JMMB is accelerating its digital banking expansion with plans to launch its first fully digital branch in Liguanea, Kingston. The new Hope Road location is expected to open in the first quarter of its new financial year, pending regulatory approvals.

“We’re going for a tellerless concept,” said Gifford Rankine, general manager of group digital services.

The new digital branch will offer a self-service model including ATMs for JMD and USD transactions, a drop box for third-currency deposits, self-service tablets for account onboarding and loan applications, digital lockers for card pick-ups, and virtual advisory stations for financial guidance. The digital branch, expected to open in the first quarter of JMMB’s new financial year, will also host educational events.

“You will still have some team members on the ground to provide guidance, and we will also have a virtual advisory station for additional support,” Rankine added.

The digital expansion follows JMMB’s recent upgrade of its Santa Cruz branch in St Elizabeth in January, 2025 into a full-service Financial Life Goals Centre, transitioning from an investment-focused facility to a comprehensive banking branch.

The expansion comes as JMMB reports an 8 per cent increase in operating expenses for its third quarter, rising by J$1.3 billion to J$17.8 billion, compared to J$16.5 billion in the same period last year. Patrick Ellis, chief financial officer, acknowledged that the financial institution is not yet where it hopes to be, but emphasised that digital transformation remains a key part of JMMB’s long-term strategy to improve efficiency. JMMB’s operating expenses currently account for approximately 59.5 per cent of its overall income.

“As we remodel the investment business line, we will be impacted by some one off costs as we execute our strategic initiative, but in the long term for the business, you will see this ratio moving in a positive direction,” shared Ellis.

The bank reported J$1.8 billion in net profit for its third quarter, covering the nine-month period ending December 2024, a decline from 16.6 billion for the same period the previous year. Its net operating revenue was J$18.14 billion, which was slightly lower by 4 per cent. JMMB’s banking business line accounted for 68 per cent of operating revenues, while its investment in Sagicor Financial Company contributed J$1.76 billion. Following the cancellation of some Sagicor shares, JMMB’s stake in the company has increased to 25.56 per cent , a move expected to enhance earnings going forward.

At the same time, preference shareholders are set to vote on March 3 to determine whether maturity dates for JMMB’s preference shares will be extended to 2031 and 2032, with higher coupon rates. If approved, the USD 5.75 per cent preference shares will mature on March 6, 2031, with a new coupon rate of 7.50 per cent and the JMD 7.25 per cent preference shares will mature on March 5, 2032, with a new coupon rate of 10 per cent for the first 12 months. Thereafter, the rate will be tied to the Government of Jamaica’s 180-day weighted average Treasury bill yield plus 2.50 per cent, with a minimum floor of 6 per cent per annum.

“This extension will provide the preference shareholders with a more seamless way to continue to enjoy the attractive returns associated with this solid investment,” said Ryan Chung, corporate manager of JMMB’s Capital Markets Division.

He explained that previously, JMMB would issue a new prospectus upon the maturity of existing preference shares. However, as the maturity dates approach, the company is now opting for a more efficient approach.

“If you know the process of issuing new shares, it’s more time-consuming and administratively inefficient. Issuing new shares requires investors to go through the often difficult task of completing and submitting application forms and supporting documentation. Simply voting for an extension of the existing terms eliminates that need while empowering preference shareholders to receive competitive returns on their investments,” he told shareholders.