August 15, 2024
JMMB Group Limited (JMMBGL) for the first quarter ended June 30, 2024, reported a 3% increase in interest income totalling $10.19 billion compared to $9.85 billion in the corresponding three months last year.
Interest expense amounted to $7.48 billion (2023: $7.32 billion), this represents an increase of 2% year over year. Consequently, net interest income increased by 7% to $2.70 billion compared to $2.53 billion for the first quarter ended June 30, 2023.
Fees and commission income decreased by 9% to close at $1.26 billion (2023: $1.39 billion), while Gains on securities trading, net decreased by 45% from $2.36 billion in 2023 to $1.30 billion for the three months. As a result, Operating revenue net of interest expense for the first quarter amounted to $5.66 billion, a 19% decrease relative to $7.02 billion reported in 2023.
Total Operating Expenses for the three months amounted to $6.36 billion, a 9% increase relative to $5.82 billion reported in 2023. As such, Operating loss totalled $697.03 million, down 158% from the corresponding period last year. (2023: profit of $1.21 billion).
Gains on sale of capital assets amounted to $1.27 billion (2023: nil), while share of loss of associate totalled $1.48 billion relative to profit of $1.73 billion reported in 2023. As a result, Loss before Taxation for the first quarter ended June 30, 2024, amounted to $1.58 billion, relative to profit before taxation of $2.03 billion reported in 2023.
Taxation for the three months had an 80% decrease to reach $104.61 million (2023: $520.29 million). As such, net profit decreased from $2.55 billion in 2023 to net loss of $1.47 billion in the period under review.
Net loss attributable to shareholders for the three months amounted to $1.54 billion (2023: Profit of $2.50 billion).
Consequently, Loss Per Share for the three months amounted to $0.79 (2023: EPS: $1.28). The twelve-month trailing EPS was $3.83, and the number of shares used in these calculations was 1,955,552,532.
Notably, JMMBGL’s stock price closed the trading period on August 14, 2024, at a price of $23.20 with a corresponding P/E ratio of 6.06x.
Balance Sheet Highlights
The company’s assets totalled $680.08 billion (2023: $679.60 billion). Management highlighted, “Notably, the loan portfolio grew by 3% to J$205 billion and the credit quality of the loan portfolio continued to be comparable to international standards and the Group continues to maintain enhanced monitoring to mitigate against possible deterioration in credit quality.”
Shareholder’s equity was $48.96 billion (2023: $54.31 billion), representing a book value per share of $25.03 (2023: $27.77).
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