February 09, 2018
Reported in US$ (except where it is indicated otherwise)
Proven Investments Limited (PROVEN) for the nine months ended December 31, 2017 reported interest income of $21.09 million, a 12.65% or $2.37 million increase when compared with the $18.73 million reported for the same period in 2016. Total interest income for the quarter amounted to $7.33 million reflecting an increase of 20% over the $6.13 million achieved in the corresponding quarter of the previous year.
Interest expense for the period amounted to $6.74 million, an 18.05% decrease when compared to the $8.22 million booked for the comparable period in the prior year. As such, net interest income for the nine months ended witnessed a 36.66% or $3.85 million increase to total $14.36 million relative to the $10.51 million in the corresponding period of the previous year.
Gain on securities trading improved by 44.68% to total $3.26 million relative to the $2.25 million recorded for the comparable period for the previous year. Dividend income amounted to $683,435, a 36.12% decrease from the $1.07 million recorded in 2016, while Fees & Commission income notably increased by 126.4% to $4.15 million relative to $1.83 million in 2016. Net foreign exchange loss amounted to $297,268 relative to a gain of $1.85 million recorded in 2016.
Other income moved from $942,368 to total $1.77 million for nine months ended December 31, 2017, a vast increase of 88.31%. Proven booked an increase in pension management income to total $1.72 million, up from $1.44 million booked last year for the same time period.
Consequently, net revenue increased by 28.86% to total $25.640 million compared to $19.90 million recorded for the corresponding period in 2016. For the quarter, Net Revenue rose 43% to $8.05 million relative to $5.63 million in 2016.
Operating Expenses climbed by 40.45% for the period to total $16.52 million relative to $11.76 million in 2016. According to management, “this increase was mainly due to the inclusion of the operations of BOSLIL bank in this year’s results and increase in loan loss provisions over the period.” Of this, Administrative and General Expenses recorded a 44.06% increase to close at $14.27 million relative to $9.91 million documented for the prior year. ‘Depreciation and Amortization’ increased 60.10% to $1.28 million (2016: $799,101), while ‘Preference Share Dividend’ declined 8.49% to $926,469 (2016: $1.05 million). Operating expenses for the quarter rose 37% to $5.50 million versus $4.02 million booked for the comparable quarter in 2016.
Consequently, Operating Profit for the period and the quarter rose 12.12% and 58% respectively to $9.12 million (2016: $8.14 million) and $2.55 million (2016: $1.61 million) respectively.
Profit before tax amounted to $9.12 million versus the $8.14 million booked in 2016. Taxation decreased year over year by approximately 4.15% from $1.41 million for the nine month ended December 2016 to $1.36 million. As such, Net Profit amounted to $7.77 million, a 15.55% increase when compared to the $6.72 million in 2016. Proven booked profit for the third quarter of $2.32 million compared to $1.37 million recorded for the comparable period in 2016.
Net profit attributable to shareholders for the nine months amounted to $5.23 million relative to $4.76 million. Profit attributable to shareholders for the quarter totaled $1.48 million versus $820,148 booked in 2016.
Total comprehensive income for the period amounted to $12.77 million compared to $9.31 million for the corresponding period in 2016.
Earnings per share (EPS) for the quarter amounted to $0.0024 cents (2016: $0.0013), while the EPS for the nine months amounted to $0.0084 (2016: $0.0076). The twelve-month trailing EPS amounted to $0.0147. The number of shares used in our calculations is 625,307,963. Notably, the stock price for PROVEN and PROVENJA closed the trading period on February 8, 2018 at JMD $0.23 and $26.00 respectively.
PROVEN indicated “The Board of Directors has approved an interim dividend payment of US$0.0018 per share to all ordinary shareholders on record as February 20, 2018 and be paid on March 6, 2018. This will bring the total dividend for the financial year to date to US$0.0058 per share, representing an annualized tax-free dividend yield of 3.22% based on the average share price of US$0.25 for the period ended December 31, 2017.”
Balance Sheet at a glance:
Total Assets as at December 31, 2017 amounted to $600.85 million (2016: $357.97 million), an increase of 68%. The growth resulted from a $121.35 million increase in ‘Available for Sale Investments’ to total $397.77 million (2016: $276.42 million) and a $106.62 million improvement in Cash and Cash Equivalents to total $114.16 million (2016: $7.54 million).
Shareholders’ Equity totaled $90.07 million relative to $66.92 million in 2016; as such book value per share now amounts to $0.14 (2016: $0.11). The number of shares used in the calculations is 625,307,963 units.
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