February 16, 2024

JMMB Group Limited (JMMBGL) for the Nine months ended December 31, 2023, reported a 15% increase in Interest income totalling $29.73 billion compared to $25.79 billion in the corresponding period last year. Interest income for the third quarter had a 10% increase to close at $10.20 billion compared to $9.29 billion for the comparable quarter of 2022.

Interest expense amounted to $23.34 billion (2022: $17.35 billion), this represents an increase of 35% year over year. Consequently, net interest income decreased by 24% to $6.39 billion compared to $8.44 billion for the Nine months ended December 31, 2022. The company booked net interest income of $2.23 billion for the third quarter versus $2.74 billion reported for the similar quarter of 2022.

Fees and commission income decreased by 10% to close at $3.89 billion (2022: $4.32 billion), while Gains on securities trading increased by 43% from $3.49 billion in 2022 to $5.01 billion in the period under review. As a result, operating revenue net of interest expense for the Nine months ended December 31, 2023, amounted to $17.60 billion, a 7% decrease relative to $18.90 billion reported in 2022.

Total Operating Expenses for the Nine months ended December 31, 2023, amounted to $16.48 billion, a 12% increase relative to $14.68 billion reported in 2022. Total Operating Expenses for the third quarter amounted to $5.51 billion (2022: $4.72 billion).

Operating profit totalled $1.12 billion, relative to operating profit of $4.22 billion from the corresponding period last year.

Share of profits of associate amounted to $16.26 billion (2022: Share loss of $2.61 billion).

Profit before Taxation for the Nine months ended December 31, 2023, amounted to $15.82 billion, an 8238% increase relative to $189.79 million reported in 2022. Profit before Taxation for the third quarter amounted to $14.51 billion (2022: $4.09 billion).

Tax credit for the Nine months ended December 31, 2023, amounted to $1.17 billion (2022: Tax charge of $197.57 million).

Net profit attributable to shareholders for the nine months amounted to $16.71 billion, relative to net loss of $245.09 million reported in 2022. For the third quarter, Net profit attributable to shareholders was $14.90 billion (2022: $3.97 billion).

Consequently, Earnings Per Share for the nine months amounted to $8.54 (2022: LPS: $0.13), while Earnings Per Share for the quarter totalled $7.62 (2022: EPS: $2.03). The twelve month trailing EPS was $11.82, and the number of shares used in these calculations was 1,955,552,532.

Notably, JMMBGL’s stock price closed the trading period on February 15, 2024, at a price of $26.37 with a corresponding P/E ratio of 2.23x.

Balance Sheet Highlights

The company’s assets totalled $725.97 billion (2022: $639.24 billion). The growth in total assets was attributed to ‘loans and notes receivables’ increasing 22% to $202.69 billion, ‘Investments and resale agreements’ growing 8% to $365.74 billion, and ‘interest in associated company’ trending up 44% to close at $51.01 billion.

Shareholder’s equity was $71.04 billion (2022: $46.72 billion), representing a book value per share of $36.33 (2022: $23.89).

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