Jamaica Money Market Brokers Limited (JMMB) has posted improved second quarter results due mainly to gains from securities trading, to bounce back from a disappointing first quarter.
For the September quarter the group generated gross profits of $327.2 million, an increase of 42 per cent over the first quarter ending June 30, 2007 and over 100 per cent improvement on the $154.2 recorded for the same period in 2006.
JMMB reported that the performance was spurred mainly by a 75 per cent gain on securities trading - which increased to $306.47 million from $173.75 million - along with increases in fees and commissions and share of profits from associated companies.
Additionally, the company reported reduced tax charges of $3.9 million, due to a write back of an over-provision of tax in one of the associated companies.
Net interest income increased marginally for the quarter by 1.7 per cent to $399 million moving from $392 million in 2006.
Net profit for the three months was reported at $331 million or 22 cents per share, up from $154 million or 11 cents per share in the September 2006 quarter.
Revenue lines grow
For the six months, the group returned net profit of $558.3 million or earnings per share of 38 cents, representing a 16.9 per cent increase compared to $477.6 million or 33 cents per share earned in the previous year.
The group experienced growth in all revenue lines resulting in a 13 per cent increase in operating revenue net of interest expense. Fees and commissions and margins from cambio trading increased by 48 per cent and 67 per cent, respectively.
"Increases in these areas reflects the company's continued efforts to diversify its revenue streams," said Chief Executive Officer Keith Duncan.
Administrative expenses were on the increase as well, moving to $521.8 million from $429 million, an increase of 21 per cent, while shareholders equity decreased to $6.67 billion from $6.71 billion due to differences in the decrease in investment valuation reserve versus retained profits.
The group's fair value reserves were impacted negatively by subsidiary company CMMB which recorded a deficit of $691.5 million due to inflationary conditions in the Trinidad and Tobago economy.
sabrina.gordon@gleanerjm.com
