Date: February 14, 2019
JMMB Group Limited (JMMBGL) for the nine months ended December 31, 2018 recorded net interest income of 6.68 billion, an 18% increase when compared with $5.66 billion recorded for the corresponding period in 2017. Interest expenses increased 6% to total $6.44 billion relative to the $6.07 billion recorded for the same period in 2017. JMMBGL highlighted that “there was strong growth in the loan and investment portfolios.” Net interest income for the quarter amounted to $2.33 billion, a 22% increase when compared with the $1.90 billion recorded for the same period in 2017.
Fees and commission income for the period amounted to $1.84 billion, an improvement of 40% on the $1.31 million recorded last year as the company noted this was, “due to significant growth in managed funds and collective investment schemes across the Group.” Net gains from securities trading showed a decline of 24%, to total $3.34 billion (2017: $4.39 billion). According to management, this “reflected negative investor sentiments for emerging market.”
Dividend income for the nine months declined 16% to close at $13.02 million relative to $15.44 million recorded for the same period in 2017. Foreign exchange margins from cambio trading advanced 113%, totalling $1.90 billion (2017: 891.63 million).
Operating expenses amounted to $9.48 billion, a growth of 9% (2017: $8.71 billion) which led to an operating profit of $4.05 billion, an increase of 18% when compared to the $3.43 billion booked the year prior. The Company noted, this was “because of increased volume trading activity and growth in regional markets.
JMMBGL recorded an impairment loss on financial assets of $243.62 million (2017: $143.98 million) and other income of $36.84 million (2017: $67.50 million).
This resulted in a profit before taxation amount of $4.09 billion, a 17% increase over the $3.49 billion recorded for the corresponding period in 2017. Taxation for the period amounted to $1.07 billion a 17% increase compared with the $915.21 million recorded for the same period for 2017.
Consequently, JMMBGL booked a 17% increase in net profit for the period to total $3.02 billion compared to $2.58 billion reported for the similar period of 2017. Net profit for the quarter amounted to $946.37million a 4% improvement relative to the $908.93 million reported for the same period 2017.
Net profit attributable to the shareholders of the company totalled $2.97 billion relative to $2.54 billion in 2017, a 17% increase year over year. For the quarter, JMMBGL booked net profit attributable to shareholders of $939.06 million relative to $871.14 million reported for the corresponding quarter of 2017.
As a result, earnings per share (EPS) for the nine months amounted to $1.82 (2017: $1.56) while EPS for the quarter amounted to $0.58 (2016: $0.53). The twelve-month trailing EPS amounted to $2.44 where the number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on February 14, 2017, at $32.97
Balance Sheet at a glance:
Total assets as at December 31, 2108 amounted to $310.76 billion relative to $270.53 billion in 2017. According to JMMBGL, “This was mainly on account of a larger loan and investment portfolio. The investment portfolio increased by J$12 billion or 6% to J$207.99 billion, while loans and advances grew by J$6.61 billion or 12% to J$62.23 billion. The credit quality of the loan portfolio continued to be comparable to international standards.”
Shareholders ‘equity totalled $25.08 billion (2017: $28.40 billion). As a result, book value per share stood at $15.38 (2017: $17.42).
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