JMMB Q3 net profit up
JMMB Group Limited with operations in Jamaica, Dominican Republic, Trinidad and Tobago posted higher profit for its third quarter ended December 2017 but nine-months results are still lower.
“During the third quarter, results produced across the JMMB Group continue to demonstrate the prudence of our strategies to systematically execute on our regional integrated financial services business model. Jamaica’s focus remained on operationalizing our commercial bank and maximizing our cross-selling efforts across the Group,” said group CEO Keith Duncan.
The group posted net profit after tax of $908.9 million in the December third quarter 2017. This represented growth of 39 per cent when compared to the similar quarter a year earlier. Revenues for the quarter also grew to $1.9 billion from $1.8 billion when compared with a year earlier.
Over nine months JMMB posted net profit of $2.58 billion or 3.9 per cent less than the corresponding period a year ago. Revenues however grew 11 per cent to $12.3 billion for nine months due to increases in net interest income, trading gains and fees and commission income.
Financial and related services continued to be the leading contributor to net operating revenue at $8.23 billion which represented an 11 per cent increase over the $7.39 billion recorded in the prior period.
This improvement was due mainly to growth in trading gains, asset management fees as well as net interest income. The banking performance of $3.86 billion reflected a 10 per cent increase, up from $3.52 billion and resulted from strong growth in the loan book which translated into net interest income and fee income.
Accordingly, JMMB said it also posted continued growth in its off balance sheet offerings. The group continues to place emphasis on the development and execution of short to medium term strategies to make doing business with JMMB easier, thereby improving the overall experience of its clients in-branch and on digital channels.
Duncan said that the portfolio of companies in the Dominican Republic increased its contribution to overall profitability of the group with improvements in operating revenue from the banking and mutual fund business lines.
“Though these entities are at early stages in their life cycle, they are expected to continue on a positive growth trajectory due to synergies gained as well as increased market share, said Duncan.
Despite a challenging landscape in Trinidad and Tobago, JMMB operations continue to deliver profitable results for the group. We remain confident that we will see each country continue to deliver performance in our efforts to diversify our earnings, maximizing value for all our stakeholders and building on a solid foundation.
“In the fourth quarter, all efforts will be geared towards improving operational efficiency and implementing measures to ensure sustainable growth,” Duncan said of Trinidad and Tobago.
Last year’s introduction of JMMB Bank (Jamaica) Limited saw upgrades being made to the former Merchant Bank’s operations and infrastructure and enhancements to the bank’s technology platform. These changes are still expected to improve operational efficiency and allow for a seamless integration with the rest of the JMMB Group.
Since rolling-out JMMB Bank in Jamaica, the subsidiary has added demand accounts – savings and chequeing accounts, expanded its loan solutions to include home loans with longer tenures and a suite of offerings tailored to small and medium-sized entities; in addition to upgrading its online banking platform. JMMB believes the expansion of its services will attract a broader cross-section of clients.