The JMMB Group saw net profits hit an all-time high of $12.02 billion for its financial year ending March 31, 2022, reflecting a 56 per cent increase in earnings year-over-year for the regional financial conglomerate.
The group also posted operating revenue of $26.6 billion, up 19 per cent over the reporting period.
Keith Duncan, JMMB Group CEO, said the strong performance is attributable to JMMB’s unrelenting focus on client partnership as well as the ongoing impact of the company’s regional and business line diversification strategy.
Duncan also noted that there was exceptional growth of the group’s banking business line, which achieved 29 per cent growth in revenue, year-over-year, and record performance from our Dominican Republic portfolio.
“We are pleased with the group’s stellar performance over the financial year, despite the challenging economic environment, as we have been able to significantly outperform our previous financial year,” Duncan noted.
In sharing his outlook for the new financial year, the Group CEO expressed cautious optimism stating, “the uncertainties in the economic environment, continued volatility in markets globally and supply chain disruptions could pose a challenge to growth. The team, however, remains confident in our strategic direction and looks forward to delivering solid organic and inorganic growth, in a bid to add value to our clients and shareholders.”
Meanwhile, JMMB Group CFO Patrick Ellis underscored the tremendous value of its investment in the associate, Sagicor Financial Company Ltd. (SFC), which contributed $5.08 billion, an uptick of 170 per cent, for the comparative period.
The JMMB Group’s recently released financial results also showed positive performance in its revenue lines, namely: net interest income, fees and commission income trading gains and foreign exchange trading.
The regional financial conglomerate saw an 11 per cent increase in its net interest income, from $10.46 billion to $11.58 billion.
Additionally, fees and commission income moved from $3.42 billion to $5.02 billion, reflecting an increase of 47 per cent, over the corresponding period. This was driven by increased activity from its capital markets business line as well as significant growth in managed funds and collective investment schemes across the group; thereby providing value-added service to clients.
Trading gains over the reporting period were up by eight per cent, from $ 6.79 billion to $7.32 billion, despite the increased interest rates and volatility in the global markets the group was able to leverage its strength and expertise.
Foreign exchange gains from cambio operations increased from $1.93 billion to $2.59 billion, which reflects a 34 per cent growth in earnings over the comparative period reflecting increased volume activity. The group’s earnings were also bolstered by $141.89 million in dividends received on equity portfolio.
JMMB Group’s operational expenses during the period moved from $14.52 billion to $18.53 billion, which was mainly attributable to continued build-out of its digital platform; standardization of the group’s banking and reporting platform projects and inflationary increase.
During the reporting period, JMMB Group rolled out several projects designed to provide an improved client experience, process optimization and critical IT infrastructure, in the medium to long term. These projects included: an upgrade of its automated teller machines (ATMs) fleet to smart ATMs in Trinidad and Tobago and Jamaica, and the introduction of new card services in Jamaica with fintech partners, Norbrook Transaction Services Limited. Additionally, the Group continued the integration of core, enabling infrastructure, processes and systems to standardize operations across its operating territories.
At the end of the reporting period, the JMMB Group’s asset base totalled $614.47 billion, up by $100.76 billion or 20 per cent, relative to the start of the financial year. This is mainly attributed to loan and investment portfolio, which saw growth of 27 per cent and 19 per cent respectively totalling, $332.08 billion and $142.71 billion, correspondingly. The growth in the group’s assets was mainly funded by clients’ deposits and repurchase agreements which reflected a growth of 18.4 per cent and 31 per cent respectively.
Meanwhile, Duncan in sharing on the strategic outlook for the group, outlined, “In spite of the economic challenges anticipated for the rest of the year, we remain confident in the sustainability of the group and our ability to execute our strategic imperatives of maximizing shareholder value through business line and regional diversification.”
Duncan added: “We will be laser-focused on efficient growth, maximizing the revenue contributions from new and evolving solutions aligned to empower our clients to achieve their goals and continue to accelerate our digital transformation imperatives, creating a unique omnichannel design, in line with who we are as a client-centric organization built on love, and aligned to the evolution of the future of financial services.”
Duncan further revealed that new solutions will be launched this year that will allow the JMMB Group to better serve its client segments, with a particular focus on traditional and innovative non-traditional payment offerings to deepen its client financial partnership.