By Kimberly Ramkhalawan
February 18, 2022
The JMMB Group Limited posted a net profit of J$8.82 and earnings per share of J$4.23 for the nine months ending December 31, 2021.
Group Chief Executive Officer, Keith Duncan, in his statement said JMMB Group’s growth trajectory continued in earnest, with the year-to-date results surpassing the previous financial year’s performance. He is attributing this growth to an overall atmosphere the group has created through its diversification strategy that looks to encourage digitization of its services in its three markets across the region.
Speaking virtually at JMMB Group Limited third Quarter Investor Briefing, Duncan said despite the lingering uncertainty and operational challenges brought on by the Covid-19 pandemic, the Group improved its client experience and efficiency by maintaining focus on growing core revenue, diversification, and building out digital services, and solutions.
He adds that on the business banking line, the accommodation by Central Banks in the region with reasonable interest rates through its monetary policies this allowed for a favourable environment for trading portfolios and making gains on secure trading, and with JMMB standing as a primarily trading company, leveraging this allowed for it to perform well.
Duncan added that despite banks being under pressure in relationship to the slowdown in economies and how it impacted business activities, the bank remained relatively close to its clients across the group. Citing the slowdown in reopening of the economy in Trinidad and Tobago when compared to its markets in Jamaica and the Dominican Republic, Duncan says they were able to grow their banking lines with very low non-performing ratios, allowing them to stay close to their clients.
The JMMB Group posted net operating revenue of J$21.98bn for the nine months ending December 31, 2021, reflecting growth of J$5.44bn or 33 percent. All the revenue lines increased, especially net interest income, trading gains, fees and commission income.
Efforts to diversify contributors to profitability as well as drive growth across all business lines and operating territories continue to yield positive results. For the period, Jamaica contributed 57 percent to the Group’s net profit performance while the Dominican Republic and Trinidad and Tobago operations contributed 32 percent and 11 percent respectively.
Meanwhile, Jerome Smalling, Group Banking Lead, says the bank is grateful that is has not seen any significant impact to its non-performing ratios. As to positive achievements, the bank says the introduction of its smart ATMS across the region, completion of the upgrades in Jamaica and commencement of this in Trinidad and Tobago. Smalling says the ATMs provide a smoother digital flow in doing transactions through a tap feature with real time cash deposits. He adds the banking segment of its operations continue to operate with little to no fees attached at its ATMs, absorbing the costs associated with transactions. Standardization of its core banking systems, Trinidad and Tobago was introduced recently to the system and that include policies, products and protocols. He says soon all three territories will be on the same operating platform, which creates efficiencies in process reporting as well enhance solutions and better manage its banking portfolio across the three regions.
Going forward the bank says it will be focused on creating new digital experiences for its clients through the launching of payment products. Smalling added that JMMB has created a new digital experience through onboarding and is currently awaiting regulatory approval, once in receipt of approval the bank says it will have a clearer timeline for launch. While its currently working out the tweaks in the introduction of its mobile app, which also includes a digital wallet which he adds will help regulatory process with central banks for its digital currency.
The bank also took the opportunity to launch its partnership with Norbrook Transaction Services Limited, operators of the E-Pay solution that offers prepaid card services, e-wallet and single use-special cards. Smallings says this partnership will bring on board a range of products and solutions to the market, slated to be game changers.
The group’s Corporate Social Responsibility (CSR) committee in Trinidad & Tobago, spearheaded initiatives to continue supporting the less fortunate and vulnerable groups, and environmentally sustainable projects.
Among those benefiting were the Living Waters Cancer Hospice, and the Sustainable Studies in Action Environment Tobago project, which seeks to incorporate in a structured and creative manner of executing the 17 Sustainable Development Goals through the existing schools agriculture/ agri-science programme.
The JMMB Joan Duncan Foundation, in Jamaica, spearheaded several corporate social responsibility initiatives, with a focus on capacity building and community outreach. The Foundation joined with other corporate donors, in October, to assist to make the field hospital at University Hospital of the West Indies (UHWI) a reality, with a donation of approximately J$1.7m (US$12,000). This facility, caters to COVID-19 patients, and comes in response to the dramatic increase in hospitalization, as the country continues to go through waves of infections. Additionally, the Foundation pledged J$2m to the Rotary Club of St. Andrew North for the purchasing of a mobile unit on behalf of the Jamaica Cancer Society (JCS). This unit will assist the JCS to transport medical and support staff, equipment and supplies for screening, treatment and public awareness campaigns, in keeping with the organization’s mandate to provide treatment and prevent cancer across Jamaica. In the Dominican Republic, the corporate social responsibility efforts were largely geared towards support of entrepreneurship and assisting vulnerable individuals. With the launch of the new brand campaign, in that country, the Dominican Republic team, introduced a concept called “Murals of Change;” which saw JMMB partnering with local businesses and artists to paint external walls to beautify communities, while spreading the campaign message.