The JMMB Group Limited went live with its new core banking system in Trinidad and Tobago, also launching new products, services, policies and processes.
Management, as a result, is promising new digital products and a promise to speedily resolve any hurdles.
“With all the changes required to bring these long-term standardisation efficiencies as well as new solutions services and functionalities, the Group acknowledges that there have been interruptions in our internet banking services, impacting the easy and enjoyable experience that our clients are accustomed to and deserve,” they stated in remarks attached to the six-month financials for the period ended September 30, 2020.
“This has since been resolved, and we remain committed to improving our partnership with our clients by strengthening our IT systems and will continue to improve, upgrade and deliver new digital products and channels within this financial year,” the statement continued.
The Group posted net operating revenue of J$10.80 billion, an eight per cent decline when compared to the corresponding six-month period ended September 30, 2019.
For the period, net profit was J$2.42 billion, down from $2.8 billion at September 2019. Earnings per share, year to date, was $120 per unit, compared to $1.67 for the similar period in 2019.
For the September quarter, management said spread management resulted in an eight per cent growth in net interest income which moved from J$4.63 billion in the prior period to J$4.99 billion in the period under review.
Fees and commission income was five per cent lower at J$1.52 billion as lower business activity was partially offset by significant growth in managed funds and collective investment schemes across the Group, they outlined.
Management said that while the quarter’s trading lines exceeded expectation, gains were below the prior year as bond and equity trading gains was J$3.2 billion, while FX trading gains was J$1.07 billion.
Banking and Related Services segment contributed J$4.2 billion or 39 per cent of net operating revenue for the quarter.
This represented a nine per cent increase when compared to the prior period and was largely on account of strong growth in the loan book which translated to increased net interest income.
On the contrary, Financial and Related Services contributed J$6.41 billion and declined by 18 per cent as a consequence of reduced trading activities.
Operating expenses wasJ$246.2 million or three per cent lower than the prior period at J$7.16 billion.
Management commented, “Given reduced business activity, we implemented a cost containment program while prioritizing our efficiency related projects.
“The Group will continue to focus on extracting operational efficiency from all entities through the launch of its standardisation and process improvements project.”
The Group’s asset base totaled J$466.84 billion, up J$66.62 billion or 17 per cent relative to the start of the financial year.
This was mainly on account of a larger loan and investment portfolio as well as a larger liquidity buffer, management outlined.
Investment portfolio and loans and notes receivable grew by 24 per cent and 12 per cent to J$245.82 billion and J$111 billion, respectively.
Growth in the asset base over the six-month period was funded by increases in customer deposits and repos. Customer deposits increased by J$13.21 billion or 13 per cent to J$117.39 billion, while repos grew by J$37.83 billion or 21 per cent to J$217.42 billion.
Shareholders’ equity increased by 24 per cent to J$51.10 billion.