EPLY reports 71% increase in six months net profit

Date: August 14, 2019

Eppley Limited (EPLY), for the six months ended June 30, 2019 reported Interest Income for the period at $179.67 million from $149.80 million the previous year, a 20% increase. While for the second quarter interest income amounted to $87.84 million relative to $76.09 million in 2018.

Interest Expenses amounted to $95.14 million, up 15% from $82.99 million for the corresponding period in 2018. While, for the quarter, interest expense closed at $49.83 million (2018: $37.89 million).

Consequently, net interest income rose 27% to $84.54 million, up from $66.81 million in the corresponding period of 2018. Net interest income for the second quarter amounted to $38.01 million relative to $38.20 million for the corresponding quarter of 2018.

Other operating income went up by 117% to total $74.13 million relative to $34.22 million in 2018, while administrative expenses increased by 42% to close at $84.42 million (2018:$59.27 million).

Share of net profit from joint venture accounted for using the equity method amounted to $3.45 million relative to $2.87 million the year prior.

As such, pre-tax profit closed at $77.70 million for the six months ended June 30, 2019, 74% more than the $44.62 million booked in 2018. Taxes for the six months ended June 30, 2019 amounted to $1.27 million relative to no taxes for the prior period and as such net profit amounted to $76.43 million, relative to net profit of $44.62 million in 2018. While second quarter net profits amounted to $70.16 million relative to $23.94 million in last year.

Earnings per share for the six months ended June 30, 2019 totalled $0.40 compared to $0.23 for the corresponding period in 2018, while earnings per share for the quarter amounted to $0.36 (2018: $0.12). The trailing twelve months EPS is $0.79 (2018: $0.43). The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY closed the trading period at $17.00 on August 14, 2019.

The Company highlighted, “At the end of the quarter we owned a $3.6 billion investment portfolio consisting of loans, leases, receivables and investments in our real estate and asset management joint ventures and subsidiaries.”

In addition, Eppley further stated, “we also managed the equivalent of US$46 million of committed capital for investors at the end of the first quarter through the Caribbean Mezzanine Fund and the Eppley Caribbean Property Fund.”

Balance Sheet Highlights:

As at June 30, 2019, total assets amounted to $3.71 billion, 26% more than last year’s $2.95 billion in 2018. This was attributed by a rise in Loans receivables of $446.96 million to close the period at $1.49 billion (2018: $1.04 billion). However, the decline in Investment Securities has tempered with the overall increase in the company’s assets, amounting to nil (2018: $325.17 million).

Shareholder’s Equity increased by 9% for six months period, totalling $776.57 million compared to the previous year’s total of $711.02 million, this resulted in a book value per share of approximately $4.03 relative to $3.69 in 2018.


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