May 16, 2022
Eppley Limited (EPLY) for the three months ended March 31, 2022, reported interest income of $114.68 million a 61% increase when compared to $71.39 million recorded for the corresponding period in 2021.
Interest expenses for the period amounted to $69.74 million, a 29% increase when compared to $54.05 million recorded in the prior year.
Consequently, net interest income for the quarter rose 159% to total $44.94 million up from the $17.34 million recorded in the corresponding period of 2021. EPLY noted, “Net interest income continues to be complemented by the recurring, predictable fees we earn managing or administering assets in our real estate, mezzanine and infrastructure strategies.”
Fees and other operating income for the period under review amounted to $37.41 million versus $10.82 million reported in 2021.
Administrative expenses rose 15% for the quarter to close at $56.73 million up from $49.51 million recorded for the first quarter of 2021. Also, ‘Net impairment losses of financial and contract assets’ amounted to $165,000 for the period under review relative to a gain of $285,000 for the same period in 2021. Asset management income closed at $67.43 million (2021: $73 million).
As such, pre-tax profit closed at $92.88 million for the first three months of 2022, 79% greater than the $51.93 million booked in 2021. Taxation at the end of March 2022 amounted to $1.27 million (2021: $1.04 million), resulting in a net profit attributable to shareholders of $91.62 million, an increase of $40.73 million or 80% from the $50.88 million recorded for the same quarter in 2021.
Total comprehensive income for the three months ended March 2022 closed at $89.78 million, a 76% increase when compared to $50.92 million booked the corresponding period.
Earnings per share for the quarter amounted to $0.48 (2021: $0.26). The trailing twelve months earnings per share amounted to $1.52. The total amount of shares outstanding used for this calculation was 192,468,300 units. Notably, the stock price for EPPLEY closed the trading period on May 16, 2022 at JMD $45.58 with a corresponding P/E ratio of 30.01 times.
EPLY noted, “As interest rates rise in response to inflation, we expect Eppley’s net interest income margins to widen. As credit conditions tighten, we also expect Eppley to originate more attractive risk adjusted returns in our credit, mezzanine, infrastructure and real estate strategies.”
Balance Sheet Highlights:
As at March 31, 2022, total assets amounted to $5.34 billion, relative to the $4.29 billion recorded a year ago. The 24% increase in assets was driven primarily by ‘Lease Receivable’, which climbed by 136% to close at $1.67 billion (2021: $708.85 million).
Shareholder’s Equity as at March 31, 2022, totalled $976.55 million (2021: $895.17 million) resulting in a book value per share of approximately $5.07 relative to the $4.65 reported in 2021.
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