JN Financial Group Resilient and Focused on the Future

Audited financial statements of the JN Financial Group (JNFG) for the financial year ending March 31, 2024, published on the JN Group website, outline that for a third consecutive financial year, JNFG- the financial holding company within the JN Group– has faced a loss. 

These losses were magnified by impairments of investments in three loss-making entities, namely: JN Bank UK, JN General Insurance Company (JNGI) and JN Fund Managers. 

However, it is important to note that the JNFG remains committed to adapting, innovating and strengthening its position for the future with a strong focus on resilience and long-term growth in its banking, remittances and life insurance businesses.

Contributing factors    

The losses experienced were triggered by a domino effect of events, which began in 2020. In addition to the COVID-19 pandemic itself, the companies’ performances were challenged by various issues, including fair value adjustments on some assets that resulted in losses on bonds issued by the Government of Jamaica (GOJ), and consequential losses from a series of interest rate increases by central banks. The JN Group also faced increased operational costs due to inflation, credit losses, staff costs, a substantial increase in the cost of regulatory compliance and cybersecurity expenses, all while undertaking the expenses of transforming its operations. 

JN Bank UK and JNGI also faced additional unique challenges: 

• JNGI experienced significant increases in claims costs due to the continued high numbers of crashes arising from poor driver behaviour 
• JN Bank UK faced significant credit losses, as the British economy experienced a sharp decline following the COVID-19 pandemic 

JN Bank UK was sold in September 2024 and the sale of JNGI is advanced and subject to regulatory approval. Meanwhile, solutions to prepare key business lines of JN Fund Managers for the future continue to be explored.

With these strategic divestments and other forward-thinking initiatives, JNFG is on track to achieve a significantly improved position no later than the end of the financial year, March 31, 2026. 

Core companies profitable and secure

The management and board of the JN Group have thoroughly assessed the situation, taken decisive action, and are well advanced in executing effective strategies, including the divestment of non-performing entities, while sharpening the organisation’s focus on its core banking and remittance businesses.   

JN Bank is driving its revenue through the introduction of innovative solutions, while JN Money Services continues to expand its presence across the US, Caribbean and Africa.  

Overall, the JN Group remains a strong and resilient entity with the JN Financial Group being a dominant player, especially in the residential mortgage business and remittance services. 

Our more than 1 million members and customers continue to enjoy the peace of mind that comes with being a member of the JN Group.

JN Fund Managers’ clients do not invest directly in the company. The company acts as an intermediary for clients to invest in various assets, such as GOJ bonds, Bank of Jamaica (BOJ) certificates of deposit and equities on the local and international stock exchanges. JN Fund Managers is also an asset manager for pension funds and other interests that have independent governance structures. Assets are held in the names of investors which are registered by the Jamaica Central Securities Depository and the BOJ. 

Although JNGI is in the process of being sold, the company’s capital meets the Financial Services Commission’s Minimum Capital Test Reporting at 221 per cent as of December 2024. This is above the minimum requirement of 150 per cent and, therefore, policyholders are protected by the assets and reserves at JNGI.   

JN Bank (Jamaica) is resilient and well capitalised, as monitored by the BOJ. Its liquidity ratio (for all currencies combined) is 199 per cent, above the benchmark of 100 per cent.

Confident in the future

The JN Financial Group is keenly focused on the future. It is concentrating on driving profits, is reorganising for efficiencies, and expanding its profitable business lines, including its remittance business, JN Money Services, into new markets. It is also expanding its profitable life insurance business, JN Life Insurance. 

JN Bank’s audited financial statements show a profit of $1.2 billion. It continues to be a dominant provider of home loans and has started to reap the benefits from investments in technology to automate loan decisioning. This is in addition to the recently introduced ONE JN Passport, an app which empowers persons to open accounts and manage their personal information. JN Bank is poised to offer best-in-class customer service. The JN Group has invested significantly in technology to create a state-of-the-art merchant acquiring platform, provide modern debit and credit card payment services, and a comprehensive payment platform which integrates most services in an easy-to-use digital wallet. The bank has also invested in other technologies to improve efficiencies, manage customer relationships and its after sales processes.  

The proceeds of the divested assets will provide the capital to complete the achievement of the expansionary objectives, while positioning the organisation to adapt to the new digital age. The technology will be used strategically to strengthen the experience of its more than 1 million members and customers located in Jamaica and overseas. 

At 150 years, the JN Group is resilient and independent, and has never required government intervention to meet its obligations. It is robust and continues to enrich the lives of Jamaicans locally and overseas through the great people it employs, twinned with world-class technology. This is not a time to bet against JN!