JMMBGL reports 39% increase in third quarter net profit

February 13, 2018. 

JMMB Group Limited (JMMBGL) for the nine months ended December 31, 2017 recorded net interest income of $5.66 billion, a 12% or $593.92 million increase when compared with $5.07 billion recorded for the corresponding period in 2016. Interest expenses increased 7% to total $6.07 billion relative to the $5.65 billion recorded for the same period in 2016. 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 $1.90 billion, a 5.2% increase when compared with the $1.81 billion recorded for the same period in 2016.

Fees and commission income for the period amounted to $1.31 billion, an improvement of 53% on the $857.65 million recorded last year as the company noted “there was significant growth in managed funds and collective investment schemes across the Group”. Foreign exchange margins from cambio trading recorded a decrease of 4% year over year to close at $891.63 million (2016: $931.02 million) as the company noted “as in the prior period the Group benefitted from a one-off market opportunity.” Net gains from securities trading showed an increase of 5%, to total $4.39 billion (2016: $4.17 billion) “on account of increased regional market opportunities.”

Other income for the period totaled $67.49 million; there was no other income recorded for the period in 2016. Dividend income for the nine months declined 48% to close at $15.44 million relative to $29.79 million recorded for the same period in 2016.

Operating expenses amounted to $8.71 billion, a growth of 14% (2016: $7.62 billion) which led to an operating profit of $3.57 billion, an increase of 4% or $128.47 million when compared to the $3.44 billion booked the year prior.

JMMBGL recorded an impairment loss on financial assets of $143.98 million. This resulted in a profit before taxation amount of $3.49 million, a 2% increase over the $3.44 million recorded for the corresponding period in 2016. Taxation for the period amounted to $915.21 million a 21% increase compared with the $757.92 million recorded for the  same period for 2016.

Consequently, JMMBGL booked a 4% contraction in net profit for the period to total $2.58 billion compared to $2.68 billion reported for the similar period of 2016. Net profit for the quarter amounted to $908.9 million a 39% increase relative to the $653.23 million reported for the same period 2016.

Net profit attributable to the shareholders of the company totalled $2.54 billion relative to $2.65 billion in 2016, a 4% decline year over year. For the quarter, JMMBGL booked net profit attributable to shareholders of $871.12 million relative to $628.16 million reported for the corresponding quarter of 2016.

As a result, earnings per share (EPS) for the nine months amounted to $1.56 (2016: $1.63) while EPS for the quarter amounted to $0.53 (2016: $0.39). The twelve-month trailing EPS amounted to $1.97 where the number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on February 13, 2017, at $24.84.

Balance Sheet at a glance:

Total assets as at December 31, 2107 amounted to $270.53 billion relative to $253.81 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$9.61 billion or 6% to J$182.09 billion, while net loans and advances grew by J$6.57 billion or 14% to J$53.71 billion. Also, the credit quality of the portfolio continues to perform well against international standards.”

Shareholders ‘equity totalled $28.4 billion (2016: $24.43 billion). As a result, book value per share stood at $17.42 (2016: $14.99).


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