PJAM books 2% growth in nine months net profit attributable to shareholders

PANJAM Investment Limited (PJAM) for nine months ended September 30, 2017 reported a 22% increase in total income from $1.30 billion relative to $1.59 billion booked for the prior year’s corresponding period. For the quarter total income increased 57% to $643.48 million (2016: $409.90 million).  According to PJAM, “the year to date growth was due mainly to a 22% increase property income from $918.17 million to $1.12 billion which was, higher rental income resulted from more space leased on average as well as contractual rate increases; revaluation gains benefited from improving occupancy; and net lease income (i.e. expense reimbursement) was driven higher mainly by increased utility costs.” Of total income:

  • Other income slid 1% or $1.35 million from $105.87 million to $104.52 million. The company highlighted this was, “driven by collection of amounts previously written off, but is flat for the year to date because of non-recurrence of one-off fee income.”
  • Investments rose 38% to close at $331.58 million (2016: $239.75 million). According to PJAM this was attributed to, “the improvement mainly reflects higher dividend income, realized and unrealized gains, while last year’s results were depressed by certain impairment charges.”
  • Income from commissions amounted to $37.21 million a 5% decline compared to the $39.12 reported in the 2016.

Operating expenses amounted to $1.05 billion for the nine months ended September 30, 2017 (2016: $933.86 million), 12% more than its total a year prior. Operating expenses for the quarter increased 10% to close at $352.61 million (2016: $321.59 million).

Consequently, operating Profits increased by 47% to a total of $542.92 million relative to $369.02 million a year earlier, while for  the quarter operating profit increased 229% to $290.87 million (2016: $88.31 million).

Finance costs for the period rose by 14%, amounting to $441.18 million compared to the $388.02 million for the comparable period in 2016.

Share of results of associated companies rose 22% to $2.97 billion relative to $2.43 billion reported in the previous year.  PJAM noted, “this includes the nine-month total share of earnings from Sagicor of $2,839 million, 23% higher than the prior year figure of $2,307 million. Sagicor’s improved results reflect strong performances in employee benefits and individual insurance lines as well as reserve releases now effected on a quarterly basis. New Castle, Caribe and Chukka all performed satisfactorily during the period.”

Profit before taxation decreased 6% closing the period at $3.07 billion (2016: $3.26 billion). This was due to a gain on disposal of an associated company of $851.08 million recorded in 2016.  Following taxation of $54.97 million (2016: $51.66 million), Net Profits amounted to $3.01 billion (2016: $3.21 billion). Net profit for the quarter amounted to $1.23 billion compared to $1.59 billion booked in 2016.

Net Profit Attributable to Shareholders for the period amounted to $2.97 billion, a 2% increase over the $2.91 billion recorded the year prior. For the third quarter, profit attributable to shareholders amounted to $1.22 billion relative to $1.32 billion.

Consequently, earnings per share for the period amounted to $2.79 (2016: $2.73), while the third quarter amounted to $1.14 (2016: $1.23). The trailing twelve months earnings per share was $3.86. The number of shares used in the calculation is 1,066,159,890 units.


Balance Sheet at a glance:

As at September 30, 2017, PANJAM Investment Limited (PJAM) had assets totaling $36.36 billion, a 13% increase relative to $32.29 billion a year prior. The growth was attributed to an increase in investment in associated companies and securities purchased under agreements to resell which amounted to $23.52 billion (2016: $20.89 billion) and $878.82 billion (2016: $147.86 billion) respectively.

Shareholders Equity amounted to $28.69 billion (2016: $25.77 billion) with a book value per share of $26.91 (2016: $24.17).



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