- For its financial year ending March 2021, JMMBGL reported a 7.3% (or $512.34Mn) YoY increase in net profit attributable to shareholders to $7.51Bn (EPS: $3.84). This was driven by 4.3% expansion of operating revenue, an 8.8% reduction in operating expenses and a $1.69Bn increase in the share of profit from associate (Sagicor Financial Corp).
- Net interest income (12.7% or $1.18Bn), and gains on securities trading (10.0% or $615.56Mn) as the company capitalized on trading activities were the main drivers of the expansion in operating revenues. Additionally, a $315.06Mn rise in the net gain from financial assets at fair value, which is a turnaround from a net loss of $267.98Mn in the prior year, also bolstered the revenue performance.
- The containment of operating expenses also played a role in the positive outturn, with expenses declining by 8.8% (or $1.40Bn), largely due to a drop in staff costs (15.0%). The Group continued to focus on extracting operational efficiencies across all entities through the launch of its standardization and process improvements project.
- The market has been reacting to the positive results. Since its posting on June 15th, the stock has appreciated by over 11.0%, however year to date, it has risen by just 7.0% to $37.14 as at yesterday’s close. This translates to a P/E ratio of 9.7x earnings, which is below the main market financial sector average of 17.7x earnings.
(Source: Company Financials)