JMMB Group reported strong profit growth for the months April to June due in part to contribution from its stake in Sagicor Financial Corporation.
The regional financial conglomerate posted profit of JM$1.93 billion for the three months ended June 30, which was up 148 per cent above the outturn for the same period of the prior year. JMMB Group highlighted that JM$319 million of the amount was contributed by Sagicor Financial, in which JMMB Group holds a 22.85 per cent stake.
The stronger profit was also attributed to all revenue lines recording improved performance. Net operating revenue of JM$6.86 billion for the three months ended June 30, reflected growth of 37 per cent. Net interest income, trading gains and fees and commission income were the main drivers of this growth.
JMMB Group said this was facilitated by increased economic activity relative to the prior period as well as continued accommodative monetary policies in the countries in which it has operations.
In particular, CEO of JMMB Group Keith Duncan attributed the performance to the outturn in the Dominican Republic.
“We’ve done really well in the Dom Rep; we’ve pivoted to a more trading shop in the Dom Rep and as a result, realised significant gains on securities trading, and we’ve been able to ride volatility and trade volatility very well in the Dom Rep market”, he asserted.
“We were first in the securities dealer market in the Dom Rep ten years ago and we have perfected the art, so we doing well in the Dom Rep — that is what is driving results,” he continued.
JMMB Group results show gains on securities trading increased 86 per cent to JM$2.4 billion. It helped to push operating revenues net of interest expenses close to JM$7 billion, up from less than JM$5 billion.
Duncan said the next aim is to boost JMMB Bank in Jamaica. “In Jamaica, if you look at banking, if you look at how we have like tripled our market share in the last three or four years, if you look at the growth in loans and compare that to Sagicor growth, First Global growth, FCIB growth, you see [JMMB Bank] Jamaica passed FGB and [is] breathing right under FCIB now and we going for Sagicor,” he asserted.
“JMMB has the secret sauce, enuh, and we taking over.”