The JMMB Group has recorded J$780 million (TT$35.1 million) in net profit for the three months ended June 30, 2020.
This represented a 36.7 per cent decline when compared to the same period in 2019 (J$1.118 billion or TT$50.4 million).
In the directors statement, Chairman Archibald Campbell and Group Chief Executive Officer Keith Duncan said: “Despite the COVID-19 pandemic and its impact on the global and local economy, the JMMB Group delivered credible results for the three months ended June 2020.”
JMMB recorded operating profit of J$1.1 billion (TT$49.9 million). This represented a 39.4 per cent decline relative to the prior period (J$1.846 billion or TT$83.1 million) as the company noted that its first quarter was characterised by low business activity.
The directors noted, however, that there was an increased focus on convenience whereby the financial institution encouraged its clients to use its Moneyline platform, which resulted in strong growth in new users and increased access by existing users.
Furthermore, the directors stated: “the pandemic served as a catalyst for the expansion of our digital footprint as during the quarter we launched Real Time Equity Trading.”
The application furnishes JMMB clients with added capability of executing equity transactions in real time with the Jamaican Stock Exchange.
The group noted that it continued to support its clients, largely through its digital marketing initiatives, with timely and sound financial advice as they navigate a period of heightened uncertainty.
JMMB added that client loyalty remained high during the period and was evidenced by strong growth in its clients’ funds under management. Customer deposits saw a 4.5 per cent increase of J$4.9 billion (TT$220.7 million) when compared with the same period in the previous quarter.
The company’s financial statements also highlighted that its share of profit from Sagicor Financial Corporation Ltd (SFC) was also adversely impacted by the pandemic, which resulted in a share of losses amounting to J$8.9 million (TT$0.4 million) for the quarter.
The directors noted the loss “was primarily related to higher Expected Credit Losses (ECLs) due to the pandemic as well as an internal reinsurance transaction that resulted in a strengthening of the reserves.”
They continued: “However, we are confident that this position will soon return to profitability and materially contribute to shareholders’ value in a positive manner.”
For the upcoming quarter, Campbell and Duncan said they expect uncertainty to persist in the financial space as the progression of COVID-19 and its continued impact on economies are yet to be determined.
They noted that the JMMB Group will continue to bolster its financial position by solidifying its strong capital base and increasing liquidity position, ensuring that it is equipped to deal with any adverse situations