JMMB profits take covid19 hit

The JMMB financial year ended on March 31 – just as the first effects of the covid19 lockdown started trickling through the economy. In its financial statements, published on Monday, the Jamaican-based financial institution’s TT operations, JMMB (Trinidad and Tobago) Ltd, said one major determinant of its financial results for the last year was “the impact of the generally grim economic outlook locally and globally.”

Despite a 19 per cent growth in revenues year-on-year, the company’s profits fell 37 per cent to $16.7 million. The company also reported a $25.7 million impairment on financial assets compared to the previous year, in keeping with IFRS 9. It noted that the grim economic outlook was a contributing factor to this expected credit loss (ECL) calculation.

“Amidst turbulence, opportunities for growth, redesign and repositioning can be created by strong brands. In these circumstances … we sought to assist (our clients) in securing their financial future… we also embarked on our digital strategy… effectively minimising the need for in-branch face-to-face contact,” chairman Archibald Campbell said in his report.

Despite the negative impact of the pandemic on international markets – of which JMMB was not immune – Campbell said the group was still on sound footing to weather the storm.

“The events of the last four months and the uncertainty of the future have highlighted the need for financial institutions that have embedded risk management protocols, effective governance structures and agile business models. In this regard, JMMB’s ongoing focus on our enterprise risk framework provides a strong foundation to assure our resilience.”