JMMB Bank auctioning 73 cars
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JMMB Bank wants to sell 73 repossessed cars valued at $250 million, the second publicised auction in a month from the banking sector.
The inventory ranges from a $370,000 Mitsubishi to a $15 million Porsche.
"There is nothing unusual about the listing contained in the stated newspaper advertisement," said JMMB chief marketing officer Kerry-Ann Stimpson in response to Financial Gleaner queries. She declined to speculate on whether the repossessions reflected a fallout from Hurricane Melissa or individual consumer stress.
"We have never surveyed buyers about their purchasing decisions, we will not speculate about their decision-making processes or buying behaviour," she said.
The vehicles span model years from 2015 to 2026 and are being offered at three locations across Kingston. The listing represents a window into auto-loan stress for some consumers. For the bank, it signals the cost of recovering bad debts.
JMMB Bank lists assets for sale under private treaty on its website but also uses newspaper advertisements to expand its reach.
"We have found that this dual-channel approach to communication has successfully helped to maximise the awareness of the assets' availability for bidding, which increases the likelihood of their being sold," Stimpson added.
What is on the list
The JMMB inventory is weighted towards mid-priced SUVs and passenger vehicles, but the price range tells a cross-income story. At the upper end are a 2021 Porsche Cayenne at $15 million, a 2022 BMW X6 at $12.4 million, a 2023 Audi A4 at $7.17 million, a 2022 Hyundai Palisade at $7.05 million, a 2019 Audi Q8 at $6.83 million, and a 2023 Kia Sorento at $6.74 million. The concentration of premium vehicles signals that repayment stress has reached beyond entry-level borrowers.
Mid-tier listings include a 2024 Honda BRV at $5.4 million, a 2022 Honda Accord at $5.4 million, a 2020 Toyota Harrier at $5.47 million, and a 2021 Volkswagen Tiguan at $5.36 million. At the lower end, a 2015 Toyota Probox is listed at $530,000, a 2015 Honda Civic at $550,000, and a 2017 Mitsubishi Attrage — the cheapest vehicle — at $370,000.
Honda is the most represented make with 14 entries across the Civic, Accord, CR-V, and BRV models, followed by Hyundai with 13 entries and Kia with eight. The inclusion of multiple 2022 to 2024 models — and a 2026 Nissan Qashqai at $6.23 million — suggests recent loans are represented in the repossession pool, with some borrowers defaulting on vehicles purchased within the past two years.
What the financials show
Following Hurricane Melissa last October, the bank granted moratoria of up to three months to affected clients. Over the nine months to December, JMMB Bank's loan portfolio grew 9.0 per cent to $236.2 billion. Loan impairment charges related to Melissa have not yet been disclosed; write-offs rose 25 per cent to $1.5 billion for the year ending March 2025. The bank did not disaggregate the portion related to car loans.
Across the nation's eight banks, non-performing loans (NPLs) — debts unserviced for 90 days or more — fell to $37 billion in March, below both February and year-earlier levels. It represents less than 2.8 per cent of total loans system-wide, well below the 10 per cent threshold considered problematic by the banking regulator.
Within the household and individual loan category, which includes car loans, NPLs dropped to $23.5 billion from $29 billion in February and $28 billion a year earlier.
Vehicles are available for viewing at KACS Group Corporation on Dunrobin Avenue; JAMZONE Limited on Hagley Park Road; and Original Auto Source on Roosevelt Avenue, all in Kingston. Written bids can be submitted to jmmbbids@jmmb.com.
Last month, National Commercial Bank offered some 110 cars at auction at Nihon Trucking on Constant Spring Road, Kingston.