February 14, 2022
JMMB Group Limited (JMMBGL) for the nine months ended December 31, 2021 recorded net interest income of $8.98 billion, an 18% increase when compared with $7.58 billion recorded for the corresponding period in 2020. Interest expenses increased 26% to total $11.68 billion relative to the $9.24 billion recorded for the same period in 2020. Net interest income for the quarter amounted to $3.15 billion, a 21% increase when compared with the $2.60 billion recorded for the same period in 2020. According to management, “All the revenue lines increased, especially net interest income, trading gains and fees and commission income. This was facilitated by increased economic activity relative to the prior period as well as accommodative monetary policies for most of the period. Further, our clients continue to demonstrate confidence in the value of solutions and services which was evidenced by strong growth in the loan and investment portfolios.”
Fees and commission income for the period amounted to $3.73 billion, a 58% increase on the $2.36 billion recorded last year. JMMBGL noted that, “reflected increased economic activity as well as significant growth in managed funds and collective investment schemes across the Group. Our clients continue to be reassured by our expertise and our dedication to ensuring that they meet their financial life goals.”
Net gains from securities trading showed an increase of 45% to total $7.15 billion (2020: $4.94 billion). While for the quarter, net gains from securities trading closed at $3.27 billion (2020: $1.75 billion).
Dividend income for the nine months rose 29% to close at $115.63 million relative to $89.65 million recorded for the same period in 2020. Foreign exchange margins from cambio trading climbed 28%, totalling $2 billion (2020: $1.57 billion).
Operating expenses amounted to $13.24 billion, a 24% increase (2020: $10.66 billion) which led to an operating profit of $7.98 billion, a 55% increase when compared to the $5.14 billion booked the year prior.
JMMBGL recorded an impairment loss on financial assets of $761.14 million (2020: $741.79 million) and other income of $14.40 million (2020: $9.22 million).
Share of profit of associate for the period amounted to $2.08 billion relative to a loss of $106.97 million for the period ended December 31, 2020. This resulted in a profit before taxation amount of $10.07 billion, a 100% increase relative to the $5.04 billion recorded for the corresponding period in 2020.
Consequently, JMMBGL booked a 119% increase in net profit for the period to total $8.82 billion compared to $4.02 billion reported for the similar period of 2020. Net profit for the quarter amounted to $3.34 billion, a 107% improvement relative to the $1.61 billion reported for the same period 2020.
Net profit attributable to the shareholders of the company totalled $8.28 billion relative to $3.85 billion in 2020, a 115% increase year over year. For the quarter, JMMBGL booked net profit attributable to shareholders of $3.15 billion relative to $1.51 billion reported for the corresponding quarter of 2020.
As a result, earnings per share (EPS) for the nine months amounted to $4.23 (2020: $1.97) while EPS for the quarter amounted to $1.61 (2020: $0.77). The twelve-month trailing EPS amounted to $6.10 where the number of shares used in the calculations amounted to 1,955,552,532 units. Notably, JMMBGL’s stock price closed trading on February 11, 2022 at $41.99 with a corresponding P/E ratio of 6.88 times.
Balance Sheet at a glance:
Total assets as at December 31, 2021 amounted to $609.02 billion relative to $489.24 billion in 2020, a 23% increase. This was mainly due to a $70.60 billion increase in ‘Investment and resale agreements’ to $327.86 billion (2020: $257.26 billion) and a $21.82 billion increase in ‘Loans and notes receivable’ to $137.74 billion (2020: $115.92 billion).
Shareholders ‘equity totalled $63.82 billion (2020: $59.50 billion). As a result, book value per share stood at $32.64 (2020: $30.43).
Disclaimer:
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.
