JMMB’s three cash cows!

September 8, 2022

JMMB Group says its operations in the Dominican Republic, Trinidad and Tobago and its stake in the Sagicor Financial Group have been the key drivers of its revenue and profit growth for the most recent quarter.

The group recorded a 2% increase in net profits for the June quarter, bringing in nearly $2 billion for the three-month period.

Speaking on Taking Stock with Kalilah Reynolds, Country Chief Financial Officer, Kashwayne Bryson said that Sagicor Financial Group (SFC) accounted for roughly 60% of its profits for the quarter.

As of June, JMMB Group has a 23.33% stake in SFC. Bryson said that the company contributed some $1.2 billion to its revenue for the three-month period.

“SFC has been significant for us and is a part of our initial strategic initiative to get this organic growth going,” he said.

Additionally, improvements in several key business lines in Trinidad and Tobago have added revenue to the Group’s bottom line.

Chief Strategy Officer at JMMB, Claudine Tracey said that the improvement has been in both the investment and banking arms of JMMB TT.

She noted that Trinidad and Tobago has a more stable inflation and interest rate environment than Jamaica, which allows the company to keep its products competitively priced.

Meanwhile, Bryson said JMMB’s operations in the Dominican Republic contributed a combined 25% to its total revenue.

“This was driven mainly by banking and mutual funds. Going forward, we expect that it will continue in that positive trajectory – both the mutual funds, banking and our investment arm,” he said.

Bell Bank acquisition

Bryson noted that this latest report does not include figures from the Group’s recent acquisition of Banco Múltiple Bell Bank SA in the country.

“Come Q2, we’re expecting to see the integrated numbers from the commercial bank and the savings and loan bank in DR,” he said.

Tracey said that while Bell Bank is a smaller institution with a small customer and asset base, the acquisition gives JMMB access to a commercial banking license in that country.

“It also gives us some strategic access to locations [in DR] where our savings and loans were not present, so it allows us to expand even more in the DR,” she said.

Additionally, Tracey noted that the acquisition gives the company banking experience in the Latin American market, which she said the company will use to target other markets across Central America.

Expansion plans

Tracey said that while the group keeps an eye out for expansion opportunities in new markets, it is also working on growing its suite of offerings to existing customers.

She said that JMMB’s eCommerce and point of sale solutions are in the pilot testing stage and a full rollout is expected before Christmas.

Similarly, Tracey said that business and personal credit cards are expected to be unveiled in 2023.

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Sashell Williams2024-03-19T19:31:10-05:00