Aug 2016 Financial News

JMMB Group revenue up

Aug 18, 2016

THE JMMB Group grew its operating revenue by 9.9 percent for the first quarter of the 2016/17 financial year ending June 30; moving from J$3.10 billion in the corresponding prior period to J$3.42 billion.

Trinidad and Tobago (T&T) has demonstrated evidence of the Group’s growth in revenue, and maximisation of brand synergies, having officially launched the rebranded JMMB Bank (T&T) in May.

Operations of subsidiaries in this country have reported a 32 percent increase (or J$150 million) in revenue, and continues to build out the integrated financial services model.

In speaking to the Group’s commitment to a regionally diversified strategy, Keith Duncan, JMMB Group CEO, notes, “Our focus remains on delivering long-term sustainable shareholder value, built on delivering our promise of financial partnership.

We (will) also continue to increase the Group’s revenues, as well as drive operational and brand synergies, across our diversified business lines.” In a bid to provide increased access to its clients and boost revenue-generating capabilities, the company is strengthening its digital services delivery channels and thus far, has expanded its electronic transaction network, electronic touch points and is looking to roll-out additional self-service applications; while also re-engineering some of its processes and boosting its sales force.

The regional financial entity, however, which also boasts of operations in Jamaica and Dominican Republic, reported a marginal decline in its net profit of approximately two percent, year-over-year moving from J$602.9 million to J$593.4 million.

This was attributable to start-up costs of J$98.28 million and further build-out of its business lines, particularly in the Dominican Republic, to include mutual fund administration and pension fund administration, through JMMB Sociedad Administradora de Fondos de Inversion, S.A. (JMMB SAFI) and JMMB AFP BDI S.A.

(JMMB AFP), which are in the incubatory stage of operations.

The Group’s operations in that country are now fully bolstered to provide a wider range of services, in line with the Group’s integrated financial services model.

As evidence of this expansion of offering’s, JMMB SAFI is set to raise US$3M through its first US$ Real Estate Closed Investment Trust (REIT) Fund between July 31 and August 18, and JMMB SAFI, which received regulatory approval in December 2015, so far, has J$393.02 million in funds under management.

Additionally, the Group’s operational expenses has been impacted by increased staff costs, attributable to the build out of its business model across the subsidiaries in the Group. These efforts are expected in the longterm to increase operational efficiency and create greater synergies across the Group.

In addition to the costs associated with the start-up and build out of the business model across the Group, asset tax also accounted for J$405.48 million of the J$2.58 billion operating expenses; which reflects an increase of J$8 million, over the comparative prior period.

Jamaica’s operations continue on a positive trajectory, contributing the lion’s share of the Group’s revenue, totalling J$2.53 billion.

While balancing increased operational expenses, the Group’s net interest income (NII) grew year-over-year by 7.6 percent, moving from J$1.44 billion to J$1.55 billion. This was attributable to the growth in investment and loan portfolios, while reducing the cost of funds across the territories.

In keeping with the strategic objective of increasing the Group’s suite of managed funds, across the subsidiaries, fees and commission increased by 56.3 percent.

Additionally, foreign exchange margins and cambio trading grew by 72.3 percent, to J$442.8 million, driven by market opportunity and activity volume.

Gains on securities trading, however, declined by 8 percent, relative to the comparative prior period, as a result of the inclusion of the J$500.6 million in oneoff gains.

At the end of the first quarter, the Group’s asset base grew by 10 percent, totalling J$244.92 billion.

In addition, the financial entity has maintained its capital adequacy, as reflected in the J$1.21 billion increase (five percent growth) in its capital base, thereby ending the period at J$23.57 billion.

Source:
Newsday
Thursday August 18, 2016

http://www.newsday.co.tt/business/0,232069.html