JMMB Group posted a net profit of $586 million, an increase of 111 percent over the profit of 2014 after asset tax of $398 million was fully expensed in the 2015 quarter. JMMB earned profit of $278 million and earnings per share of 36 cents for the quarter ended June, this year. The profit for the quarter shows a marked improvement over the mere $79 million reported in the March quarter.
Net Interest Income grew year-over-year moving from $1.29 billion to $1.44 billion, an increase of J$147 million or 11.4 percent. This increase was driven mainly by increased margins, resulting from growth in Group’s loan portfolio in Jamaica and Trinidad coupled with reduced costs of funds.
“Other operating revenues, namely, gains on securities trading, foreign exchange margins from cambio trading and commission income, showed increases of 62 percent, 20.5 percent and 39 percent respectively, driven largely by increased volume activity and taking advantage of one-off market opportunities,” Noel A. Lyon, Chairman and Keith Duncan, Group Chief Executive Officer, advised shareholders, in a release accompanying the quarterly.
Net gains on securities trading, accounted for $1.23 million, was generated in the 2015 period and in 2014, $757 million. After booking the large investment gains, the group still has investment revaluation reserve amounting to $2.25 billion at the end of June which can be shifted to the normal profit stream.
The released from management continued, “In Trinidad and Tobago, the Group’s operations continue to move in a positive trajectory, contributing J$41 million for the quarter. Management continues to build out its integrated financial services model through JMMB Investments Trinidad and Tobago and its commercial banking arm, Intercommercial Bank.”
Operating expenses for the quarter totalled $2.3 billion, up 13 percent compared to $2 billion for the prior year. This increase was mainly attributable to staff related costs, asset tax and expansion of business activities regionally.
The asset base of the JMMB Group increased by J$4.8 billion to J$222.5 billion from J$217.7 billion as at 31 March 2015. This increase in assets was mainly funded by client deposits and repurchase agreements.
[…] 20 cents at $30.30, Jamaica Stock Exchange lost 20 cents in trading 5,000 units to close at $22.30, JMMB Group had only 1,000 units changing hands but fell 20 cents in closing at $10.10. Kingston Wharves traded […]