Feb 2015 Financial News

T&T’s IBL boosts JMMB’s growth

Feb 23, 2015

Acquisition of the T&T-based Intercommercial Bank Limited (IBL) in October 2013 contributed to positive growth for the JMMB Group last year. The group’s latest financial report, published on the T&T Stock Exchange, showed that JMMB posted a net profit of J$1.95 billion and earnings per share of J$1.14 for the nine month period ended December 31, 2014. 

Operating revenues grew to J$7.8 billion reflecting an 18.1 per cent increase over prior period, mainly driven by expansion of the group through its acquisitions. Net interest income (NII) showed positive growth year-over-year moving from J$3.83 billion to J$4.10 billion, an increase of J$270.3 million or 7.1 per cent, which was the result of expanded business lines through the acquisition of IBL in October 2013, coupled with effectively managing the group’s investment portfolio and cost of funds. 

The group reported: “Other operating revenues, namely, gains on securities trading, foreign exchange margins from cambio trading, and commission income also reflected increases of 25.2 per cent, 78.5 per cent and 30.7 per cent respectively, these were driven largely by volume increases and taking advantage of market opportunities.

“Our operations in the Dominican Republic continue to produce positive results contributing J$507.9 million to the group and in Trinidad & Tobago, IBL contributed J$162.4 million to the group’s earnings.” JMMB’s operating expenses increased from J$3.99 billion to J$5.45 billion and expenses associated with the expansion of the group through acquisition of IBL and AIC Securities accounted for J$795.8 million (54.6 per cent) of this increase. 

The remaining J$662.4 (45.4 per cent) is attributable to costs associated with integration, growth in subsidiaries in the regional markets, increase in asset tax and normal inflationary increases. “One of the effects of the increase in operating costs was that the group’s efficiency ratio (administrative costs as a percentage of operating revenue) moved from 60.4 per cent in 2013 to 69.9 per cent,” JMMB said. 

“Management is taking medium to long term measures to correct this increase, mainly through extracting synergies from its recent acquisitions through its integrated financial services model across regional territories. Group revenues outside of Jamaica contributed 30 per cent to JMMB’s results as at December 31, 2014. The group said it will continue to focus on long term sustainable growth and further enhancement of shareholder value.

Source:
Trinidad Guardian
Monday February 23, 2015

http://www.guardian.co.tt/business/2015-02-23/tt%E2%80%99s-ibl-boosts-jmmb%E2%80%99s-growth