September 23, 2022
JMMB Group Limited (JMMBGL) for the year ended March 31, 2022, recorded a net interest income of $11.58 billion, an 11% increase when compared with $10.46 billion recorded for the corresponding period in 2021. Interest income for the year amounted to $27.13 billion compared to $22.12 billion reported in 2021. Interest expenses increased 33% to total $15.56 billion relative to the $11.66 billion recorded for the same period in 2021.
JMMBGL booked a 56% increase in net profit for the year to total $12.02 billion compared to $7.72 billion reported for 2021. According to the Group’s Chief Financial Officer Mr. Patrick Ellis, this was the largest earnings in the Group’s history. He also noted that “within the FY 2021/22 the Group focused on revenue, business line, and geographic diversification to grow in a smart and effective way.” Notably one of the main drivers of growth during the financial year was the Group’s investment in Sagicor Financial Company Limited (SFC) which contributed 42% to net profit.
The FY 2022/23 Q1 strategy is termed ”Smart Growth” which consists of revenue diversification, strong capital management and the growth of core activities in key business lines. Notably, for the three months ended June 30, 2022, booked Net interest income of $2.91 billion compared to $2.86 billion booked June 2021, an increase of 2%. Of this, Interest income grew by 23% to close at $7.84 billion, from the $6.39 billion booked in 2021, while interest expenses increased by 40% to total $4.93 billion relative to $3.53 billion in the prior year. During the first quarter, JMMBGL booked a 2% increase in net profit to $1.97 billion compared to $1.93 billion reported for the similar period of 2021.
Outlook:
Group CEO Mr. Keith Duncan noted that the focus for FY 2022/2023 and beyond is to build on the success of its regional integrated financial services model and diversification strategy by:
- Efficient growth through revenue diversification and strong capital management
- New products and income streams
- More digital experiences
- Inorganic growth
- Improve operational efficiency
As JMMB continues to enhance the digital journey clients will see:
- The introduction of personal digital assistant Johanna via the website and WhatsApp
- New payment solutions following the partnership with ePay
- New closed loop cards and remittance prepaid cards
- POS ‘tap to pay’ and ‘scan to pay’ using QR code
JMMBGL has launched its Private Equity Fund which will be financed by $1.5 billion which was raised for this purpose. The Private Equity Fund will start to fuel the growth of the SME Segment, to focus on medium-sized enterprises by providing equity for their growth.
The Real Estate Committee continues to build out the real estate portfolio, the areas of focus for development will be in the BPO and commercial space. According to Mr. Keith Duncan “There are three projects in the pipeline for a total developmental budget of $5 billion dollars. This includes approximately 100,000 square feet of commercial office spaces, which includes the new flagship location in Liguanea. The project also includes approximately 30,000 square feet of BPO space. We believe downtown is a growth area so under urban renewal we acquired land and are looking to build out approximately 33,000 square feet in downtown Kingston.”
The Group is expanding its footprint in the Dominican Republic by moving to Punta Cana. The 100% acquisition of Banco Multi Bell Bank will:
- Bring full Commercial License to the DR
- Enables expanded product/Solution offerings to client
- Set stage for further expansion and increased market share
When asked about the stock price in relation to the Group’s performance Mr. Keith Duncan mentioned, “We are a Main market company, we are not a Junior market company where you see all the excitement and enthusiasm around the listings. A lot of market activity is focused in those areas, not necessarily the Main market. To manage this, JMMBGL have to keep our shareholders, the analyst and investing community engaged. We have been doing quarterly sessions where we give updates following our quarterly earnings to contextualize where we are, to reinforce what our growth strategies are, and to keep the market informed.”
Regarding the Group’s pending Share Buyback, Mr. Keith Duncan added, “We got the board to sign off on our buyback, however, we are awaiting the regulatory approval from Trinidad. We have determined that we must support the stock at technical levels” Additionally, “We have to look at our dividend per share, for a Main market stock dividend yield is important however we have to balance that with Cash Flow. We fully intend to balance capital and liquidity so we can provide an attractive dividend yield. We have to keep the market educated, provide technical support with buyback programs, and look at how we reward our shareholders. These are the areas we will continue to focus on so we can deliver value to our shareholders.”
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