2 months ago
22
Financial conglomerate JMMB Group Limited reported a net loss of $1.5 billion in the June quarter, primarily due to a one-off share of losses from its associate.
The core operations of JMMB were largely positive, but its associate led the group into losses.
“This positive achievement was offset as the group’s associated company, Sagicor Financial Company Limited, suffered a net loss for the quarter,” JMMB said in its first-quarter financial report.
The group owns 23.6 per cent of Sagicor Financial, an insurance conglomerate with tentacles across the Caribbean, the United States, and Canada. The associate loss was mainly on account of marked-to-market and actuarial adjustments, JMMB said.
“The operating environment continued to be challenging especially as it relates to global interest rates, which continued to be sustained at elevated levels. Thus, interest margins remained under pressure, and trading activities continued to be adversely affected,” said JMMB, which is also in the business of investment services, banking, and insurance brokerage.
Net operating revenue for the group declined by 19 per cent to $5.66 billion in the June first quarter.
The group now has total assets of $680 billion, inclusive of shrinking capital of $50.8 billion, down from $56 billion a year earlier. The reduction in capital was due to the loss during the period and lower asset prices, which adversely impacted investment revaluation reserves.
“Nevertheless, the group continues to be adequately capitalised, and all individually regulated companies within the group continue to exceed their regulatory capital requirements,” JMMB said.
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