Former Law Association head Martin Daly, SC, has welcomed Integrity Commission chairman Zainool Hosein’s decision to resign as head of the Retired Judges’ Association. Hosein, who was sworn in on F
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JMMB benefits from regional footprint
Kingston, Jamaica—The JMMB Group posted positive results for the nine-month period ending December 31, 2013, with a net profit of J$2.35 billion, with earnings per share of J$1.32.
These strong results show a positive growth of 27.8 per cent in operating profit driven mainly by an expanded business line through acquisitions of the Capital & Credit Financial Group (CCFG) and Intercommercial Bank Limited and Intercommercial Trust and Merchant Bank Limited (collectively termed IBL Group); coupled with effective management of the Group’s investment portfolio and cost of funds.
The Group’s net profit while showing a reduction over the prior period (2012 —J$3.19 billion), excluding the one off gain from acquisition of CCFG of J$1.61 billion, reflected a positive increase of J$779.6 million or 49.5 per cent. In addition, its operations in the Dominican Republic continues to deliver on the Group’s imperative of building an even stronger indigenous integrated financial house, throughout the Caribbean, by producing exemplary returns to the tune of J$1 billion.
This contribution was driven mainly by growth in net interest income and gains on securities trading. In T&T, the Group finalised the acquisition of the remaining 50 per cent of the share capital of IBL Group for US$8.75 million, making IBL a 100 per cent subsidiary of the JMMB Group. IBL, though impacted by a one-off provisioning on its loan portfolio in the first quarter, contributed revenues of J$341.5 million since becoming a wholly-owned subsidiary.
As a result of the acquisition of IBL, the Group’s total asset base grew by 14.8 per cent for the nine month period, to J$191.6 billion. The integration process of IBL into the JMMB Group is well underway, where opportunities for synergies and process efficiencies are being realised. Of note during the quarter, the Group’s build out of its capital markets unit also continued to bear fruit, with JMMB Securities Limited acting as the lead broker in the oversubscribed listing of Eppley Limited’s preference shares.
That listing being the first ever listing of preference shares on the Jamaica Junior Stock Exchange. That initiative is evidence of the Group’s business line diversification strategy. Other operating revenues reflected significant increases, which were driven largely by increased volume activity and taking advantage of market opportunities in the Dominican Republic.
Operating expenses increased to J$3.99 billion, compared to J$3.03 billion for the prior year, due mainly to operating costs for CCFG, the acquisition of IBL, integration costs, growth in subsidiaries in the regional markets, and normal inflationary increases. Despite this increase in expenses, the Group 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 (2012 —59.7 per cent) at the end of the quarter.