JMMBGL reports 52% increase in year end net profit attributable to shareholders

June 2, 2022

JMMB Group Limited (JMMBGL) for the year ended March 31, 2022, recorded net interest income of $11.58 billion, an 11% increase when compared with $10.46 billion recorded for the corresponding period in 2021. Interest income for the year amounted to $27.13 billion compared to $22.12 billion reported in 2021. Interest expenses increased 33% to total $15.56 billion relative to the $11.66 billion recorded for the same period in 2021. Net interest income for the quarter amounted to $2.59 billion, a 10% decrease when compared with the $2.88 billion recorded for the same period in 2021.

Fees earned from managing funds on behalf of clients amounted to $2.03 billion versus $1.49 billion recorded the prior year. Gains on securities trading climbed 8% to total $7.32 billion (2021: $6.79 billion).

Foreign exchange margins from cambio trading rose 34%, totalling $2.59 billion (2021: $1.93 billion). While, net income from financial assets at fair value through profit or loss (FVTPL) closed at $133.28 million relative to $47.09 million at the end of the 2021FY.

Operating revenue net of interest expenses amounted to $26.64 billion (2021: $22.44 billion), a growth of 19% year over year. Total other income amounted to $167.89 million from $178.44 million booked at the end of 2021FY, the following contributed to total other income;

    • Dividend income closed at $141.89 million (2021: $121.12 million), reflecting a 17% increase year over year.
    • Other income amounted $26 million (2021: $57.31 million) at the end of March 2022.

Staff costs recorded a 29% increase to $10.34 billion (2021: $8.01 billion), while other expenses closed at $8.17 billion (2021: $6.52 billion).

As a result, operating profit amounted to $8.30 billion, up 3% when compared to the $8.09 billion reported in 2021.

Impairment loss on financial assets decreased from $2.01 billion to $1.93 billion at the end of the 2022FY.

Gain on acquisition of associate was $4.63 million versus a loss on acquisition of associate of $8.19 million in 2021FY.

Share of profit of associated company amounted to $5.08 billion (2021: $1.88 billion). As such, JMMBGL recorded a profit before taxation of $11.45 billion, a 44% increase over the $7.96 billion recorded for the corresponding period in 2021. As for the quarter, profit before taxation closed at $1.38 billion (2021: $2.92 billion), a 53% decrease. Tax credit for the period amounted to $570.72 million, compared with a taxation of $242.20 million incurred in 2021.

Consequently, JMMBGL booked a 56% increase in net profit for the year to total $12.02 billion compared to $7.72 billion reported for 2021. Net profit for the quarter amounted to $3.19 billion, relative to the $3.70 billion reported for the same quarter of 2021.

Net profit attributable to the shareholders of the company totalled $11.44 billion relative to $7.51 billion in 2021, a 52% increase year over year. However, JMMBGL posted total comprehensive loss of $3.23 billion compared to an income of $20.52 billion in 2021.

As a result, earnings per share (EPS) for the financial year amounted to $5.85 (2021: $3.84), while EPS for the quarter amounted to $1.62 (2021: $1.87). The number of shares used in the calculations amounted to 1,955,552,532 units. Notably, JMMBGL’s stock price closed trading on June 1, 2022, at $46.50 at corresponding P/E at 7.95 times.

Balance Sheet at a glance:

Total assets as at March 31, 2022 amounted to $614.47 billion relative to $513.71 billion in 2021. The movement was due to an increase in ‘Investment securities’ to close at $332.08 billion (2021: $262.39 billion) and growth in ‘Loans and notes receivables’ which closed at $142.71 billion (2021: $119.46 billion). ‘Interest in associated companies’ also contributed to the increase in the asset base closing at $42.78 billion (2021: $38.93 billion).

Shareholders ‘equity totalled $54.93 billion (2021: $59.65 billion). As a result, book value per share stood at $28.09 (2021: $30.50).


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.