5 per cent acquisition of the Sagicor Financial Company Limited (SFC), which Duncan said gives JMMB “diversification and the opportunity to participate in the future growth of the market leader in Caribbean’s insurance, pension and asset management sectors.”

The financial impact of this major transaction is expected to be seen in the group’s year-end financial results, at the end of March.

At the end of the nine-month reporting period, JMMB’s asset base was J$413 billion (TT $19.82 billion), or a 29 per cent increase compared to the start of the financial year and was attributable to a larger loan and investment portfolio, as well as its SFC investment.