Feb 2012 Financial News

JMMB profits jump by over 100%

Feb 17, 2012

JMMB posts net profit of J$1.79 billion for the nine month period

Local integrated finance house Jamaica Money Market Brokers (JMMB) put in a sterling financial performance for the nine-month period ended 31 December, 2011.

According to its published unaudited financial statements, JMMB's total revenue for the period under review came to J$8.65 billion, a significant increase on the J$8 billion posted for the same period in 2010. Its net profit came in at J$1.79 billion, a whopping 110 per cent increase on the J$854.2 million registered for the corresponding period last year. Operating profit was up by 119.7 per cent. For the nine month period, net interest income showed positive growth year-over-year moving from J$1.76 billion to J$2.59 billion, an increase of 47.4 per cent. Fees and commission income jumped to J$177.245 million, some J$44 million more than the J$133.500 million posted for 2010.

Other operating revenue, namely gains from securities trading and other income also reflected increases of 78.7 per cent and 32.8 per cent respectively which were driven largely by increased volume activity.

JMMB's assets largely consisting of investments and resale agreements moved from J$116 billion for the same nine month period to J$121 billion for the same period in 2011. Net cash flows provided by operating activities came in at an impressive J$9.290 billion. That's more than three times the J$3.614 billion posted for the nine -month period in 2010.

The Group saw a significant 17 per cent increase in operating expenses which came to J$2.181 billion for the period under review. This compares with J$1.862 billion for the nine-month period of 2010.Seeking to explain this jump in operating expenses, JMMB said in its income statement: "Consistent with JMMB's strategic imperatives, performance management plays a critical role in sustained business growth. As such, given the strong performance of the company, an incentive of J$64.4 million was paid to staff in the third quarter for their continued commitment to excellence. This reward, coupled with costs relating to legal and professional fees of J$53.6 million in support of strategic initiatives, accounted for the 17 per cent increase in operating expenses to J$2.18 billion compared to J$1.86 billion for the prior year.

" However, despite this increase in expenses, our efficiency ratio ( administrative costs as a percentage of operating revenue) improved to 49.7 per cent from 65 per cent when compared to the corresponding period as we continue to tightly manage the company's efficiency."

JMMB's earnings per share for the nine-month period 2011 rose to J$1.21 a significant jump of J$0.64 on the J$0.57 posted for the same period in 2010.

Speaking with Caribbean Business Report yesterday, JMMB's Group CEO Keith Duncan said: "All lines of business did well which redounds to the significant numbers you are seeing. Fixed income and securities continues to do very well. The active trading of bonds for individual clients and proprietary portfolios is encouraging and we are seeing an increase in volumes traded. Our portfolio management services have gained significant traction.

"In this low interest rate environment we are focused on providing value for our clients and hence we are actively trading bonds and equities. Our insurance brokerage is doing very well and we are proud of that business line. Another performer continues to be our credit business line. We will continue to grow the business and implement operational efficiencies."


Source:
Al Edwards
Jamaica Observer
Friday February 17, 2012

http://www.jamaicaobserver.com/business/JMMB-profits-jump-by-over-100-_10802894#ixzz1meJfSLiH