October 08, 2020
2019/20 achievements as a Group:
- Ground-breaking Additional Public Offer (92.5% oversubscribed)
- 22.5% ownership of Sagicor Financial Company (SFC) for US$250 million (acquisition of 33,213,764 ordinary shares). SFC contributed J$195.2 Million in earnings for four months of the FY2019/20.
- Focused on new segments and new products:
-
- Payment Strategy: Visa debit card launched
- SME Strategy:
-
-
- New Credit Adjudication Framework Launched
- New In-Branch Partnership Structure
- SME Resource Center
- New Solutions Launched
-
-
- Financial Inclusion Strategy- In JMMB Express Finance T&T:
-
-
- 2 New locations
- Over 6000 clients
- Online Onboarding
- Market Share from 0% to 5%
- Profitability as at May 2020
-
- In Jamaica, core banking technology was upgraded, visa debit card implemented, ETMs converted to ATMs.
- Visa debit card upgrade in T&T and implantation in Dominican Republic
- Online Banking Standardization to Moneyline in T&T and DR
- Rated jmA/A+ rating by CariCRISS in November 2019 and A-af rating by Feller Rate in May 2020
- Total number of clients across the Group is 352, 000+ (36,000 new clients to the Group in FY2019/20, a 11% year over year growth).
- 12600+ goal plans created and 35% more financing goals achieved
- New solution: EZ Start Savings account
- IT focus: improving partnership by strengthening IT systems
-
- Upgrades to online banking retail and business
- Visa debit card services
- Investments ETMS converted to Bank ATMS
- Online IPO/APO services
- Core Enabling Technology T-24 (upgrade and implemented)
- More Digital Channels to Partner with (online chat)
JMMB Group’s high-level strategic response according to Management is as follows:
- Respond: Resolve short – medium term strategic shocks
- Reassess: Find Opportunities to grow top & bottom line
- Rebound: Prepare to coexist with COVID-19
- Reinforce: Roll over efficiency gains into new normal
- Reimagine: Rethink business & operating model
For FY2020/21, Management outlined its response to COVID-19:
- Client Partnership:
-
- For directly impacted loan clients by JMMB offered appropriate relief package
- For clients indirectly but negatively impacted, JMMB advised them to de-risk portfolios
- For marginally and/ or positively impacted clients, JMMB advised to take defensive action/ define new goals
- Liquidity Management
- Capital Management
- Expense Management
- Business Continuity
Management mentioned the Group’s outlook as follows:
- Continuous improvement
- Upholding our service level standards
- A client focused IT strategy
- Pipeline acquisitions
- New business lines
- Standardize platform
- reorganize group regards to consolidation, governance and regulation reporting
Management noted, “embedding financial partnership strategy in the Group’s regional integrated financial services model is revitalized into the “new normal”. The group will continue to focus on acquisition, consolidation, growth and new growth.
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.