PROVEN Reports a 272% Increase In Year End Net Profit Attributable to Shareholders
Reported in US$ (except where it is indicated otherwise):
Proven Investments Limited (PROVEN) for the year ended March 31, 2017 Net Interest Income of $14.50 million, an increase of approximately $777,000 million relative to the prior year’s amount of $13.73 million. This as Interest Income totaled $24.15 million, a 6% decline when compared to the $25.73 million recorded in 2016. Interest Expense declined by $2.35 million or 20% to total $9.65 million (2016: $12 million). According to Proven, “Spread income was the major contributor to revenue during the year, performing consistently when compared with last year.” Net Interest income for the fourth quarter amounted to $4 million, up from the $3.09 million documented in 2016.
Net Foreign Exchange Gains grew by 27% to $1.90 million (2016: $1.50 million). Dividend income amounted to $1.36 million, a 2% increase from the $1.33 million recorded in 2016, while Fees & Commission income grew 16% to $2.37 million relative to $2.04 million in 2016. Other income moved from $1.55 million to $1.01 million for the year end. Net Fair Value Adjustments and Realized Gains for the year totaled $1.72 million compared to a loss of $1.04 million in the prior year. Notably, Proven recorded an increase in Pension Management Income to $1.97 million, up from $1.89 million booked last year.
“Net Revenue” increased by 18% to total to $24.82 million relative to $21 million recorded for the corresponding period in 2016. However, for the fourth quarter, Net Revenue declined 29% to $4.93 million relative to $6.91 million in 2016.
Operating Expenses climbed by 19% for the year to $20.43 million relative to $17.17 million in 2016. Of this, Staff Costs recorded an 84% increase to close at $8.31 million relative to $4.51 million documented for the prior year. Impairment Reversal on Investments for the year was $921,000, in contrast to an Impairment Loss on Investment of $1.74 million. ‘Depreciation and Amortization’ and ‘Property Expense’ the year declined 29% 33% respectively to $1.34 million (2016: $1.89 million) and $565,000 (2016: $844,000).
Preference Share Dividend and Other Operating expense increased year over year to total $2.18 million (2016: $331,000) and $7.80 million (2016: $6.97 million) respectively. The company noted, “Expense management and consolidation has been a key focus of management and we have achieved success in reducing our efficiency ratio closer to the established target of 50%.”
As such PROVEN’s operating profit for the year amounted to $4.39 million relative to $3.83 million. Notably, the company reported $8.03 million for Gain on Acquisition of Subsidiary compared to nil for the prior year.
As such, Profit before Taxation increased year over year by approximately 163% from $4.72 million to $12.42 million. Following tax charges of $957,000 (2016: $439,000), Net Profit amounted to $11.46 million relative to $4.28 million in 2016. Proven booked fourth quarter profit of $4.74 million compared to $882,000 recorded for the comparable period in 2016.
Net Profit attributable to shareholders closed at $8.72 million (2016: $2.34 million) resulting in earnings per share of 1.58 cents (2016: 0.42 cents). According to Proven, “This represents more than a three-fold increase from the US$2.34 million earned in the prior year, and is primarily as a result of improved operational performance and also the one-off gain from the acquisition of the Bank of St. Lucia International Limited (“BOSLIL”), during the final quarter of the financial year. Excluding this one-off gain and related expenses from the results, the profits of the Group would have increased by 148% year over year.” Profit attributable to shareholders for the fourth quarter amounted to $3.96 million relative to a profit of $211,000 booked for the prior year’s corresponding quarter. The EPS for the quarter amounted to 0.72 cents relative to 0.4 cents in 2016.
Additionally, Proven’s Total Comprehensive Income for the year improved to $18.60 million, this compares to a loss of $6.62 million recorded in 2016
Proven stated, “We continue to monitor the investment arena and strategically adjust our positioning to take advantage of opportunities that fit our risk-reward criteria diversifying our portfolio across fixed income sectors and non-bond sources of income with varied risk exposures to lower volatility, while enhancing our expected risk-adjusted returns.”
Balance Sheet at a glance:
Total Assets as at March 31, 2017 amounted to $632.41 million (2016: $632.41 million), an increase of 82%. The growth resulted from a $130.10 million increase in Investment Securities to $362.26 million (2016: $232.16 million) and a $137.59 million improvement in Cash and Cash Equivalents to $151.31 million (2016: $13.72 million).
Shareholders’ Equity totaled $71.08 million relative to $59.65 million in 2016, as such book value per share now amounts to $0.13 (2016: $0.11). The number of shares used in the calculations is 551,595,777 units.
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.