Feb 2014 Financial News

JMMB posts higher profit

Feb 19, 2014

JAMAICA Money Market Brokers (JMMB) Group reported a 17 per cent increase in profit as it expanded its merchant banking operations and completed the purchase of a Trinidadian bank.

For the three months ended December 31, 2013, the company netted $751.9 million in earnings, up from $641.7 million during the corresponding period in the prior year.

Its net interest income grew by nine per cent, up from $1.2 billion in the comparative period to $1.4 billion during the quarter under review.

The performance increase was driven mainly by expanded business lines through acquisitions of Capital and Credit Financial Group Limited (CCFG) and Intercommercial Bank Limited and Intercommercial Trust and Merchant Bank Limited (IBL), coupled with effectively managing the Group's investment portfolio and cost of funds, the company said.

JMMB finalised the acquisition of the remaining 50 per cent of the share capital of IBL for US$8.75 million ($914.1 million), thereby becoming the 100 per cent shareholder of the Trinidadian bank.

During the last three months of 2013, JMMB also saw a rise in gains on securities, which was 40 per cent higher or $193 million more than the $477.8 million it saw in the comparative quarter in 2012.

Foreign exchange margins from its cambio operations significantly increased from $105 million to $177.7 million.

Indeed, integration costs of the commercial bank in Trinidad, as well as the merchant bank in Jamaica, pushed up the company's operating expenses.

JMMB incurred additional operating expenses during the review quarter spending $505.7 million more than the $1.1 billion it did year over year.

It said it continues to exceed its regulatory capital requirements. The company's capital to risk weighted assets ratio stood at 18.9 per cent, whereas the Financial Services Commission (FSC) benchmark stipulates a minimum of 10 per cent. The company's capital to total assets ratio was 12.7 per cent, whereas the FSC benchmark is six per cent.

"The group continues to transform and expand its business model while building core revenues and driving operational efficiency across diversified business lines locally and through our regional territories," said JMMB Group.

It added that it will continue to consolidate its recent acquisitions and roll out its integrated financial service business model to its markets in Jamaica, Dominican Republic and Trinidad and Tobago.

The principal activities of the company are securities brokering, securities trading, merchant banking, dealing in money market instruments, operating a foreign exchange cambio and managing funds on behalf of clients.


Source:
Jamaica Observer
Wednesday February 19, 2014

http://www.jamaicaobserver.com/business/JMMB-posts-higher-profit_16084365