JMMB Group Limited (JMMBGL) delivered a net profit of J$1.83 billion and earnings per share of J$0.84 for the nine-month period ended December 2024. 

This marks a strong rebound in the third quarter year-to-date net profit, as evidenced by a 164 per cent improvement from the J$696 million second-quarter year-to-date net profit. Further, third quarter year-to-date operating profit reached J$379 million, following an operating loss of J$570 million in the first half of the financial year. 

Revenue resilience amid economic pressures

Net operating revenue for the period totalled J$18.13 billion, reflecting a four per cent decline year-over-year, primarily due to global interest rate pressures. Net interest income grew six per cent to J$8.13 billion, supported by a stronger funding mix.

Foreign exchange (FX) trading gains increased by seven per cent to J$2.18 billion, while fixed-income trading gains declined 28 per cent to J$3.58 billion. Fees and commission income remained stable at J$3.89 billion, as clients adopted a cautious approach to capital markets transactions.

Banking strength fuels growth

The banking and related services segment contributed J$12.29 billion, or 68 per cent of net operating revenue, reflecting a 16 per cent increase driven by loan book growth and improved margins. Financial and related services generated J$5.34 billion, accounting for 29 per cent of revenue, but declined by 19 per cent due to elevated interest rates and tight market liquidity.

Regionally, operations in the Dominican Republic and Trinidad & Tobago accounted for 19 per cent and 29 per cent of net operating revenue, respectively.

Strategic investments drive long-term value

JMMB’s strategic investment in Sagicor Financial Company (SFC) continues to yield positive returns, contributing J$1.76 billion to share of profit over the period. Finance cost associated with the SFC investment amounted to J$1.32B over the period.

Navigating market shifts and economic trends

Monetary policies in key markets have seen adjustments. In Jamaica, the Bank of Jamaica (BOJ) reduced its policy rate from seven to six per cent between July and December 2024.

The Dominican Republic Central Bank lowered rates by 75 basis points to 5.75 per cent between October and December 2024 and in January 2025, kept interest rates steady Meanwhile, the US Federal Reserve reduced rates by 50 basis points between November and December 2024 and held steady in January 2025 at 4.25-4.50 per cent.

Despite recent rate cuts, interest rates remain elevated, with potential for continued compression of net interest margins as the environment remains uncertain due to the direction of monetary policy and geopolitical developments globally. Nevertheless, JMMB says it remains focused on revenue diversification and cost management to navigate these conditions.

Strengthening financial position and client confidence

Total assets grew four per cent to J$704.75 billion, while the loan portfolio expanded seven per cent to J$212.90 billion, maintaining strong credit quality. The investment portfolio increased by two per cent to J$326.93 billion.

Customer deposits rose 10 per cent to J$219.65 billion, reflecting continued client confidence. Shareholders’ equity increased two per cent to J$55.43 billion, driven by internally generated capital. Off-balance sheet funds under management grew to J$222.73 billion, up from J$187.38 billion in December 2023.

Focused on efficiency, future growth

The group advised that its operating expenses increased from J$16.48 billion to J$17.76 billion due to inflationary pressures and strategic investments. Now, it will focus on optimising operations through digital transformation, centralisation, and enhanced sales integration.

“We are committed to improving operational efficiency and operational excellence as we invest in digitisation and standardisation across the group,” said Patrick Ellis, JMMB Group chief financial office. “Our strategic investments and partnerships position us well for future success.”

JMMB Group CEO, Keith Duncan, expressed his appreciation for the hard work and dedication of the team in navigating the evolving market conditions.

“Our performance reflects resilience and the effectiveness of our strategic initiatives. We remain committed to delivering long-term value for our stakeholders and are deeply grateful to our team for their unwavering commitment to our mission.”

Looking ahead, as market conditions evolve, the JMMB group says it is well-positioned to navigate challenges and capitalise on growth opportunities across its regional markets.