JMMB Group Targets Lower Operating Costs Through Efficiency Measures

 

JMMB Group has reaffirmed its commitment to lowering the cost of doing business through sustained operational efficiency initiatives. The Group’s leadership, led by Chief Financial Officer (CFO) Patrick Ellis, outlined steps being taken to align expenses with revenue growth while maintaining scalability and profitability across its regional operations.

Key Details

During the company’s Annual General Meeting on October 10, 2025, CFO Patrick Ellis announced that JMMB Group is working to improve its operational efficiency ratio, with a long-term target of 65–70 percent.

“Our expense side, operational efficiency, and that is, as we said, part of our strategic objective… we try to ensure that our revenue grows faster than our expenses,” Ellis told shareholders. “Our operating efficiency ratio is not where we want it to be long-term. We want it to be in the 70s to 65 per cent.”

He noted that although staff costs fell by two percent, other key expense areas such as insurance, depreciation, and IT upgrades continued to drive up operational costs. These increases were primarily linked to JMMB’s digitalisation and standardisation initiatives aimed at modernising its infrastructure.

Ellis explained that these three cost categories—insurance, depreciation, and IT—accounted for approximately 70 percent of total expense growth. However, he assured investors that the company’s long-term focus remains on scalability and sustainable cost management.

“As a long-term strategic initiative, our goal is to ensure that we can grow on a scalable model,” Ellis said. “We expect to see an improved, efficient solution going forward.”

As of March 31, 2025, JMMB Group’s annual operating expenses increased by less than one percent, reaching J$23.82 billion, representing 94 percent of total revenues. The company posted an operating profit of J$1.4 billion for the financial year.

In the first quarter of fiscal year 2025/26, which ended on June 30, 2025, JMMB recorded an operating profit of J$542.66 million, indicating a turnaround in performance compared to previous quarters.

Background

JMMB Group, one of Jamaica’s leading financial institutions, offers services across banking, investments, and insurance in several Caribbean markets. The Group operates in Jamaica, Trinidad and Tobago, the Dominican Republic, and Barbados, maintaining a diversified regional presence.

Over the past two years, JMMB has been executing a multi-year transformation strategy designed to streamline operations, expand its digital ecosystem, and strengthen cost management frameworks. These efforts are intended to improve efficiency while supporting innovation and client experience.

The Group has also been refining its business model to better adapt to changing macroeconomic conditions, including high-interest-rate environments that have impacted the financial sector across the region.

Quotes

Ellis highlighted that JMMB’s diversification strategy continues to support overall performance.

“The core aspect of the group’s business continues to move in a positive direction,” Ellis stated. “On our diversification strategy, 56 percent of revenue now comes from Jamaica at J$30.5 billion, 20 percent from the Dominican Republic at J$11.2 billion, Trinidad contributes J$8.8 billion or 16 percent, and Barbados adds 8 percent or J$4.3 billion.”

He further explained that the diversification effort has allowed JMMB to reduce its exposure to local market risks and rely more on regional income streams.

Analysis

JMMB’s cost management and diversification strategies are aligned with regional best practices in financial governance. The company’s emphasis on scaling efficiently while maintaining profitability reflects a pragmatic approach to growth in a challenging economic environment.

The Group’s gradual reduction in staff costs and investment in digitalisation indicate a transition toward long-term sustainability, where automation and standardisation will likely yield improved margins. Meanwhile, the growth of non-Jamaican operations provides an additional buffer against domestic market volatility.

With an efficiency target of 65–70 percent, JMMB is setting clear benchmarks that could enhance investor confidence and long-term shareholder value.

Our Opinion

JMMB Group’s commitment to reducing operational costs demonstrates strong fiscal discipline and strategic foresight. By targeting scalable growth, leveraging technology, and maintaining geographic diversification, the Group is positioning itself for continued stability and profitability.

If effectively executed, these measures could not only lower the cost of doing business but also strengthen JMMB’s standing as one of the Caribbean’s most efficiently managed financial institutions.