JMMBGL Reports 46% Increase Year End Net Profit Attributable to Shareholders

JMMB Group Limited (JMMBGL) for the year ended March 31, 2017 recorded net interest income of $6.77 billion compared to $5.50 billion in 2016, an increase of 23%. This as interest income grew by 10% to close at $14.71 billion, from the $13.34 billion booked in 2016, while interest expenses rose 1% to total $7.94 billion relative to $7.83 billion in the prior year.   For the quarter the company recorded a 17% improvement in interest income to $3.99 billion (2016: $3.41 billion), while interest expense increased 7% to $2.30 billion (2016: $2.14 billion). Net interest income for the fourth quarter rose 33% from $1.28 billion to close at $1.70 billion.

Fees and commission income amounted to $918.30 million, an improvement of 23% on the $749.14 million last year. Foreign exchange margins from cambio trading posted an increase of 30% year over year to close at $1.22 billion (2016: $934.83 million), while net gains from securities trading showed an increase of 34% totaling $5.38 billion (2016: $4.02 billion).

Dividend income for the period totaled $31.26 million an increase of 30% compared to a total of $24.02 million a year ago. Fees earned on managing funds on behalf of clients amounted to $369.01 million (2016: $218.25 million).

Operating expenses amounted to $10.45 billion, increasing by 19% (2016: $8.78 billion) which led to operating profit of $4.25 billion, a significant increase when compared to the $2.68 billion booked the year prior. Of total expenses, staff costs increased 23% to $5.39 billion (2016: $4.37 billion) while other expenses climbed 15% to $5.06 billion (2016: $4.41 billion). Notably, expenses for the quarter rose 14% from $2.48 billion for the period ended March 31, 2016 to $2.83 billion for the corresponding period in 2017.

The company booked impairment losses on financial assets of $8.75 million (2016: $61.81 million) and a loss on acquisition of net assets of overseas entity of$87.65 million. Furthermore a gain on disposal of property, plant and equipment of $5.18 million was booked in contrast to a loss of $5.66 million a year earlier. As such profit before taxation improved 60% year over year to close at $4.16 billion, relative to $2.60 billion the prior year. Following taxation of $805.52 million for the year, net profit amounted to $3.35 billion compared to $2.30 billion in 2016. Net profits for the quarter totaled $667.11 million, an increase of 18% on the $566.51 million recorded for the corresponding period in 2016.

Net profit attributable to the shareholders of the company totaled $3.31 billion relative to $2.26 billion in 2016. For the quarter, net profit attributable to shareholders amounted to $662.56 million a 17% growth on the prior year’s corresponding quarter amount of $563.89 million. As a result, earnings per share for the year amounted to $2.03 (2016: $1.39) while EPS for the quarter amounted to $0.41 (2016: $0.35). The number of shares used in the calculations amounted to 1,630,552,530 units.     

 

Balance Sheet at a glance:

Total assets as at March 31, 2017 amounted to $251.56 billion relative to $230.61 billion in 2016.  The increase in the asset base was driven by a 9% of $14.60 billion increase in investment securities to $171.57 billion (2016; $156.98 billion). Notably, loans and notes receivables also increased, moving from $337.45 in 2016 billion to $47.13 billion as at March 31, 2017.

Shareholders’ equity totaled $25.91 billion (2016: $21.92 billion). As a result, book value per share stood at $15.89 (2016: $13.45).

 

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