JMMB Group Limited posted a sharp rebound in profitability for the nine months to December 31, with net profit surging 138 per cent to $4.36 billion as lower regional interest rates boosted margins and trading gains, even as the financial group positions to capitalise on an expected US$2.4-billion wave of post-hurricane reconstruction and public-private partnership activity in Jamaica.

Earnings per stock unit rose to $2.11 from $0.84 in the prior year, reflecting a recovery in core operations after investment-portfolio pressures weighed on performance during the high-interest-rate environment of 2024.

Net operating revenue increased 23 per cent to $22.39 billion, supported by a 38 per cent rise in net interest income to $11.19 billion and a 41 per cent jump in trading gains to $5.06 billion, as easing monetary conditions across key regional markets improved liquidity and widened spreads.

Group Chief Executive Officer Keith Duncan said the company’s capital markets team is actively positioning for increased deal flow as Jamaica moves from hurricane recovery to infrastructure rebuilding.

Public-private partnership (PPP) activity linked to reconstruction is projected at approximately US$2.4 billion, creating scope for bond issuance, structured financing and advisory mandates.

“We have a capital markets team that is tuned in and would be clear where the opportunities would reside,” Duncan said during a recent investor briefing.

The rebound in earnings comes as regional central banks shift towards more accommodative monetary stances. While interest rates remain above pre-tightening levels, the downward trend has improved funding conditions and supported balance-sheet expansion.

Chief Financial Officer Patrick Ellis said proactive portfolio management and funding optimisation also contributed to improved performance, particularly in managing cost of funds and capital deployment.

Operating expenses rose six per cent to $18.89 billion, driven largely by inflationary pressures and strategic investments in longer-term transformation initiatives, but cost growth remained below revenue expansion, supporting margin improvement.

Total assets increased seven per cent to $757.3 billion, while shareholders’ equity grew 17 per cent to $64.9 billion, reflecting stronger profitability and investment revaluation gains.

JMMB’s regional footprint continues to underpin performance.

Jamaica accounted for 54 per cent of gross operating revenue, the Dominican Republic 21 per cent, Trinidad and Tobago 16 per cent, and Barbados nine per cent.

Management said it is expanding its securities business in Barbados, citing economic stabilisation following that country’s debt restructuring and a declining debt-to-GDP trajectory. Although foreign-exchange constraints have historically limited capital-market depth, management views current liquidity conditions as supportive of growth.

Barbados recorded the largest increase in country contribution during the period, with revenue rising 35 per cent to $4 billion.

The group’s strategic stake in Sagicor Financial Company also contributed an estimated $2.4 billion net of financing costs for the nine-month period, reinforcing earnings diversification.

Despite the earnings rebound, JMMB’s stock continues to trade below book value.

Book value per share stood at approximately $33 at the end of the third quarter, compared with a market price of $16.87 at the close of trading on February 13 — implying the stock is trading at roughly half of book value.

The discount suggests lingering market caution following the group’s recent earnings volatility during the interest-rate tightening cycle, even as fundamentals show measurable improvement.

Management said it remains focused on strengthening core operations, maintaining capital buffers above regulatory requirements and positioning the group for sustainable long-term growth.

— Codie-Ann Barrett

JMMB Chief Executive Officer Keith Duncan.