Securities trading and investments were the driving force behind Jamaica Money Market Brokers (JMMB) Group’s success during the first three quarters of the 2021 financial year. 

 The company reported a net of profit of $8.82 billion for the three quarters ending December 2021, which is more than double the same period in the previous year. 

Speaking on Taking Stock with Kalilah Reynolds, business writer at the Jamaica Observer, David Rose said that the group’s performance was extremely impressive.

“JMMB has basically surpassed their entire 2021 financial year in nine months. They did $7.5 billion in net profits for the entire 2021 financial year and now they did $8.8 billion in nine months,” Rose said.

He noted that while all of JMMB’s revenue lines increased, the biggest gains were in trading.

The group’s trading gains grew by 45 percent to $7.15 billion, the company said, due to improved market activity. Additionally, fees and commission income was 58 per cent higher at $3.73 billion, reflecting increased economic activity as well as significant growth in managed funds and collective investment schemes across the group.

Strong performance in the company’s loan and investment portfolios also brought net interest income from $7.58 billion to $8.98 billion.

According to the company, Jamaica contributed 57 percent to its net profit performance; the Dominican Republic contributed 32 percent and Trinidad and Tobago, 11 percent. 

“And remember they’re going to have to report 23 percent of Sagicor Financial Company’s fourth quarter and first quarter net profits on top of their own existing net profits,” Rose added.

Sagicor Financial Company, which is an associated company of JMMB, has not yet released its audited results. 

However, CEO of Profit Jumpstarter, Keisha Bailey noted that JMMB stock price is not reflecting the positive news surrounding the company.

“The PE (price-to-earnings) is still extremely low, compared to what the financial numbers are showing,” she said, adding the core operations that drive JMMB have been improving.

“The fundamentals drive the performance of a company and JMMB’s fundamentals are strong and are improving. When you add in the associate companies, it’s going to be an even stronger financial picture but the PE is still indicating that the stock is fairly cheap,” she said.

Rose added that the company’s price-to-earnings ratio of roughly 6.9 times, is well below the industry average of 14 times. The analysts said that one of the contributing factors to JMMB’s PE could be the Trinidadian investors underutilizing the stock.

JMMB is cross-listed on the Trinidad and Tobago Stock Exchange and the Jamaica Stock Exchange. 

“You can buy the shares from Trinidad, for $53 carry it to Jamaica and sell it for $44 and get the US dollars… So although there is a steady demand, we just don’t know how many Trinidadians are looking to capitalize on that opportunity with JMMB to get access to US dollars,” Rose said.

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