PJAM reports 26% increase in nine months net profit attributable to shareholders

Date: November 15, 2018

PJAM Investment Limited (PJAM), for nine months ended September 30, 2018, reported a 68% increase in total income to $2.67 billion from the $1.59 billion booked for the prior year’s corresponding period. For the quarter total income increased 143% to $1.56 billion (2017: $643.48 million).  Of total income:Other income slid 8% from $104.52 million to $95.89 million. The company highlighted this was, “driven by non-recurrence of insurance and loan recoveries.”

Investments rose 265% to close at $1.21 billion (2017: $331.58 million). According to PJAM “The improvement mainly reflects higher unrealized and foreign exchange gains. Year to date investment income of $1,209 million more than doubled (2017: $332 million), due to improved unrealized and foreign exchange gains and dividend income, which offset reduced realized gains and interest income.”

No Income from commissions was recorded for the period relative to $37.21 million reported in the 2017.

Operating expenses amounted to $1.21 billion for the nine months ended September 30, 2018 (2017: $1.05 billion), 15% more than its total a year prior. Operating expenses for the quarter increased 22% to close at $430.47 million (2017: $352.61 million).

Consequently, operating profits increased by 170% for the period to a total of $1.47 billion relative to $542.92 million a year earlier, while for  the quarter operating profit increased 289% to $1.13 billion (2017: $290.87 million).

Finance costs for the period rose by 1%, amounting to $447.35 million compared to the $441.18 million for the comparable period in 2017.  “Resulting from higher average debt balances mostly offset by lower interest rates”, Management noted.

Share of results of associated companies increased marginally by 1% to $2.99 billion relative to $2.97 billion reported in the previous year.  PJAM noted, “This includes the nine-month total share of earnings from Sagicor of $2,757 million, 3% lower than the prior year figure of $2,839 million. Sagicor’s results reflect generally strong business line performances offset by write-downs relating to certain financial instruments, particularly Barbadian sovereign bonds.”

Profit before taxation increased 32% closing the period at $4.06 billion (2017: $3.07 billion).  Following taxation of $297.99 million (2016: $54.67 million), Net Profits amounted to $3.76 billion (2017: $3.01 billion). Net profit for the quarter amounted to $1.94 billion compared to $1.23 billion booked in 2017.

Net Profit Attributable to Shareholders for the period amounted to $3.74 billion, a 26% increase over the $2.97 billion recorded the year prior. For the third quarter, profit attributable to shareholders amounted to $1.93 billion relative to $1.22 billion reported in 2017.

Consequently, earnings per share for the period amounted to $3.51 (2017: $2.79), while third quarter EPS amounted to $1.81 (2017: $1.14). The trailing twelve months earnings per share was $4.59. The number of shares used in the calculation is 1,066,159,890 units. PJAM closed the trading period on November 14, 2018 at a price of $65.18.

Balance Sheet at a glance:

As at September 30, 2018, PANJAM Investment Limited (PJAM) had assets totaling $45.28 billion, a 25% increase relative to $36.36 billion a year prior. The growth was attributed to an increase in investment in associated companies and investment properties which amounted to $7.79 billion (2017: $3.05 billion) and $8.04 billion (2017: $6.40 billion) respectively.

Shareholders Equity amounted to $33.08 billion (2016: $28.69 billion) with a book value per share of $31.02 (2017: $26.91).

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