July 15, 2020
JMMB Group Limited (JMMBGL) for the year ended March 31, 2020, recorded net interest income of $9.28 billion, a 5% increase when compared with $8.84 billion recorded for the corresponding period in 2019. Interest income for the year amounted to $19.69 billion compared to $17.58 billion reported in 2019. Interest expenses increased 19% to total $10.41 billion relative to the $8.75 billion recorded for the same period in 2019. Net interest income for the quarter amounted to $2.26 billion, a 4% increase when compared with the $2.16 billion recorded for the same period in 2019.
Fees earned from managing funds on behalf of clients amounted to $1.42 billion versus $1.14 billion recorded the prior year. Net gains from securities trading climbed 51%, to total $6.17 billion (2019: $4.10 billion).
Foreign exchange margins from cambio trading advanced 17%, totalling $2.81 billion (2019: $2.40 billion). While, net loss from financial assets at fair value through profit or loss (FVTPL) closed at $267.98 million relative to a gain of $130.18 million at the end of the 2019FY.
Operating revenue net of interest expenses amounted to $21.52 billion (2019: $18.04 billion), a growth of 19% year over year. Total other income declined 44% to $55.46 million from $99.79 million booked at the end of 2019FY, the following contributed to total other income;
Dividend income closed at $48.46 million (2019: $54.85 million), reflecting a 12% decline year over year.
Other income decreased by 84% to $7 million (2019: $54.85 million) at the end of March 2020.
Staff costs recorded a 32% growth to $9.42 billion (2019: $7.13 billion), while other expenses closed at $6.51 billion (2019: $5.86 billion). Impairment loss on financial assets increased from $278.62 million to $1.41 billion at the end of the 2020FY.
As a result, operating profit amounted to $5.64 billion, up 10% when compared to the 5.15 billion reported in 2019. As for the quarter, operating loss closed at $150.17 million relative to an operating profit of $1.09 billion booked at the end of 2019FY.
JMMBGL recorded a gain on acquisition of associate of $2.80 billion (2019: nil). Share of profit of associated company amounted to $195.21 million (2019: nil), while loss on disposal of property, plant and equipment of $14.36 million was reported compared to gain of $2.21 million recorded in the same period last year. As such, JMMBGL recorded a profit before taxation of $7.22 billion, a 48% increase over the $4.87 billion recorded for the corresponding period in 2019. As for the quarter, profit before taxation closed at $1.42 billion (2019: $780.78 million), an 82% increase. Taxation for the period amounted to $150.04 million, an 85% decrease compared with the $1 billion incurred in 2019.
Consequently, JMMBGL booked an 83% increase in net profit for the year to total $7.07 billion compared to $3.87 billion reported for 2019. Net profit for the quarter amounted to $3.06 billion, relative to the $849.64 million reported for the same quarter of 2019.
Net profit attributable to the shareholders of the company totalled $6.99 billion relative to $3.82 billion in 2019, an 83% increase year over year. However, JMMBGL posted total comprehensive losses of $1.35 billion compared to an income of $3.32 billion in 2019. Total comprehensive loss attributable to shareholders amounted to $1.22 billion relative to comprehensive income of $3.38 billion posted in 2019.
As a result, earnings per share (EPS) for the financial year amounted to $3.58 (2019: $1.95), while EPS for the quarter amounted to $1.57 (2019: $0.43). The number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on July 15, 2020 at $31.70.
Balance Sheet at a glance:
Total assets as at March 31, 2020 amounted to $400.22 billion relative to $320.04 billion in 2019. The movement was due to an increase in ‘Interest in associated companies’ to close at $35.01 billion (2019: nil) and growth in ‘Loans and notes receivables’ which closed at $98.84 billion (2019: $67.95 billion). ‘Cash and cash equivalents’ also contributed to the increase in the asset base closing at $42.64 billion (2019: $30.73 billion).
Shareholders ‘equity totalled $40.23 billion (2019: $30.07billion). As a result, book value per share stood at $20.57 (2019: $15.37).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
