Jamaica Money Market Brokers expects best-ever year

Jamaica Money Market Brokers expects best-ever year

…strong growth backed up by regional expansion

BY DURRANT PATE
Observer Business Writer

Wednesday, February 19, 2020

Print this page Email A Friend!


Jamaica Money Market Brokers (JMMB) is projecting that its 2019 financials, when completed, will represent the strongest in its history with significant performance attributed to organic and inorganic growth.

So far, JMMB Group earned record profits for the nine-month reporting period ended December 31, 2019, with operating profits of J$5.79 billion, representing a 43 per cent increase over the prior year.

In addition to this performance, the company recorded significant achievements during the third quarter, resulting from the execution of its regionally integrated financial services strategy.

These include the successful execution of the acquisition of 22.5 per cent of Sagicor Financial Company Limited (SFC), the opening of JMMB Express Finance (T&T) Limited, the group's consumer finance business line, fifth location (Tobago), on December 4, 2019.

During that period, JMMB successfully introduced its Visa debit card as well as Visa-enabled ATMs in Jamaica and the migration of clients who held Save Smart accounts at JMMB Investments to JMMB Bank's (Jamaica) EzAccess chequing and savings accounts.

In its just-released unaudited financial results for the nine-month reporting period JMMB pointed out that the SCF acquisition gave the group diversification and the opportunity to participate in the future growth of a market leader in the Caribbean's insurance, pension, and asset management sectors. The acquisition, which cost approximately J$34.4 billion, was not completed at the reporting date with the financial results of SFC as of December 31, 2019, not yet available.

JMMB's share of net assets and share of profits or gains arising on this acquisition will be reflected when the purchase price allocation is finalised, which is expected before March 31, 2020. Another significant milestone during the period under review was JMMB's first additional public share offering, the largest of its kind in Jamaica, which raised J$12.4 billion.

This funding strengthens the group's capital base and will be used to further facilitate the group's expansion and diversification strategy through acquisitions and adding new business lines.

UPCOMING FOURTH QUARTER

The directors report that the upcoming fourth quarter January-March 2020 “will see a sharp focus on embedding our financial partnership model to better serve our clients and reap synergy benefits from operating from a “One Group, One Client, One Experience framework.”

In his report Chief Executive Officer Keith Duncan pointed to another imperative for the fourth quarter, which is completing crucial operational efficiency projects to allow the banking business lines to operate on one core banking system while utilising standardised products, procedures, and policies across the group.

“Deepening our inorganic growth strategy as we explore accretive business development opportunities to grow our return on equity and expand our footprint,” Duncan reported.

FINANCIAL PERFORMANCE

Net operating revenue for the period under review totalled J$17.38 billion, which represented a 26% growth or J$3.61 billion when compared to the comparable period last year. This mainly resulted from increases in net gains on securities trading, FX trading gains, fees and previous income and net interest income.

Net gains on securities trading grew by 69% to J$5.64 billion and were partly due to improved appetite for emerging-market assets. Foreign exchange trading gains increased by 19 per cent or J$359.28 million to J$2.26 billion because of increased trading volume and growth in regional markets. Fees and commission income was 32 per cent higher at J$2.43 billion and was due to significant growth in managed funds and collective investment schemes across the group.

Net interest income grew by 5 per cent to J$7.02 billion as there was strong growth in the loan and investment portfolios.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT