May 31, 2012
The JMMB Group has announced a net profit of J$2.24 billion, marking the highest profits generated in the Company’s 20 year history. This net profit represents continued robust year-on-year growth, with the annual results pointing to a J$1.1 billion or 96% improvement over the previous year.
SUMMARY OF KEY PERFORMANCE HIGHLIGHTS
The audited results comes on the heels of its most recent step towards the acquisition of the Capital & Credit Financial Group (CCFG), with its Merchant Bank – the submission of a formal Offer via an Offer Circular to the CCFG Board of Directors on Thursday May 24. The Offer opened to the CCFG shareholders in Jamaica and Trinidad and Tobago on Friday, May 25, 2012 and will close on Friday, June 15, 2012.
Though operating expenses increased by 24.3% to J$3.2 billion (compared to J$2.6 billion for the prior year), the Company’s efficiency ratio (administrative costs as a percentage of operating revenue) improved to 53.6% from 63.1% when compared to the corresponding period, as it continues to tightly manage its efficiency and grow revenues faster than expenses. The overall impact resulted in net profit for the quarter of J$446.3 million and year to date of J$2.24 billion.
The Company’s capital to risk weighted assets ratio stood at 22% whereas the Financial Services Commission (FSC) benchmark stipulates a minimum of 14%. The Company’s capital to total assets ratio was 12.5% whereas the FSC benchmark is 6%.
As a corporate citizen, JMMB’s commitment is to create and inspire positive change through nation building and the empowerment of people with outreach and development initiatives. This commitment is grounded in the JMMB values of love, openness, honesty, integrity and care with the CSR areas of focus being social transformation, sports, health, education and cultural events.
In Trinidad and Tobago, IBL Banking Group continued to invest in ‘Mental Math’ – an annual inter school math Olympiad for primary schools, while the Dominican Republic subsidiary concentrated its efforts on fostering financial literacy in children in partnership with Junior Achievement, through its ‘My Money Business’ seminars and adopted a girls’ home, Madeleas.
In Jamaica, the Company continued support of the Committee for the Upliftment of the Mentally Ill (CUMI), which enhances standards of living for the mentally ill and the homeless. In addition, the Company’s significant ventures within training, education and job creation include its J$20 million investment in the Youth Upliftment Through Employment (Y.U.T.E.) programme; as well as an J$81.7 million endowment to the University of Technology’s (UTECH) Joan Duncan School of Entrepreneurship, Ethics and Leadership (JD SEEL) to advance teaching and research in entrepreneurship and ethical considerations in business decision-making. JMMB is also proud to have invested in the renovation of the Jamaica National Stadium Pool’s Control Booth through a partnership with the Amateur Swimming Association of Jamaica and supported the national football programme with its 3-year J$11 million investment in the JMMB/JFF/UTECH Coaching School.
JMMB Group CEO, Keith Duncan, expressed his appreciation to the Board of Directors, shareholders, clients and team members for their unwavering commitment to the Group. “Our team is truly committed to excellence and remains focused on identifying and successfully pursuing market opportunities as well as catering to our clients’ growing needs by designing and providing relevant financial solutions. We pride ourselves on truly being in our clients’ world and having their best interest at heart, and are committed to continuing to raise the standards of service delivery to an even higher level.” Looking to the future, Duncan stated, “As we enter our 20th anniversary year this November, the JMMB Group is well-poised to grow to the next level as a leading indigenous financial services group in the region.”