JMMB reports $1.3b half-year profit

Sabrina Gordon, Business Reporter



Jamaica Money Market Brokers has reported net profit of J$1.3 billion for the first six months of its financial year up to September 2011, more than triple the J$454.7 million recorded for the comparative period last year.



"Management is indeed pleased in the continued growth in profitability as the six month results have exceeded prior period results by J$910.5 million or 200.2 per cent," the company said at the release of its half-year financial report.



Net interest income reflected year-on-year improvement to J$1.63 billion from J$1.06 billion, an increase of 53.8 per cent.



The company's profit performance traces back to improved interest margins and a doubling of securities trading income which rocketed from J$536 million to J$1.18 billion.



JMMB said efforts continued to diversify revenue streams and build fee income.

"The management team of the group remains committed to building core revenues, as can be seen in increases in gains from securities trading and other income from diversified business lines - pensions and JMMB Insurance Brokers (JMMB IB) - which reflected increases of 120.5 per cent and 27.2 per cent respectively," the company said.



Fee income and commission for the reporting period totalled J$108.7 million. Gains on securities trading more than doubled, to J$1.1 billion, while foreign exchange margins from cambio trading dropped slightly to J$63 million from J$78.7 million.



The company said that during the reporting period it also rolled out the newest product in its investment line, the JMMB car solution.



The company has a client base of more than 160,000 and assets of J$122.5 billion.



JMMB is in the process of acquiring Capital & Credit Financial Group Limited (CCFG), which will be its conduit to a banking licence in Jamaica if banking and financial regulators approve the deal.



sabrina.gordon@gleanerjm.com