JMMB Group Reports Strong Q3 Recovery With J$1.83B Profit
JMMB Group Limited (JMMBGL) delivered a net profit of J$1.83 billion and earnings per share of J$0.84 for the nine-month period ended December 31, 2024. This marks a strong rebound in the third quarter year-to-date net profit, as evidenced by a 164% improvement from the J$696 million second quarter year-to-date net profit. Further, third quarter year-to-date operating profit reached J$379 million, following an operating loss of J$570 million in the first half of the financial year.
Revenue Resilience Amid Economic Pressures
Net operating revenue for the period totalled J$18.13 billion, reflecting a 4% decline year-over-year, primarily due to global interest rate pressures. Net interest income grew 6% to J$8.13 billion, supported by a stronger funding mix. Foreign exchange (FX) trading gains increased by 7% to J$2.18 billion, while fixed income trading gains declined 28% to J$3.58 billion. Fees and commission income remained stable at J$3.89 billion, as clients adopted a cautious approach to capital markets transactions.
Banking Strength Fuels Growth
The banking and related services segment contributed J$12.29 billion, or 68% of net operating revenue, reflecting a 16% increase driven by loan book growth and improved margins. Financial and related services generated J$5.34 billion, accounting for 29% of revenue, but declined by 19% due to elevated interest rates and tight market liquidity. Regionally, operations in the Dominican Republic and Trinidad & Tobago accounted for 19% and 29% of net operating revenue, respectively.
Strategic Investments Drive Long-Term Value
JMMB’s strategic investment in Sagicor Financial Company (SFC) continues to yield positive returns, contributing J$1.76 billion to share of profit over the period. Finance cost associated with the SFC investment amounted to J$1.32B over the period.
Navigating Market Shifts & Economic Trends
Monetary policies in key markets have seen adjustments. In Jamaica, the Bank of Jamaica (BOJ) reduced its policy rate from 7% to 6% between July and December 2024. The Dominican Republic’s Central Bank lowered rates by 75 basis points to 5.75% between
October and December 2024 and in January 2025, kept interest rates steady Meanwhile, the U.S. Federal Reserve reduced rates by 50 basis points between November and December 2024 and held steady in January 2025 at 4.25%-4.50%. Despite recent rate cuts, interest rates remain elevated, with potential for continued compression of net interest margins as the environment remains uncertain due to the direction of monetary policy and geopolitical developments globally. Nevertheless, JMMB remains focused on revenue diversification and cost management to navigate these conditions.
Strengthening Financial Position & Client Confidence
Total assets grew 4% to J$704.75 billion, while the loan portfolio expanded 7% to J$212.90 billion, maintaining strong credit quality. The investment portfolio increased 2% to J$326.93 billion. Customer deposits rose 10% to J$219.65 billion, reflecting continued client confidence. Shareholders' equity increased 2% to J$55.43 billion, driven by internally generated capital. Off-balance sheet funds under management grew to J$222.73 billion, up from J$187.38 billion in December 2023.
Focused on Efficiency & Future Growth
Operating expenses increased from J$16.48 billion to J$17.76 billion due to inflationary pressures and strategic investments. JMMB remains focused on optimizing operations through digital transformation, centralization, and enhanced sales integration.
"We are committed to improving operational efficiency and operational excellence as we invest in digitization and standardization across the Group," said Patrick Ellis, JMMB Group CFO. "Our strategic investments and partnerships position us well for future success."
Commitment to Clients, Team, and Stakeholders
JMMB Group CEO, Keith Duncan, expressed his appreciation for the hard work and dedication of the team in navigating the evolving market conditions. "Our performance reflects resilience and the effectiveness of our strategic initiatives. We remain committed to delivering long-term value for our stakeholders and are deeply grateful to our team for their unwavering commitment to our mission."
Positioned for Future Success
Looking ahead, JMMB remains focused on driving long-term value by strengthening its core business segments and pursuing strategic opportunities. The group will continue leveraging technology, digital transformation, and strategic partnerships to enhance operational efficiency and expand its service offerings. As market conditions evolve, JMMB is well-positioned to navigate challenges and capitalize on growth opportunities across its regional markets.