Proven reports 58% increase in three months net profit attributable to shareholders

Date: August 9, 2018 

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

Proven Investments Limited (PROVEN) for the three months ended June 30, 2018 reported interest income of $7.21 million, a 5% or $333,400 increase when compared with the $6.87 million reported for the same period in 2017.

Interest expense for the period amounted to $1.93 million, an 18% decline when compared to the $2.36 million booked for the comparable period in the prior year. As such, net interest income for the quarter witnessed a 17% increase to total $5.28 million relative to the $4.51 million in the corresponding period of the previous year.

Dividend income amounted to $273,777, 13% above the $241,467 recorded in 2017, while Fees & Commission income declined by 42% to $701,092 relative to $1.21 million in 2017. Net foreign exchange gain amounted to $893,779 relative to a gain of $196,048 million recorded in 2017.

Other income moved from $95,944 to total $129,586 for period a growth of 35%. Proven also booked an increase in pension management income to total $1.20 million, up from $538,798 booked last year for the same time period.

Consequently, net revenue increased by 17% to total $8.52 million compared to $7.25 million recorded for the corresponding period in 2017.

Operating Expenses climbed by 11% for the period to total $5.55 million relative to $4.98 million in 2017. Of this,

  • Administrative and General Expenses recorded a 1% upward movement to close at $4.44 million relative to $4.39 million documented for the prior year.
  • Depreciation and Amortization remained relatively flat at $442,640 (2017: $441,376)
  • Preference Share Dividend increased 79% to $266,322 (2017: $148,431)
  • IFRS 9 provisioning amounted to $408,224 relative to nil the prior year

Consequently, Operating Profit for the quarter rose 30% to $2.96 million (2017: $2.27 million).Profit before tax amounted to $2.96 million versus the $2.27 million booked in 2017. Taxation declined year over year by 61% from $287,184 to $112,581.  As such, Net Profit amounted to $2.85 million, a 44% increase when compared to the $1.99 million in 2017.

Net profit attributable to shareholders amounted to $1.79 million compared to $1.13 million for the corresponding period in 2017.

Earnings per share (EPS) for the quarter amounted to $0.29 cents (2017: $0.18 cents). The trailing twelve months earnings per share amounted to $0.01. 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 August 9, 2018, at US$0.19 and J$26.01 respectively.

Balance Sheet at a glance:

Total Assets as at June 30, 2018 to $575.12 million (2017: $598.73 million), a decline of 4%. This decline resulted from a $19.49 million decrease in Cash and Cash Equivalents to total $93.62 million (2017: $113.10 million) and a $18.67 million decline in Available-for-sale investments to total $385.84 million (2017: $404.51 million).

Shareholders’ Equity totaled $82.08 million relative to $70.91 million in 2017; as such book value per share now amounts to $0.13 (2017: $0.11).



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