JMMB Group has plans to reduce its cost of doing business, having implemented measures aimed at improving operational efficiency

“Our expense side, operational efficiency, and that is, as we said, part of our strategic objective… we try to ensure that our revenue grows faster than our expenses. Our operating efficiency ratio is not where we want it to be long-term. We want it to be in the 70s to 65 per cent,” JMMB Group Chief Financial Officer (CFO) Patrick Ellis shared at the annual general meeting on Friday, October 10.

He further pointed out that while the group managed to reduce its staff costs by two per cent, other costs driving up operational expenses included insurance, depreciation and IT costs related to its digitalisation and standardisation exercise.

“So…three items would have contributed to 70 per cent of that. But as a long-term strategic initiative, our long-term target is to ensure that we can grow on a scalable model. So we expect going forward in the future to see an improved, efficient solution,” Ellis further explained.

As at March 31, 2025, JMMB Group’s annual operating expenses grew by less than 1 per cent. However, at $23.82 billion, expenses were 94 per cent total revenues. Operating profit for the year was $1.4 billion.

The CFO said the financial services and investment group has seen a turnaround as of the first quarter of financial 2025/26, which ended June 30, 2025. For the period, the company’s operating profit stood at $542.66 million.

Diversification strategy

In the meantime, Ellis shared that JMMB’s diversification strategy has helped to improve revenues. He added that with the group’s expanded operations in the Dominican Republic and Trinidad and Tobago at a mature stage, it was less exposed to risks associated with its Jamaican operation.

“So, the core aspect of the group’s business, we continue to move in a positive direction…On our diversification strategy, just reinforcing the point that I highlighted earlier, 56 per cent of revenue coming out of Jamaica at $30.5 billion, 20 per cent from Dominican Republic at $11.2 billion, Trinidad $8.8 billion at 16 per cent, and Barbados, 8 per cent to $4.3 billion,” he said.

Ellis further explained that given the high interest rate environment that persisted into 2024/25, JMMB Group saw its business diversification strategy bearing fruit, as banking brought in more revenues than its investment and capital markets businesses.