Jamaica Money Market Brokers (JMMB) had their best year ever in the period leading up to the end of March this year, chalking up at 80.7 percent increase in ongoing earnings. The market is not impressed as the stock has been trading down on both Trinidad and Jamaica stock exchanges recently and after the posting of the results. With profit after tax coming in at $2.8 billion including a $362 million for gains form the purchase of the shares in its fully owned subsidiary which it acquired fully in 2013, the group earned $1.74 per share for the year, placing the PE at 4 times last year’s earnings and around 2.7 times IC Insider projected 2015 earnings. In 2013 JMMB reported $3.74 billion but that was helped considerably by a $2 billion gain from the acquisition of the shares of Capital and Credit Group, without that gain earnings would be just $1.7 billion in that year.
Financial & Related Services contributed profit before tax of $2.62 billion and Banking & Related Services $443 million, these are up from $1.66 billion and just $33 million respectively reported for 2013.
Revenues grow| In a year when they took over the balance of the shares not previously owned by them in Intercommercial Bank in Trinidad, revenues climbed to $15.75 billion from $12.9 billion in 2013 or a 22 percent increase but staff and administrative cost rose from $4.6 billion to $5.67 billion in 2014 for a 12.3 percent increase, well below the growth in revenues but interest cost climbed only 6 percent.
According to the audited financial statements “In the six month period ended 31 March 2014, Intercommercial Bank contributed revenue of J$794,210,000 and net profit of J$156,445,000 to the Group’s results. If the acquisition had occurred on 1April 2013, management estimates that revenue would have been J$1,436,439,000, and net profit for the year would have been J$106,459,000”.
Assets|Total assets climbed to more than $200 billion for the first time ending at $207 billion versus $167 billion at the end of March 2013. A fair bit of the growth came as a result of the acquisition of the shares in the Trinidad bank which contributed $24 billion but with equity capital of just over $18 billion there is some amount of exposure as leveraging is at a high level with customer deposits at $36 billion and repos payable of $143 billion.
JMMB has operations mainly in Jamaica, Dominican Republic and Trinidad and Tobago. This stock stills carries IC Insider Buy Rating.
[…] growth in assets is pretty strong and should result in strong increase in profits going forward. JMMB stock last traded on the Jamaica Stock Exchange at $7 and on the Trinidad Stock Exchange at TT 45 […]