June 15, 2021
JMMB Group Limited (JMMBGL) for the year ended March 31, 2021, recorded net interest income of $10.46 billion, a 13% increase when compared with $9.28 billion recorded for the corresponding period in 2020. Interest income for the year amounted to $22.12 billion compared to $19.69 billion reported in 2020. Interest expenses increased 12% to total $11.66 billion relative to the $10.41 billion recorded for the same period in 2020. Net interest income for the quarter amounted to $2.88 billion, a 27% increase when compared with the $2.26 billion recorded for the same period in 2020.
Fees earned from managing funds on behalf of clients amounted to $1.49 billion versus $1.41 billion recorded the prior year. Gains on securities trading climbed 10% to total $6.79 billion (2020: $6.17 billion).
Foreign exchange margins from cambio trading fell 31%, totalling $1.93 billion (2020: $2.81 billion). While, net income from financial assets at fair value through profit or loss (FVTPL) closed at $47.09 million relative to a loss of $267.98 million at the end of the 2020FY.
Operating revenue net of interest expenses amounted to $22.44 billion (2020: $21.52 billion), a growth of 4% year over year. Total other income amounted to $178.44 million from $55.46 million booked at the end of 2020FY, the following contributed to total other income;
Dividend income closed at $121.12 million (2020: $48.46 million), reflecting a 150% increase year over year.
Other income amounted $57.31 million (2020: $7 million) at the end of March 2021.
Staff costs recorded a 15% decline to $8.01 billion (2020: $9.42 billion), while other expenses closed at $6.52 billion (2020: $6.51 billion).
As a result, operating profit amounted to $8.09 billion, up 43% when compared to the $5.64 billion reported in 2020.
Impairment loss on financial assets increased from $1.41 billion to $2.01 billion at the end of the 2021FY.
No gain on acquisition of associate was recorded versus a gain on acquisition of associate of $2.80 billion in 2020FY.
Share of profit of associated company amounted to $1.88 billion (2020: $195.21 million). As such, JMMBGL recorded a profit before taxation of $7.96 billion, a 10% increase over the $7.22 billion recorded for the corresponding period in 2020. As for the quarter, profit before taxation closed at $2.92 billion (2020: $1.42 billion), a 105% increase. Taxation for the period amounted to $242.20 million, a 61% increase compared with the $150.04 million incurred in 2020.
Consequently, JMMBGL booked a 6% increase in net profit for the year to total $7.72 billion compared to $7.07 billion reported for 2020. Net profit for the quarter amounted to $3.70 billion, relative to the $3.06 billion reported for the same quarter of 2020.
Net profit attributable to the shareholders of the company totalled $7.51 billion relative to $6.99 billion in 2020, a 7% increase year over year. However, JMMBGL posted total comprehensive profit of $19.91 billion compared to a loss of $1.22 billion in 2020.
As a result, earnings per share (EPS) for the financial year amounted to $3.84 (2020: $3.58), while EPS for the quarter amounted to $1.87 (2020: $1.57). The number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on June 15, 2021 at $33.81 at corresponding P/E at 8.81 times.
Balance Sheet at a glance:
Total assets as at March 31, 2021 amounted to $513.71 billion relative to $399.70 billion in 2020. The movement was due to an increase in ‘Investment securities’ to close at $262.39 billion (2020: $192.27 billion) and growth in ‘Loans and notes receivables’ which closed at $119.46 billion (2020: $98.84 billion). ‘Cash and cash equivalents’ also contributed to the increase in the asset base closing at $67.29 billion (2020: $42.64 billion).
Shareholders ‘equity totalled $59.65 billion (2020: $40.23 billion). As a result, book value per share stood at $30.50 (2020: $20.57).
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