February 14, 2020
JMMB Group Limited (JMMBGL) for the nine months ended December 31, 2019 recorded net interest income of 7.02 billion, a 5% increase when compared with $6.68 billion recorded for the corresponding period in 2018. Interest expenses increased 20% to total $7.72 billion relative to the $6.44 billion recorded for the same period in 2018.Net interest income for the quarter amounted to $2.40 billion, a 3% increase when compared with the $2.33 billion recorded for the same period in 2018.
Fees and commission income for the period amounted to $2.43 billion, an improvement of 32% on the $1.84 billion recorded last year. JMMB highlighted this, “was due to significant growth in managed funds and collective investment schemes across the Group.”
Net gains from securities trading showed an increase of 69%, to total $5.65 billion (2018: $3.34 billion). While for the quarter, net gains from securities trading closed at $1.70 billion (2018: $836.39 million). According to management, this “was partly due to improved appetite for emerging market assets. Additionally, there was a tender offer by the Government of Jamaica for global bonds maturing in 2022, 2025 and 2028 bonds. This offer was oversubscribed and subsequently, global bonds maturing in 2045 were re-opened and an additional US$815M issued.”
Dividend income for the nine months surged 186% to close at $37.27 million relative to $13.02 million recorded for the same period in 2018. Foreign exchange margins from cambio trading advanced 19%, totalling $2.26 billion (2018: $1.90 billion).
Operating expenses amounted to $11.21 billion, a growth of 18% (2018: $9.48 billion) which led to an operating profit of $5.79 billion, an increase of 43% when compared to the $4.05 billion booked the year prior. The Company noted, this was “This growth was attributed primarily to continued expansion of commercial banking services in Jamaica and JMMB Express in Trinidad and Tobago as well as project related activities centred on process optimization.”
JMMBGL recorded an impairment loss on financial assets of $398.89 million (2018: $234.62 million) and other income of $260,000 (2018: $36.84 million).
This resulted in a profit before taxation amount of $5.79 billion, a 42% increase over the $4.09 billion recorded for the corresponding period in 2018. Taxation for the period amounted to $1.79 billion, a 67% increase compared with the $1.07 billion recorded for the same period for 2018.
Consequently, JMMBGL booked a 33% increase in net profit for the period to total $4 billion compared to $3.02 billion reported for the similar period of 2018. Net profit for the quarter amounted to $1.20 billion, a 27% improvement relative to the $946.37 million reported for the same period 2018.
Net profit attributable to the shareholders of the company totalled $3.93 billion relative to $2.97 billion in 2018, a 32% increase year over year. For the quarter, JMMBGL booked net profit attributable to shareholders of $1.20 billion relative to $939.06 million reported for the corresponding quarter of 2018.
As a result, earnings per share (EPS) for the nine months amounted to $2.01 (2018: $1.52) while EPS for the quarter amounted to $0.61 (2018: $0.48). The twelve-month trailing EPS amounted to $2.44 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 14, 2020 at $44.99.
Management noted, “The Group’s first Additional Public Share Offering, the largest of its kind in Jamaica which raised J$12.4 billion. This funding strengthens the Group’s capital base, and will be used to further facilitate the Group’s expansion and diversification strategy through acquisitions and adding new business lines.”
Balance Sheet at a glance:
Total assets as at December 31, 2019 amounted to $412.99 billion relative to $310.76 billion in 2018. According to JMMBGL, “This was mainly on account of a larger loan and investment portfolio as well as investments in associated company SFC. Investment portfolio and loans and notes receivable grew by 7% and 38% to J$221.32 billion and J$93.75 billion, respectively. The credit quality of the loan portfolio continued to be comparable to international standards.”
Shareholders ‘equity totalled $50.21 billion (2018: $25.08 billion). As a result, book value per share stood at $25.68 (2018: $12.82).
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