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Financial services conglomerate JMMB Group Limited, JMMBGL, reported a net loss of $686 million for the June 2025 quarter, citing the Government of Jamaica’s asset tax and a downturn in its investment in a regional insurance powerhouse.
The loss, while notable, was narrower than the $1.5 billion net loss recorded in the prior year, which was also impacted by the asset tax and losses related to Sagicor Financial Company, SFC, which is the parent company of Sagicor Life, which operates across the Caribbean and Central America, as well as Sagicor Group Jamaica, and Sagicor USA.
JMMB Group accounts for the full year’s asset tax in the first quarter, amplifying its impact on early earnings.
“The distortionary non-income tax of $1.17 billion continues to be a drag on Jamaica and group profits,” the company said in its first quarter financial report.
Financial entities are taxed on their asset base. JMMB Group operates in four markets, inclusive of its primary base Jamaica, Trinidad & Tobago, Dominican Republic, and most recently Barbados, throughout which its asset spread tops $727 billion.
The company told the Financial Gleaner that it “has continuously voiced the need for the removal of the asset tax” with the Jamaican government.
Former Finance Minister Dr Nigel Clarke had previously signalled plans to phase out the tax, describing it as counterproductive and originally intended as a temporary measure. However, the proposed reduction was deferred in 2020 due to COVID-19-related fiscal pressures. When asked whether lobbying efforts have continued under current Finance Minister Fayval Williams, JMMB Group referred the Financial Gleaner to the Jamaica Securities Dealers Association.
JMMBGL’s quarterly loss came despite a 32 per cent increase in net operating revenue to $7.5 billion.
While the operating environment continued to be characterised by elevated uncertainty – particularly related to geopolitical conflicts, tariff wars, volatile oil prices, and persistently high interest rates – the group continued to execute on strategies to ensure that its financial performance remained credible,” the company said.
The group absorbed a $251 million share of Sagicor Financial’s reported downturn, with total associate losses amounting to $290 million.
“SFC’s core earnings continue to be strong; however, they were impacted by market volatility in the United States and Canada during the reporting quarter,” the report noted.
Despite the headline loss, JMMBGL spotlighted its operational strength – net interest income rose 30 per cent to $3.51 billion, securities trading gains climbed 46 per cent to $1.9 billion, and foreign exchange margins surged 69 per cent to $546 million.
“Growth in operating revenues outstripped growth in operating expenses,” the croup said, citing cost containment and portfolio rebalancing for that outcome.
Among its four markets, Jamaica contributed half of gross operating revenue, followed by the Dominican Republic with 21 per cent.
The group remains optimistic about its capital position, which rose to $60.1 billion from $51 billion a year earlier. Cash holdings remain stable at $58 billion, and its operations generated $11.3 billion in cash for the period – reversing last year’s $1.8 billion outflow. JMMB Group said it remains “vigilant” in its risk management and adapting to changes.
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