Ashford W. Meikle, Staff Reporter
Keith Duncan, president and chief operating officer of JMMB. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
ITS INTEREST income is down by some four per cent but major financial player, Jamaica Money Market Brokers (JMMB) has returned a 39 per cent increase in its net interest income for its first quarter to June 30, 2005.
While interest income totalled $1.9 billion, compared to $2 billion for the comparative period last year, net interest income jumped to $554 million, compared to last year's $399.5 million.
There was some fluctuation in JMMB's other revenue streams. Income from net gains on securities trading declined by 42 per cent (from $151 million to $87 million) and fees and commission saw a dip of eight per cent (to $18 million). At the same time, the company's foreign exchange gains from its cambio operations jumped by 82 per cent, to almost $8 million.
REVENUE GROWTH
Notwithstanding the fluctuation in these sources of income, operating revenue went up by 16 per cent, to $668 million. Administrative expenses went up by 31 per cent while operating profit increased by just four per cent.
In their notes accompanying the results, president and chief operating officer, Keith P. Duncan and deputy chairman, Archibald Campbell, explained that the jump in administrative expenses was as a result of a "deliberate strategy associated with our business development expansion programme."
As an example of JMMB's expansion earlier this year (June), it officially opened its May Pen branch.
With a 61 per cent increase in other income, JMMB's pre-tax profit went up by 17 per cent, to $486 million. The growth in other income, Messrs Duncan and Campbell attributed to "significant benefits from [JMMB's] investments overseas." JMMB has significant holdings in Caribbean Money Market Brokers, (which operates in Trinidad and Barbados), as well as the InterCommercial Bank in Trinidad.
JMMB'S PROFITS
JMMB's after-tax profit increased by 105 per cent, to almost $442 million and, as a result, earnings per share for the quarter increased by 100 per cent.
Summing up JMMB's performance in the first quarter, Messrs. Duncan and Campbell noted that the growth in JMMB's after tax profit was driven by effective management of interest rate spreads, growth in asset base from expanded business, increased contribution from associated companies overseas and lower deferred tax provision.
With respect to its future plans, the company has expressed its intention to list on the Barbados Stock Exchange during this financial year. (JMMB was one of the first local companies to list on the Trinidad and Tobago Stock Exchange).
JMMB has also signalled its intention to focus on its clients, by concentrating on financial planning services. Speaking at JMMB's annual general meeting last month, Mr. Duncan said, "We're looking to empower clients to meet their goals. Every Jamaican must have a plan."
