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JMMB's headquarters in New Kingston, Jamaica (Photo: JMMB)

JMMB boosted by Sagicor earnings

JMMB's headquarters in New Kingston, Jamaica (Photo: JMMB)

JMMB Group Limited posted an 11.84 per cent increase in net profit for the year ending March 31, 2021 to $7.72 billion, boosted by a share of the earnings from Sagicor Financial Company Limited (SCF) in which JMMB owns a 22.73 per cent stake.

Sagicor Financial Company Limited’s headquarters in St Michael, Barbados. (File photo)

At year end, net interest income and other revenue for JMMB was $22.12 billion, up 12 per cent from  $19.69 billion at year end March 2019.

Net gains on securities trading grew by 10.6 per cent to $6.79 billion up from $6.17 billion at March 2020.

However, the group saw fee and commission income decline by 19 per cent to $1.73 billion, down from  $2.12 billion in March 2020.

Additionally, foreign exchange margins from cambio trading declined by 23.6 per cent to $1.93 billion, down from $2.81 billion in 2020.

Earnings for the full year were buttressed by share of profit from associate company SCF which contributed $1.88 billion compared to $195.2 million in 2020.

The principal activities of SFC are life and health insurance, annuities and pension administration services, and banking and investment management services. The investment was made by JMMB in 2019 to diversify the Group’s income stream and improve core earnings. SFC is listed on the Toronto Stock Exchange.

The Toronto Stock Exchange stands on Bay Street in Toronto, Ontario, Canada, on Monday, Aug. 29, 2011. Bay Street is the center of Toronto’s Financial District and is often used as a metaphor to refer to Canada’s financial industry. Photographer: Brent Lewin/Bloomberg via Getty Images

JMMB’s financial and related services include securities brokering, stock brokering, portfolio planning, funds management and investment advisory services.

Its banking and related services include taking deposits, granting loans and other credit facilities, foreign currency trading and remittance and related services. Other segments are insurance brokering, investment and real estate holding.

Total assets at year end March 2020 was $513. 7 billion, up from a restated $399.69 billion at year end March 2020. The company during the year saw a larger loan and investment portfolio and increased cash holdings as a liquidity buffer.

“[All] of the countries in which JMMB operates have fiscal room to absorb the effects of the pandemic, at least in the short term, with Jamaica and the Dominican Republic in particular, experiencing improved debt levels…”

Cash and cash equivalent at year end was $67.29 billion, up from $42.63 billion at March 2020. 

Stockholders equity at year end was $61.21 billion, up from $41.22 billion at March 2020.

Regarding the impact of the coronavirus pandemic, the group in its year-end audited financials said that the “economic fallout, personal and corporate income may continue to be materially impacted with rising unemployment. Corporate clients, including SMEs, are expected to be experiencing significant declines in their revenue.

“This impact may include potential closures particularly in those sectors directly affected by the pandemic as a result of the measures taken to combat the spread which include restrictions on movement, travel and gatherings.”

On the positive side, it was noted that “all of the countries in which JMMB operates have fiscal room to absorb the effects of the pandemic, at least in the short term, with Jamaica and the Dominican Republic in particular, experiencing improved debt levels…Risks have been mitigated to some extent by the actions of governments and regulators in the various jurisdictions.”