Despite the efforts of the Financial Intelligence Unit (FIU) and passage of laws aimed at stemming money laundering, the illegal trade continues to thrive in T&T, says Agriculture Minister...
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T&T’s IBL adds to JMMB’s success
Just months after its acquisition of 100 per cent of T&T’s Intercommercial Bank Limited and Intercommercial Trust and Merchant Bank Limited (IBL), the JMMB Group says it has contributed to its net profit of J$2.35 billion and earnings per share of J$1.32 for the nine month period ended 31 December 2013. Recently released financial statements show that JMMB’s net profits for the period reflected a positive increase of J$779.6 million or 49.5 per cent. JMMB fully acquired IBL last October, a move that got Kingston, Jamaica-based firm closer to becoming a fully integrated regional financial services company. JMMB finalised acquisition of the bank for US$8.75 million (J$914.1 million), making it s subsidiary of the JMMB Group.
According to the statement, JMMB’s net interest income (NII) showed positive growth year-over-year moving from J$3.48 billion to J$3.83 billion, an increase of J$354.3 million or 10.2 per cent. The group said this increase was driven mainly by expanded business lines through acquisitions of IBL and Capital & Credit Financial Group Limited (CCFG), coupled with effectively managing the its investment portfolio and cost of funds. IBL, though impacted by a one off provisioning on its loan portfolio in the first quarter, contributed revenues of J$341.5 million and incurred operational expenses of J$322.8 million since becoming a wholly owned subsidiary and is on a path of steady growth.
Operating expenses increased to J$3.99 billion compared to J$3.03 billion for the prior year. This increase was mainly attributable to operating costs for CCFG which comprise J$351.0 million or 36.4 per cent, acquisition of IBL contributing J$344.1 million or 35.7 per cent and the remaining J$269.5 million or 27.9 per cent due mainly to integration costs, growth in subsidiaries in the regional markets, and normal inflationary increases. Consequently, despite this increase in expenses, management continues to effectively manage its operations as the group’s efficiency ratio (administrative costs as a percentage of operating revenue) stood at 60.4 per cent at the end of the quarter. The total asset base of the JMMB Group increased by J$24.7 billion or 14.8 per cent for the period, moving from J$166.86 billion as at 31 March, 2013, to J$191.60 billion. This increase in assets was due mainly to acquisition of the IBL which contributed J$25.4 billion. The JMMB Group said in a press release that it will continue to consolidate its recent acquisitions and roll-out its integrated financial service business model to its markets in Jamaica, Dominican Republic and T&T. It will also continue to focus on long term sustainable growth and further enhancing of shareholder value.