JMMBGL reports 17% decline in net profit attributable to shareholders

JMMB Group Limited – (JMMBGL) for the six months ended September 30, 2017 booked Net interest income of $3.76 billion compared to $3.26 billion in 2016, an increase of 15%. This as interest income grew by 8% to close at $7.83 billion, from the $7.26 billion booked in 2016, while interest expenses increased by 2% to total $4.07 billion relative to $4 billion in the prior year.  JMMBGL highlighted that, “there was strong growth in the loan and investment portfolios. Additionally, the spread on the portfolios were higher on account of an effective spread management strategy.” Net interest income for the quarter amounted to $1.85 billion versus $1.71 billion book for the corresponding quarter of 2016.

Fees and commission income amounted to $797.10 million, an improvement of 44% on the $554.29 million last year. According to the company, “there was significant growth in managed funds and collective investment schemes across the Group.” Foreign exchange margins from cambio trading recorded a decrease of 21% year over year to close at $544.70 million (2016: $689.34 million) while net gains from securities trading showed a decrease of 6% totaling $3.01 billion (2016: $3.19 billion).

Other income for the period totaled $56.63 million a 588% growth relative to $8.23 million. Dividend income for  the six months declined 27% to close at $12.81 million relative to $17.58 million.

Operating expenses amounted to $5.83 billion, a growth of 15% (2016: $5.08 billion) which led to an operating profit of $2.35 billion, a decrease when compared to the $2.64 billion booked the year prior. According to JMMBGL, “this was attributed primarily to costs associated with the transition of JMMB Merchant Bank to a commercial bank. Additionally, costs associated with the enhancement of our integrated Group sales and support framework was added during the course of the prior financial year, and the current reporting period reflect the full impact of these incremental cost.”

Following taxes of $680.94 million (2016: $610.69 million), JMMBGL booked an 18% contraction in net profit to $1.67 billion compared to $2.03 billion reported for the similar period of 2016.

Net profit attributable to the shareholders of the company totaled $1.67 billion relative to $2.02 billion in 2016, an 17% decline year over year. For the second quarter, JMMBGL booked net profit attributable to shareholders of $1.06 billion relative to $1.43 billion reported for the corresponding quarter of 2016.

As a result, earnings per share (EPS) for the six months amounted to $1.03 (2016: $1.24) while EPS for the quarter amounted to $0.658 (2016: $0.88). The twelve month trailing EPS amounted to $1.82 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 14, 2017 at $29.26.   

 

Balance Sheet at a glance:

Total assets as at September 30, 2017 amounted to $275.58 billion relative to $247.42 billion in 2016.  According to JMMBGL, “this was mainly on account of higher cash holdings as well as larger loan and investment portfolios. The investment portfolio increased by J$9.64 billion of 6% to J$182.13 billion, while net loans and advances grew by J$3.51 billion or 7% to J$50.6 billion. Also, the credit quality of the portfolio continues to perform well against international standards.”

Shareholders’ equity totaled $28.33 billion (2016: $26.55 billion). As a result, book value per share stood at $17.37 (2016: $16.28).

 

 

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.

 

 

 

 

2017-11-15T01:02:42+00:00