May 31, 2018
JMMB Group Limited (JMMBGL) for the year ended March 31, 2018 recorded net interest income of $7.74 billion, a 14% or $972.83 million increase when compared with $6.77 billion recorded for the corresponding period in 2017. Interest income for the year increase 8% to close at $15.88 billion, relative to $14.71 billion recorded last year. Interest expenses increased 2% to total $8.14 billion relative to the $7.94 billion recorded for the same period in 2017. Net interest income for the quarter amounted to $2.08 billion, a 22% increase when compared with the $1.70 billion recorded for the same quarter in 2017.
Fees and commission income for the year amounted to $1.19 billion, an improvement of 29% on the $918.30 million recorded last year. Foreign exchange margins from cambio trading also recorded an increase of 11% year over year to close at $1.35 billion (2017: $1.22 billion).Net gains from securities trading however decreased 9%, to total $4.87 billion (2017: $5.38 billion). In addition, the Company reported an 87% increase on Fees earned on managing funds on behalf of clients, to total $690.42 million up from $369.01 million recorded in 2017.
Other income for the period totaled $70.60 million relative to the $12.17 million booked for 2017. Dividend income for the year end declined 24% to close at $23.68 million relative to $31.26 million recorded for the same period in 2017.
Operating expenses amounted to $11.44 billion, a growth of 10% (2017: $10.45 billion) which led to an operating profit of $4.50 billion, up 6% or $249.02 million when compared to the $4.25 billion booked the year prior. Of expenses, staff costs rose 12% to $6.02 billion (2017: $5.39 billion), while other expenses increased 7% to $5.42 billion (2017: $5.06 billion).
JMMBGL recorded an impairment loss on financial assets of $143.98 million, a gross increase of 1546% (2017: $8.74 million) compared to last year. No Loss on acquisition of net assets of overseas entity was recorded for the period relative to the loss of $87.65 million in 2017. However, gains on disposal of property, plant and equipment of $686,000 was booked for the period (2017: $5.18 million).
Profit before taxation for the year amounted of $4.35 billion, a 5% increase over the $4.16 million recorded for the corresponding period in 2017. Taxation for the period amounted to $748.59 million, 7% less when compared with the $805.52 million recorded for the same period for 2017.
Consequently, JMMBGL booked an 8% improvement in net profit for the period to total $3.60 billion compared to $3.35 billion reported for the similar period of 2017. Net profit for the quarter amounted to $1.03 billion a 54% increase relative to the $667.11 million reported for the same period 2017.
Net profit attributable to the shareholders of the company totalled $3.56 billion relative to $3.31 billion in 2017, a 7% increase year over year. For the quarter, JMMBGL booked net profit attributable to shareholders of $1.01 billion relative to $662.56 million reported for the corresponding quarter of 2017.
As a result, earnings per share (EPS) for the year ended March 31, 2018 amounted to $2.18 (2017: $2.03) while EPS for the quarter amounted to $0.62 (2017: $0.0.41). The number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on May 30, 2018, at $27.56.
Balance Sheet at a glance:
Total assets as at March 31, 2018 amounted to $291.71 billion relative to $251.56 billion in 2017. This was primarily due to a 14% increase in Investment Securities from $171.57 billion in 2017 to $194.90 billion as well as an 18% increase in Loans and notes receivables from $47.13 billion in 2017 to $55.63 billion.Shareholders ‘equity totalled $27.91 billion (2017: $25.91 billion). As a result, book value per share stood at $17.12 (2017: $15.89).
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.