Date: August 14, 2018
JMMB Group Limited – (JMMBGL) for the three months ended June 30, 2018 booked Net interest income of $2.07 billion compared to $1.91 billion in 2017, an increase of 8%. Of this, Interest income grew by 7% to close at $4.24 billion, from the $3.96 billion booked in 2017, while interest expenses increased by 6% to total $2.17 billion relative to $2.04 billion in the prior year. JMMBGL highlighted that, “there was strong growth in the loan and investment portfolios.”
Fees and commission income for the quarter amounted to $481.64 million, an improvement of 32% on the $363.83 million last year’s corresponding period. According to the company, this was, “due to significant growth in managed funds and collective investment schemes across the Group.” Foreign exchange margins from cambio trading recorded an increase of 117% year over year to close the quarter at $514.65 million (2017: $237.54 million), while net gains from securities trading showed an increase of 4% totalling $1.60 billion (2017: $1.54 billion).
Other income for the period totalled $5.34 million a 85% contraction relative to $36.42 million reported for the corresponding period in 2017. Dividend income for the three months also declined 60% to close at $4.58 million relative to $11.33 million in 2017’s first quarter.
Operating expenses amounted to $3.34 billion, a growth of 11% (2017: $3.00 billion) which led to an operating profit of $1.21 billion, an increase when compared to the $958.05 billion booked the year prior. According to JMMBGL, “This was attributed primarily to costs associated with our integrated Group sales and support framework coupled with the continued build-out of commercial banking services in Jamaica. The Group will continue to focus on extracting operational efficiency from all entities through the launch of its standardization and process improvements project.”
Following taxes of $258.88 million (2017: $381.07 million), JMMBGL booked a 56% increase in net profit to $956.61 million compared to $6133.39 million reported for the similar period of 2017.
Net profit attributable to the shareholders of the company totalled $935.90 million relative to $616.54 million in 2017, a 52% improvement year over year.
As a result, earnings per share (EPS) for the three months amounted to $0.57 (2017: $0.38).The twelve month trailing EPS amounted to $2.38 where the number of shares used in the calculations amounted to 1,630,552,530 units. Notably, JMMBGL’s stock price closed trading on August 14, 2018 at $29.04.
The Company noted, “We are pleased with our Q1 performance as net profit exceeded expectation. We also advanced three (3) strategic projects which will expand online services in the Dominican Republic, improve banking services in Jamaica and standardise client experience across the Group.”
Balance Sheet at a glance:
Total assets as at June 30, 2018 amounted to $314.69 billion relative to $268.05 billion in 2017. According to JMMBGL, “This was mainly on account of higher cash holdings as well as larger loan and investment portfolios. During this quarter, the investment portfolio increased by J$10.56 billion or 5% to J$206.59 billion, while loans and advances grew by J$4.31 billion or 8% to J$59.93 billion. The credit quality of the loan portfolio continues to be comparable to international standards.”
Shareholders’ equity totalled $25.25 billion (2017: $25.94 billion). As a result, book value per share stood at $15.48 (2017: $15.91).
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