THE JMMB Group saw its profit dip by almost a half in the nine months to the end of December.

Profit over the period amounted to $4.76 billion, down from $8.82 billion a year earlier.

Revenue also fell, going down by 14 per cent to $18.9 billion, as higher interest rates saw investors reducing demand for emerging market assets to reduce their risks of loss.

“As experienced across the industry, the high interest rate operating environment continues to impact the performance of the group’s investments business line in Jamaica and Dominican Republic,” the company said in a release Tuesday.

“The quarter’s financial results, therefore, reflect this impact, particularly earnings from gains on securities trading as well as net interest income, which are both core drivers of earnings and which historically combined account for approximately 61 per cent of total revenue.”

JMMB Group said, while the investments business line has been adversely impacted by the macroeconomic environment, the group’s banking business line was the largest revenue contributor, accounting for 52 per cent of net operating revenue, up from 37 per cent in the prior period. In terms of geographic contribution, the group’s regional diversification strategy continued to yield benefits as Trinidad contributed 23 per cent to operating revenue, up from 15 per cent in the prior period. Sagicor Financial Company Limited (SFC) also contributed positively to the group’s profitability with $2.12 billion in share of profit.

The results come as the JMMB Group launched merchant acquiring solutions for business clients, including point of sale (POS) and Scan2Pay solutions developed with technology partner WiPay Jamaica Limited. In the coming quarter, JMMB Group says it will continue to work on other products and digital solutions aimed at deepening partnerships and enhancing the experience of both retail and business clients.

The group expects to see improved market conditions over time, which could see a gradual easing of monetary policy and thus looks forward to eventual normalised levels of performance, especially in its investments business line in the medium term.

In the quarter ahead the group will continue to focus on “smart growth” through diversification of earning streams, expansion into new geographies, and new business lines, while improving efficiency to drive growth and profitability.