JMMB Bank (Jamaica) Limited has become the latest commercial bank to publicly announce an interest rate hike, with variable rate customers set to see up to a maximum increase of 1.50 per cent come August 1, 2022.

This was announced by JMMB Bank’s general manager for client partnership Moya Leiba-Barnes at JMMB Group Limited’s (JMMBGL) virtual investor briefing on Thursday. She noted that the date was set to give affected customers sufficient time to become aware of the changes.

Sagicor Bank Jamaica Limited and the Victoria Mutual Building Society will follow JMMB Bank’s step with their rate changes set to take effect on June 27 and July 1, respectively. JN Bank Limited’s 25 to 50 basis point (0.25 to 0.50 per cent) rate hike took effect on Thursday with National Commercial Bank Jamaica Limited personal and Small and medium-sized enterprise (SME) clients facing an average hike of 1.14 per cent with the range from one per cent to 1.75 per cent on July 19. First Global Bank Limited is set to raise rates on July 4.

Scotia Jamaica’s current borrowing rates are set to expire on August 15 with no immediate plans of a general hike across the board at this time. FirstCaribbean International Bank (Jamaica) Limited and Citibank, NA have also remained quiet on possible rate hikes.

JMMB Bank’s 2021 audited financials revealed that a 100 basis point (one per cent) rise in interest rates on floating assets and liabilities would decrease its net profit by $439.57 million and improve its other comprehensive income to the tune of $316.87 million. JMMB Bank had a loan book of $69.05 billion in March 2021 which generated a net profit of $1.11 billion. JMMB Bank received a capital injection of $2.50 billion by its parent JMMBGL during the 2022 financial year. JMMB Group’s banking segment’s net result declined from $2.45 billion to $2.36 billion for the year under review.