PROVEN reports a 5% decrease in six months profit attributable to shareholders

Reported in US$ (except where it is indicated otherwise)

Proven Investments Limited (PROVEN) for the six months ended September 30, 2017 booked Net Interest  of $4.68 million, up from the $3.40 million documented in 2016. Net Interest Income for six month ended September 30, 2017 totaled $9.20 million, an increase of approximately $2.12 million relative to the prior year’s corresponding period amount of $7.08 million. This as Interest Income totaled $13.77 million, a 9% increase when compared to the $12.60 million recorded in 2016. Interest Expense declined 17% to total $4.57 million (2016: $5.52 million).

Net Foreign Exchange Gains fell by 72% to $528,630 (2016: $1.88 million). Dividend income amounted to $465,653 million, a 36% decrease from the $725,835 recorded in 2016, while Fees & Commission income grew 136% to $2.68 million relative to $1.14 million in 2016. Other income moved from $592,645 to $1.16 million for the year end. Gains on Securities Trading improved 25% to close six months period at $2.47 million compared to $1.98 million booked in 2016. Notably, Proven recorded an increase in Pension Management Income to $1.97 million, up from $1.89 million booked last year. according to PROVEN, “both the increase in Securities Trading gains and Fee and Commission income is the result of solid performance from our main operating subsidiaries, with enhanced focus on improving off-Balance sheet activity and income.”

“Net Revenue” increased by 23% to total to $17.59 million relative to $14.27 million recorded for the corresponding period in 2016. However, for the second quarter quarter, Net Revenue rose 44% to $10.34 million relative to $7.18 million in 2016.

Operating Expenses climbed by 42% for the period to $11.01 million relative to $7.74 million in 2016. According to management this was, “mainly as a result of the inclusion of BOSLIL results in this quarter’s financials.” Of this, Administrative and General Expenses recorded a 53% increase to close at $9.40 million relative to $6.14 million documented for the prior year. ‘Depreciation and Amortization’ increased 33% to $856,639 (2016: $644,107), while ‘Preference Share Dividend’ declined 21% to $757,067 (2016: $963,851). Operating expenses for the quarter rose 59% to $6.03 million versus $3.78 million booked for the comparable quarter in 2016.

Consequently, Operating Profit for the period and the six month rose 1% and 27% respectively to $6.58 million (2016: $6.52 million) and $4.31 million (2016: $3.40 million) respectively.

Profit before amounted to $6.58 million versus a profit of $6.52 million booked in 2016. Taxation decreased year over year by approximately 4% from $1.18 million to $1.13 million.  As such, Net Profit amounted to $5,44 million relative to $5.35 million in 2016. Proven booked second quarter profit of $3.46 million compared to $2.80 recorded for the comparable period in 2016.

Net Profit attributable to shareholders for the six months closed at $3.75 million (2016: $3.94 million), while  profit attributable to shareholders for the quarter amounted to $2.62 million (2016: $1.97 million). The earnings per share (EPS) for the period totaled  0.60 cents (2016: 0.63 cents). The EPS for the quarter amounted to 0.42 cents 2016: 0.32  cents). The trailing twelve months EPS is 1.36 cents

Additionally, Proven’s Total Comprehensive Income for the six months declined to $6.49 million, this compares to $14.57 million recorded in 2016. The Total Comprehensive Income for the second quarter ended September 30, 2017 amounted to $3.49 million (2016: $7.02 million).


Balance Sheet at a glance:

Total Assets as at September 30, 2017 amounted to $604.50 million (2016: $360.54 million), an increase of 68%. The growth resulted from a $121.23 million increase in ‘Available for Sale Investments’ to $403.12 million (2016: $281.89 million) and a $89.38 million improvement in Cash and Cash Equivalents to $100.96 million (2016: $11.58 million).

Shareholders’ Equity totaled $90.10 million relative to $70.77 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 625,3007,963 units.



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