November 12, 2021
JMMB Group Limited – (JMMBGL) booked net interest income of $5.82 billion compared to $4.99 billion in 2020, an increase of 17%. Of this, interest income grew by 20% to close at $13.15 billion, from the $10.94 billion booked in 2020, while interest expenses increased by 23% to total $7.33 billion relative to $5.95 billion in the prior year. Net interest income for the quarter improved 15% to close at $2.96 billion relative to $2.56 billion a year earlier. JMMBGL noted that, “this was facilitated by increased economic activity relative to the prior period as well as continued accommodative monetary policies in the countries in which we operate. 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.” Furthermore, “Global investor sentiment improved when compared to the prior period, especially as the global vaccination programme is underway. There was strong demand for emerging market assets as global interest rates were low and investors were in search of yields. Within this context, we continued to successfully execute our trading strategy and were able to identify and capitalize on market opportunities that delivered superior results.”
Fees and commission income for the period amounted to $2.52 billion, an increase of 66% on the $1.52 billion recorded for last year’s corresponding period. According to the company, this “reflected increased economic activity as well as significant growth in managed funds and collective investment schemes across the Group.” Foreign exchange margins from cambio trading recorded an increase of 14% year over year to close the period at $1.22 billion (2020: $1.07 billion). While net gains from securities trading showed an increase of 21% totalling $3.88 billion (2020: $3.20 billion). Whereas, dividend income for the period rose 11% to close at $25.81 million (2020: $23.28 million).
Operating revenue net of interest expense for the six months increased 25% to $13.47 billion versus $10.80 billion in 2020. For the quarter, operating revenue net of interest expense also increased 14% to close at $6.60 billion in contrast to the $5.80 billion recorded in 2020. JMMBGL recorded an impairment loss on financial assets of $502.43 million, up 35% from the $372.32 million booked for the same period in 2020.
Operating expenses amounted to $9.36 billion, a year over year increase of 24% (2020: $7.53 billion) which led to an operating profit of $4.11 billion, an increase of 26% when compared to the $3.26 billion booked the year prior. According to JMMBGL, “for a part of the prior period we implemented short term cost containment measures to dampen the effect of the pandemic. Since then, we have pivoted to growth mode and this is reflected in our costs. Operating expenses included inflationary increases as well as strategic spend related to our longer term initiatives aimed at improving the posture and positioning of the Group. Nevertheless, the operational efficiency remained stable at 66% and we will continue to focus on projects to cause scale and efficiency and thereby contribute to long term shareholder value.”
Other income booked for the period rose to $3.78 million relative to the $2.38 million reported for the corresponding period in 2020. JMMBGL also booked share of profit of associate of $2.08 billion versus share of loss of $106.97 million booked last year.
As such, the JMMBGL booked profit before taxation of $6.19 billion for the period, 96% more than the $3.16 billion recorded in 2020.
Following taxes of $700.81 million (2020: $740.85 million), JMMBGL booked a 127% increase in net profit to $5.49 billion compared to $2.42 billion reported for the similar period of 2020. Net profit for the quarter totalled $3.55 billion, a 117% increase compared to $1.64 billion recorded in 2020.
Net profit attributable to the shareholders of the company totalled $5.13 billion relative to $2.34 billion in 2020, a 120% increase year over year. Net profit attributable to the shareholders of the company for the quarter totalled $3.42 billion, 118% more than $1.57 billion in 2020.
Total comprehensive income attributable to Shareholders for the six months amounted to $6.57 billion (2020: $9.75 billion). While for the quarter, total comprehensive income attributable to Shareholders amounted to $3.53 billion (2020: $4.02 billion).
As a result, earnings per share (EPS) for the six months amounted to $2.62 (2020: $1.20), while the EPS for the quarter was $1.75 (2020: $0.80). The twelve-month trailing EPS amounted to $5.27 where the number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on November 12, 2021 at $37.43 with a corresponding P/E of 7.11 times.
Balance Sheet at a glance:
Total assets as at September 30, 2021 amounted to $562.48 billion relative to $466.65 billion in 2020. This was mainly attributable to ‘Investment Securities’ which amounted to $302.37 billion (2020: $245.82 billion).
Shareholders’ equity totalled $64.73 billion (2020: $49.97 billion). As a result, book value per share stood at $33.10 (2020: $25.55).
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.