JMMBGL’s 9M Profits Surge While PROVEN’s Earnings Face Melissa Disruptions

  • For the nine months ending December 2025 (9M 2026), JMMB Group Limited (JMMBGL) more than doubled its earnings to $4.36Bn (+150.8%), while Proven Group Limited (PROVEN), which has a 20.0% stake in JMMBGL, saw a 39.2% earnings dip to US$1.45Mn amidst Melissa Disruptions.
  • JMMBGL’s earnings growth reflected improved funding mix and disciplined capital allocation. These improvements led to a 69.9% increase in pretax earnings from its Banking & Related Services business segment as digital banking services usage and sales productivity increased. Consequently, a 38% surge in Net Interest Income (NII), an 8% rise in fees and commissions, and a 41% jump in fixed income trading gains supported a 23.4% increase in core revenues.
  • Meanwhile, the group contained the increase in operating expenses to just 6.4% to J$18.89Bn, reflecting inflationary increases and spending on longer-term strategic initiatives aimed at improving the posture and positioning of the Group1.
  • With revenue significantly outgrowing OPEX, operating profit doubled to $3.56Bn. A similar doubling of the share of profit of associates to $3.48Bn2, which countered a 15.3% increase in impairment losses on financial assets and a $1.06Bn increase in tax expenses, also contributed to the group's earnings leap.
  • Notwithstanding the growth in JMMBGL’s earnings contributions, hurricane-related disruptions, elevated funding costs, and a slowdown in its manufacturing segment, which weighed on PROVEN’s core operations and caused 39.2% earnings decline for 9M 2026.
  • Net operating revenues – which comprise NII, gross profit on manufacturing and property as well as other income – fell 5.4% to US$40.70Mn. NII declined by 19.4% amid elevated funding costs, but the company sees its 6.2% reduction in interest expense as a signal of early cost normalisation. Such a normalisation could support margin expansion into FY2027. Fee and commission income fell 21.7%, due to hurricane-related disruptions to PROVEN’s Cambio operations in Montego Bay. Reduced tourist arrivals and business interruptions dampened transaction volumes and FX trading income in the December quarter. Its Manufacturing operations, led by Roberts Manufacturing in Barbados, also declined by 7.7% to US$13.08Mn. The weight of these declines eroded the impact of a tripling of Net Fair Value Gains to $US4.05Mn, resulting in a negative operating revenue of US$2.66Mn.
  • Concurrently, PROVEN’s OPEX rose 7.9%, owing to higher staff costs, depreciation and amortisation, and other operating expenses. As a result, the group had a US$2.66Mn operating loss. Nonetheless, a US$5.66Mn profit contribution from associates like JMMBGL, and, to a lesser extent, Access Financial Services (AFS) significantly cushioned earnings.
  • Looking ahead, PROVEN’s management noted that it will continue to execute on strategic priorities that position it for an improved earnings trajectory. Major catalysts include the near-completion of the Sol Harbour and Bahari Phase 1 developments, which are expected to generate approximately US$4.2Mn in profits, primarily in the March 2026 quarter. Management also continues to implement targeted efficiency initiatives set to take effect late FY2026 and into FY2027 to enhance operational leverage and, with it, core operating profit.
  • Since the start of the year, PROVEN and JMMB’s stock price has decreased by 17.01% and 12.29% to close at $12.73 and $16.846. At this price, PROVEN trades at a P/B of 0.55x, while JMMB trades at a P/E of 0.53x – both below the Main Market Financial Sector Average of 1.1x.

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1This includes its digital transformation, standardisation, and centralisation programme, as well as optimising its sales productivity through the continued integration of the sales segments.

2JMMBGL owns a 24.49% interest in Sagicor Financial Company Limited (SFC).

(Sources: PROVEN & JMMB Financial Release, NCBCM Research)