JMMB Group Profit for First Quarter Jumps to J$1.9 B

Regional financial entity, JMMB Group, saw a jump in its profit to J$1.93B, for the first quarter ending June 30; this reflected a growth of 148% year-over-year. Additionally, the Group posted net operating revenue of J$6.86 billion, which was an increase of 37%, year-over-year; as a result of growth in core business operations.

Keith Duncan, JMMB Group CEO shared, “I am proud of the work done by the team in achieving results that have surpassed the company’s pre-pandemic performance. This reflects the company’s commitment to its growth trajectory and our clients’ confidence in us to support them in achieving their financial goals, even during unprecedented times.” JMMB Group will continue to seek to leverage opportunities to provide shareholder value and offer clients financial solutions suited to their needs. “We remain cautiously optimistic that our local economy and the global economy will continue to recover, as vaccination becomes more readily available, and countries continue to open their borders. The year ahead will present challenges, especially in light of the new COVID-19 variants, however as a team we remain committed to further embed financial partnership, maximize operational efficiencies and streamline our processes, so that we can provide win-win outcomes,” outlined Duncan.

The company’s recently released financial results showed that the Group’s performance was largely driven by growth in its core business operations and its share of profit in its associate - Sagicor Financial Corporation (SFC), of which JMMB Group has a 22.85% stake. 

Net interest income grew by 18% year-over-year, moving from J$2.42 billion to J$2.86 billion. While, trading gains surged by 87% or J$1.14 billion, moving from J$1.31 billion to J$2.45 billion, as market activity rebounded considerably. This reflected a significant improvement in global investor sentiment, in part due to the global vaccination programme underway. There was also strong demand for emerging market assets as global interest rates were low and investors sought to maximize yields. The company could therefore successfully execute its trading strategy, by identifying and capitalizing on market opportunities that delivered superior results. Additionally, fees and commission income grew by 33% over the corresponding period, to J$957 million. This was spurred by increased economic activity as well as significant growth in managed funds and collective investment schemes across the Group. Foreign exchange gains also increased from J$527.79 million to J$583.17 million, which reflects a 10% growth in earnings over the comparative period. 

The JMMB Group also amassed J$319 million in share of profit of associate, Sagicor Financial Company Limited (SFC). Patrick Ellis, chief financial officer, JMMB Group underscored the value of this transaction noting, “We remain confident in both the short and long-term value of this acquisition, as it aligns with the Group’s inorganic growth strategy and will continue to positively impact profitability and in turn accrue benefits to shareholders.” Adding, “This investment complements the solid foundation that JMMB Group has built as a regional integrated financial provider, evidence by our solid track record of performance.” 

As the Group seeks to build out its financial services model in keeping with its growth strategy, it saw an increase in its operational expenses from J$3.71 billion to J$4.72 billion, over the corresponding period. This was largely driven by project-related activities, centered on process optimization and IT infrastructure, as a way to further leverage efficiencies, in addition to inflationary increases. In spite of the increase in expenses, the Group’s operational efficiency showed a positive trend, moving from 74% to 69%.  The company remains committed to managing its operational efficiencies, by streamlining its processes, procedures and information technology platforms, combined with efforts to leverage synergies across the Group. 

At the end of the first quarter of the 2021/22 financial year, the JMMB Group’s asset base stood at J$544.56 billion, an increase of J$30.86 million, or a 6% increase, compared to the start of the financial year. This increase was mainly attributable to larger loan and investment portfolios.

Over the three-month period, shareholders’ equity increased by 5% to J$64.32 billion. This was largely on account of high profitability for the quarter and increases in asset prices, due to the positive movement in investment revaluation reserve.

JMMB Group Eyes More Digitization and Inorganic Growth for Expansion 
Keith Duncan, in sharing on the strategic outlook of the Group, outlined, “For the upcoming quarter, we expect continued uncertainty to persist in the financial space, especially as there are new COVID-19 variants and vaccine hesitancy prevails. We remain confident in the sustainability of the Group, as we seek to execute our strategic imperatives to ensure that we continue to maximize shareholder value. This as we provide solutions that assist our clients to achieve their financial goals, thereby building on our solid foundation of client partnership.” He further outlined, “We remain focused on continuously optimizing key processes, systematically improving the ease of doing business with the Group, and normalizing the use of technology and digital channels while maintaining client intimacy.” The rollout of the new JMMB Bank Smart ATMs is underway and is expected to provide clients with added convenience and an improved client experience, by allowing clients to have real-time updates and immediate access to cash deposited. Additionally, JMMB Group is actively looking to capitalize on opportunities for future growth through acquisitions across the region, to improve shareholder value, increase its market share, diversify its income stream and expand its footprint, even while building out its financial solutions to target key segments such as small and medium-sized enterprises (SMEs).