Aug 2016 Financial News

JMMB Group first quarter revenue grows

Aug 19, 2016

KINGSTON, Jamaica—The JMMB Group grew its operating revenue by 9.9 per cent, 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. 

The regional financial entity, however, which boasts operations in Jamaica, T&T and Dominican Republic, reported a marginal decline in its net profit of approximately two per cent 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, SA (JMMB SAFI) and JMMB AFP BDI SA (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 offerings, 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 have 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 long-term 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—an increase of J$8 million over the comparative prior period. 

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 the twin island republic have reported a 32 per cent increase (or J$150 million) in revenue, and continues to build out the integrated financial services model. 

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

While balancing increased operational expenses, the group’s net interest income grew year-over-year by 7.6 per cent, 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 per cent. 

Additionally, foreign exchange margins and cambio trading grew by 72.3 per cent, to J$442.8 million, driven by market opportunity and activity volume. Gains on securities trading, however, declined by eight per cent, relative to the comparative prior period, as a result of the inclusion of the J$500.6 million in one-off gains.

Source:
Trinidad Guardian
Friday August 19, 2016

http://www.guardian.co.tt/business/2016-08-19/jmmb-group-first-quarter-revenue-grows