July 10, 2023
JMMB Group Limited (JMMBGL) for the year ended March 31, 2023, recorded net interest income of $11.18 billion, a 5% decrease when compared with $11.80 billion recorded for the corresponding period in 2022. Interest income for the year amounted to $36.06 billion compared to $27.36 billion reported in 2022. Interest expenses increased 60% to total $24.89 billion relative to the $15.56 billion recorded for the same period in 2022. Net interest income for the quarter amounted to $2.74 billion, a 3% decrease when compared with the $2.82 billion recorded for the same period in 2022.
Fees earned from managing funds on behalf of clients amounted to $2.08 billion versus $2.03 billion recorded the prior year. Gains on securities trading declined 52% to $3.51 billion (2022: $7.32 billion).
Foreign exchange margins from Cambio trading rose 26%, totalling $3.25 billion (2022: $2.59 billion), While net loss from financial assets at fair value through profit or loss (FVTPL) closed at $400.36 million relative to net income of $58.48 million at the end of the 2022FY.
Operating revenue net of interest expenses amounted to $23.38 billion (2022: $26.55 billion), a decline of 12% year over year. This is also inclusive of 36% increase in dividend income, closing at $193.03 million (2022: $141.89 million). Total other income amounted to $112.09 million from $26 million booked at the end of 2022FY, reflecting a 331% jump.
Staff costs marginally increased to $10.47 billion from $10.34 billion booked at the end of 2022FY, while other expenses were up 16% to $9.45 billion (2022: $8.17 billion).
As a result, operating profit amounted to $3.58 billion, down 56% when compared to the $8.07 billion reported in 2022.
Impairment loss on financial assets decreased from $1.93 billion in 2022FY to $1.56 billion at the end of the 2023FY.
Gain on disposal of property plant and equipment increased 63% to close at $7.56 million versus 2022FY gain of $4.63 million.
Share of Profit of associated company amounted to $2.67 billion (2022: $5.08 billion). As such, JMMBGL recorded a profit before taxation of $4.63 billion, a 59% decrease over the $11.22 billion recorded for the corresponding period in 2021. As for the quarter, there was a loss before taxation totalling $332.07 million (2022: Profit of $1.15 billion). Tax credit for the period amounted to $1.65 billion, a huge 333% increase relative to a tax credit of $379.95 million recorded in 2022.
Consequently, JMMBGL booked a 46% decrease in net profit for the year to close $6.28 billion compared to $11.60 billion reported for 2022. Net profit for the quarter amounted to $1.51 billion, relative to the $2.77 billion reported for the same quarter of 2022.
Net profit attributable to the shareholders of the company totalled $6.17 billion relative to $11.02 billion in 2022, a 44% decline year over year. Additionally, JMMBGL posted total comprehensive loss of $872.22 million compared to a loss of $3.65 billion in 2022.
As a result, earnings per share (EPS) for the financial year amounted to $3.15 (2022: $5.64), while EPS for the quarter amounted to $0.84 (2022: $1.40). The number of shares used in the calculations amounted to 1,955,552,532 units. Notably, JMMBGL’s stock price closed trading on July 10, 2023, at $29.20 at corresponding P/E at 9.26 times.
Balance Sheet at a glance:
Total assets as at March 31, 2023 amounted to $665.35 billion relative to $613.29 billion in 2022. The movement was due to an increase in ‘Investment securities’ to close at $342.48 billion (2022: $332.08 billion) and growth in ‘Loans and notes receivables’ which closed at $177.98 billion (2022: $141.90 billion). ‘Interest in associated companies’ also contributed to the increase in the asset base closing at $40.38 billion (2022: $42.78 billion).
Shareholders ‘equity totalled $53.33 billion (2022: $54.12 billion). As a result, book value per share stood at $27.27 (2022: $27.68).
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