However, impairment loss on financial assets increased from $1.41 billion to $2.01 billion

Regional financial powerhouse, JMMB Group Limited has turned the tables erasing last year’s comprehensive losses of $1.2 billion to post total comprehensive profit of $19.91 billion for the financial year ended March 31, 2020.

Net profits went up six per cent to total $7.72 billion compared to $7.07 billion reported for 2020. Net profit for the quarter amounted to $3.70 billion, relative to the $3.06 billion reported for the same quarter of 2020.

Net profit attributable to the shareholders of the company totalled $7.51 billion relative to $6.99 billion in 2020, a seven per cent increase year over year. Share of profit of associated company amounted to $1.88 billion (2020: $195.21 million).

As such, JMMB Group recorded a profit before taxation of $7.96 billion, a 10 per cent increase over the $7.22 billion recorded for the corresponding period in 2020. As for the quarter, profit before taxation closed at $2.92 billion compared to last year’s $1.42 billion, representing a 105 per cent increase.

Big jump in taxes

Taxation for the period amounted to $242.20 million, a 61 per cent increase compared with the $150.04 million incurred in 2020. As a result, operating profit amounted to $8.09 billion, up 43 per cent when compared to the $5.64 billion reported in 2020.

Impairment loss on financial assets increased from $1.41 billion to $2.01 billion at the end of the 2021 financial year. During the year there was no gain on acquisition of associate was recorded versus a gain on acquisition of associate of $2.80 billion in 2020 financial year.

For the period under review JMMB Group recorded net interest income of $10.46 billion, a 13 per cent increase when compared with $9.28 billion recorded for the corresponding period in 2020. Interest income for the year amounted to $22.12 billion compared to $19.69 billion reported in 2020.

Interest expenses increased 12 per cent to total $11.66 billion relative to the $10.41 billion recorded for the same period in 2020. Net interest income for the quarter amounted to $2.88 billion, a 27 per cent increase when compared with the $2.26 billion recorded for the same period in 2020.

Fees earned from managing funds on behalf of clients amounted to $1.49 billion versus $1.41 billion recorded the prior year while gains on securities trading climbed 10 per cent to total $6.79 billion. This is a slight increase over the $6.17 billion posted last year.

Cambio trading declined by 31%

Foreign exchange margins from cambio trading fell 31 per cent to $1.93 billion coming from $2.81 billion in 2020, while net income from financial assets at fair value through profit or loss closed at $47.09 million relative to a loss of $267.98 million in 2020.

Operating revenue net of interest expenses amounted to $22.44 billion, representing a growth of four per cent year over year. Total other income amounted to $178.44 million more than doubling the $55.46 million booked last year.

·       Dividend income closed at $121.12 million (2020: $48.46 million), reflecting a 150% increase year over year.

·       Other income amounted $57.31 million (2020: $7 million) at the end of March 2021.

·       Staff costs recorded a 15 per cent decline to $8.01 billion (2020: $9.42 billion), while other expenses closed at $6.52 billion (2020: $6.51 billion).

Total assets as at March 31, 2021 amounted to $513.71 billion relative to $399.70 billion in 2020. The movement was due to an increase in Investment securities to close at $262.39 billion (2020: $192.27 billion) and growth in Loans and notes receivables, which closed at $119.46 billion (2020: $98.84 billion).

Cash and cash equivalents also contributed to the increase in the asset base closing at $67.29 billion (2020: $42.64 billion)