JMMB Group has recorded a profit of J$1.83 billion (TT$78.5 million) for the nine months ending December 31, 2024, with earnings per share of $0.84.
In its unaudited financial statements released Monday, the financial institution stated, “The JMMB Group’s financial performance continues to improve as evidenced in the October to December 2024 quarter. Even though for the first six months of the financial year, the group reported an operating loss of J$570 million (TT$24.4 million), there was a marked rebound in the third quarter resulting in a year-to-date operating profit of J$379 million (TT$16.2 million). Additionally, quarter two year-to-date net profit improved by 164% from J$696 million (TT$29.8 million) to J$1.83 billion (TT$78.5 million) in quarter three year-to-date.”
It said its strategic investment in Sagicor Financial Company (SFC) continues to be accretive to the group, contributing J$1.76 billion (TT$75.4 million) to the share of profit for the nine months ending December 31, 2024.
“The Group also entered into a strategic joint venture partnership with Liberty Latin America parents of FLOW Jamaica, to create a digital microfinance lending company, MyneLend Jamaica Ltd, of which it has 50% ownership,” it stated.
JMMB said that last August 12, it received its microcredit licence from the Bank of Jamaica and is serving a closed group of FLOW clients providing digital microlending solutions and the Group, with its partner, has made upfront investments to establish this technology-based innovative new business venture in keeping with its business plan.
“This includes investing in its operational, technical, administrative and infrastructural set-up. Post this start-up phase, the entity is expected to efficiently scale its operations as it grows, and provide accretive returns to its shareholders over time,” it shared.
It added that the Group has reflected a loss of approximately J$114.7 million (TTT$4.9 million) arising from the start-up of operations.
“The JMMB Jamaica operation, which was significantly impacted by the tight monetary policy, continues to execute strategies to drive core revenues and increase efficiency. These efforts are now showing up with improved financial performance and a positive trajectory as evidenced by Jamaica’s contribution to net operating revenue increasing by 12% as well as a 48% improvement in operating profit,” the Group stated.
It said the Dominican Republic and Trinidad and Tobago operations continue to produce credible performances contributing 19% and 29% of net operating revenues, respectively.
“Globally, there has been an easing of monetary policy with the lowering of policy rates in Jamaica and the Dominican Republic. In Jamaica, the Bank of Jamaica (BOJ) reduced its policy rate from 7% to 6% between July and December 2024. Similar movements were seen in the Dominican Republic as the Central Bank of the Dominican Republic reduced its policy rate by 75 basis points between October and December 2024, down to 5.75%.
The US Fed also reduced the policy rate by 50 basis points over the last quarter, between November and December 2024 to the band of 4.25%-4.50%. Despite the recent reduction in interest rates, rates remain elevated as the US Federal Reserve held its policy rate at its recent sitting in January 2025,” the Group statement said.
It was noted that this policy decision could lead the Central Banks in the Dominican Republic and Jamaica, which have been reducing policy rates, to possibly maintain their rates due to the uncertainty created in the global economy.
“Therefore, the expected path of reduction in interest rates is on hold and could continue to keep interest rates at these elevated levels which could continue to compress net interest margins. In terms of our capital, the Group continues to remain adequately capitalised with the Group, countries and all entities meeting regulatory capital requirements,” JMMB stated.
It added that it will continue to diversify and grow its business and revenue lines and work towards a more resilient earnings profile in tandem with active cost management to increase operational efficiency, productivity and profitability.
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Publish date : 2025-02-19 13:00:00
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