JMMB profits fall by 46%

Regional financial conglomerate JMMB Group has recorded Jca$6.3 billion in net profit for the financial year ending March 31, according to its recently published audited financials.

This reflects a 46 per cent decline in profitability compared to the record-high profit of 2021/22.

The group also reported Jca$23.4 billion in operating revenue, a fall-off of 12 per cent compared to the prior year.

Its financial performance continues to be impacted by the challenging economic conditions, characterised by rising interest rates, inflationary pressure coupled with depressed trading activities in emerging markets.

Patrick Ellis, JMMB Group chief financial officer said, “JMMB Group continues to maintain credible performance and remains committed to our diversification strategy, which has driven our core earnings.

“As such we have bolstered our financial performance with our business line and regional diversification as evidenced by the 32 per cent contribution to profit from the banking business line. Additionally, operations in TT have driven 17 per cent of the Group’s profit, which is an increase from seven per cent in the prior year.”

The group’s 23.32 per cent investment in Sagicor Financial Company Limited (SFC) has also contributed positively to the Group’s profitability with $2.7 billion in share of profit and J$1.1 billion in dividends.”

In sharing more details on the regional financial conglomerate’s performance, Ellis outlined that its net interest income had a slight decline by five per cent, year-over-year, moving from J$11.8 billion to J$11.2 billion.

Gains on trading took the hardest hit, with a 52 per cent decline compared to the prior year, totaling, Jca$3.5 billion. The group however saw a 26 per cent uptick in foreign exchange gains, totaling, Jca$3.3 billion. Additionally, fees and commission grew by 19 per cent to J$3 billion.

This was mainly driven by increased economic activity in all the territories in which the Group operates, as well as growth in managed funds, collective investment schemes and 46 per cent increase in capital market segment across the group.

The group’s operational expenses increased to Jca$19.9 billion, as result of inflation and its active pursuit of its strategic imperatives, designed to drive medium to long-term growth.