JMMB Group Limited (JMMBGL) for the three months ended June 30, 2017 booked net interest income of $1.91 billion compared to $1.55 billion in 2016, an increase of 24%. This as interest income grew by 9% to close at $3.96 billion, from the $3.62 billion booked in 2016, while interest expenses fell 1% to total $2.04 billion relative to $2.07 billion in the prior year. JMMBGL noted, “there was strong growth in the earning portfolios especially the loan portfolios across the Group. As such, yields were higher than the prior period and cost of funding was lower given the spread management strategy in place.”
Fees and commission income amounted to $363.83 million, an improvement of 22% on the $297.72 million last year’s comparable period. The improvement was due to, “significant growth in managed funds and collective investment schemes across the Group which contributed to the growth in fees and commission income,” according to the company. Foreign exchange margins from cambio trading posted a decrease of 46% year over year to close at $237.54 million (2016: $442.84 million), while net gains from securities trading showed an increase of 36% totaling $1.54 billion (2016: $1.13 billion). Management highlighted, “the portfolio trading strategies were very profitable and were supported by the maturities of GOJ debts, redemption of BOJ CDs as well as higher external demands for GOJ global bonds due to lower treasury yields in the US.” As such, net operating revenue amounted to $4.05 billion compared to $3.42 billion book for the first three month ended June 30, 2016. Management indicated, “this was on account of increases in all business lines with the exception of net foreign exchange trading.”
Dividend income for the quarter totaled $11.36 million, a decrease of 28% compared to a total of $15.69 million a year ago. Other income for the three months amounted to $36.42 million (2016: $1.21 million).
Operating expenses amounted to $3.11 billion, increasing by 21% (2016: $2.58 billion) which led to profit before taxation of $994.47 million, a significant increase when compared to the $857.04 million booked the year prior. The movement in operating expenses was due to costs associated with the transition of JMMB Merchant Bank to a commercial bank. the Group stated, “ 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 would reflect the first full year of cost.”
Following taxation of $381.08 million, 45% higher compared to the corresponding period in 2016, net profit amounted to $613.39 million compared to $593.38 billion in 2016.
Net profit attributable to the shareholders of the company totaled $616.54 million relative to $590.49 million recorded for the comparable period in 2016.
Earnings per share (EPS) for the first quarter amounted to $0.38 (2016: $0.36), the trailing twelve months earnings per share is $2.04 the number of units used in this calculation was 1,630,552,530.
JMMBGL noted, “The Group focused on executing the final leg of our commercial banking transition in Jamaica. In rolling out a full suite of products and services consistent with traditional commercial banking operations, the team’s core focus was on the implementation of a sound operational framework for the Bank. Subsequent to the review period, we secured final approval from the BOJ for transactional Moneyline for the Bank as well as Mandeville and Portmore branches which underwent extensive renovations to be able to offer full banking services and solutions. We continue to improve upon other locations in Jamaica responding to our clients need for full solutions and an excellent client experience.”
Balance Sheet at a glance:
Total assets as at June 30, 2017 amounted to $268.05 billion relative to $244.92 billion book for the corresponding period in 2016. The increase in the asset base was driven by a 49% or $11.71 billion increase in cash and cash equivalents to $35.53 billion (2016: $23.82 billion). Notably, loans and notes receivables also increased, moving from $40.34 billion in 2016 to $48.25 billion as at June 30, 2017.
Shareholders’ equity totaled $26.80 billion (2016: $23.57 billion). As a result, book value per share stood at $16.44 (2016: $14.45).
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