May 2006 Financial News

JMMB Releases Unaudited Year End Results

May 16, 2006

All figures quoted in Jamaican Dollars

In its unaudited results for the year ended Mar 31, 2006 JMMB reported Earnings Per Share (EPS) of $1.17 up 3.54 per cent from 2005's EPS of $1.13.

Net Interest Income rose minimally 1.96 per cent to $1.949 billion. Operating Revenue Net of Interest Expense rose 5.50 per cent to $2.708 billion as Gains on Securities Trading, Fees & Commissions and Foreign Exchange Margins from Cambio Trading increase by 7.18 per cent, 17.55 per cent and 185.92 per cent respectively. Gains on Securities Trading grew moderately due to the fact that JMMB's subsidiary, JMMB Securities Limited was affected by the continued decline in the equities markets leading to unrealized losses in its equity portfolio. Administrative expenses increased 22.89 per cent resulting in a 9.91 per cent decrease in Operating Profit from $1.361 billion in 2005 to $1.226 billion in 2006.

Other Income increased 53.75 per cent driven by a 55.78 per cent increase in Share of Profits from Associated Companies. Ultimately, Profit Before tax was up 4.68 per cent to $1.848 billion while Profit After Tax rose 3.83 per cent to $1.715 billion.

At the current price of TT$1.23, JMMB is trading at a price/earnings ratio of 11.18. Over the past 52 weeks, this share has traded as high as TT$1.85 and as low as TT$1.15. In Jamaica it has traded as high as $18.20 and as low as $10.65. Given that this share usually trades within a 10 to 12 trading band, we currently recommend a HOLD on this share.

Sreshtha Tewari
WISE Research Team