July 15, 2020
JMMB Group Limited (JMMBGL) for the year ended March 31, 2020, recorded net interest income of $9.28 billion, a 5% increase when compared with $8.84 billion recorded for the corresponding period in 2019. Interest income for the year amounted to $19.69 billion compared to $17.58 billion reported in 2019. Interest expenses increased 19% to total $10.41 billion relative to the $8.75 billion recorded for the same period in 2019. Net interest income for the quarter amounted to $2.26 billion, a 4% increase when compared with the $2.16 billion recorded for the same period in 2019.
Fees earned from managing funds on behalf of clients amounted to $1.42 billion versus $1.14 billion recorded the prior year. Net gains from securities trading climbed 51%, to total $6.17 billion (2019: $4.10 billion).
Foreign exchange margins from cambio trading advanced 17%, totalling $2.81 billion (2019: $2.40 billion). While, net loss from financial assets at fair value through profit or loss (FVTPL) closed at $267.98 million relative to a gain of $130.18 million at the end of the 2019FY.
Operating revenue net of interest expenses amounted to $21.52 billion (2019: $18.04 billion), a growth of 19% year over year. Total other income declined 44% to $55.46 million from $99.79 million booked at the end of 2019FY, the following contributed to total other income;
Dividend income closed at $48.46 million (2019: $54.85 million), reflecting a 12% decline year over year.
Other income decreased by 84% to $7 million (2019: $54.85 million) at the end of March 2020.
Staff costs recorded a 32% growth to $9.42 billion (2019: $7.13 billion), while other expenses closed at $6.51 billion (2019: $5.86 billion). Impairment loss on financial assets increased from $278.62 million to $1.41 billion at the end of the 2020FY.
As a result, operating profit amounted to $5.64 billion, up 10% when compared to the 5.15 billion reported in 2019. As for the quarter, operating loss closed at $150.17 million relative to an operating profit of $1.09 billion booked at the end of 2019FY.
JMMBGL recorded a gain on acquisition of associate of $2.80 billion (2019: nil). Share of profit of associated company amounted to $195.21 million (2019: nil), while loss on disposal of property, plant and equipment of $14.36 million was reported compared to gain of $2.21 million recorded in the same period last year. As such, JMMBGL recorded a profit before taxation of $7.22 billion, a 48% increase over the $4.87 billion recorded for the corresponding period in 2019. As for the quarter, profit before taxation closed at $1.42 billion (2019: $780.78 million), an 82% increase. Taxation for the period amounted to $150.04 million, an 85% decrease compared with the $1 billion incurred in 2019.
Consequently, JMMBGL booked an 83% increase in net profit for the year to total $7.07 billion compared to $3.87 billion reported for 2019. Net profit for the quarter amounted to $3.06 billion, relative to the $849.64 million reported for the same quarter of 2019.
Net profit attributable to the shareholders of the company totalled $6.99 billion relative to $3.82 billion in 2019, an 83% increase year over year. However, JMMBGL posted total comprehensive losses of $1.35 billion compared to an income of $3.32 billion in 2019. Total comprehensive loss attributable to shareholders amounted to $1.22 billion relative to comprehensive income of $3.38 billion posted in 2019.
As a result, earnings per share (EPS) for the financial year amounted to $3.58 (2019: $1.95), while EPS for the quarter amounted to $1.57 (2019: $0.43). The number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on July 15, 2020 at $31.70.
Balance Sheet at a glance:
Total assets as at March 31, 2020 amounted to $400.22 billion relative to $320.04 billion in 2019. The movement was due to an increase in ‘Interest in associated companies’ to close at $35.01 billion (2019: nil) and growth in ‘Loans and notes receivables’ which closed at $98.84 billion (2019: $67.95 billion). ‘Cash and cash equivalents’ also contributed to the increase in the asset base closing at $42.64 billion (2019: $30.73 billion).
Shareholders ‘equity totalled $40.23 billion (2019: $30.07billion). As a result, book value per share stood at $20.57 (2019: $15.37).
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