November 14, 2023
Sterling Investments Limited (SIL) for the nine months ended September 30, 2023, reported a 2% decrease in interest income totalling $109.44 million compared to $111.96 million in the corresponding period last year. Interest income for the third quarter had a 3% increase to close at $37.04 million compared to $35.98 million for the comparable quarter of 2022.
Foreign exchange gains amounted to $34.42 million versus losses totalling $20.46 million for the corresponding period in 2022. Net loss on sale of debt investment securities at FVOCI was $4.21 million compared to net gains of $6.05 million for the nine months ended September 30, 2022. The company booked net loss on sale of debt investment securities at FVOCI of $4.09 million for the third quarter (2022: nil).
Total revenue increased by 44% to close at $139.66 million (2022: $97.03 million), while total expenses decreased 14% from $70.10 million in 2022 to $60.53 million in the period under review. As a result, operating profit for the nine months ended September 30, 2023, amounted to $79.13 million, a 194% increase relative to $26.93 million reported in 2022.
Other income for the nine months ended September 30, 2023, amounted to $18,172, a 98% decrease relative to $730,472 reported in 2022. Other income for the third quarter amounted to $4,304 (2022: $19,794). Pre-tax profit for the nine-month period totalled $79.15 million, an 186% increase from the corresponding period last year (2022: $27.66 million).
There was no taxation for the nine months (2022: nil); hence, net income for the nine months ended September 30, 2023, had a 186% increase to reach $79.15 million (2022: $27.66 million). For the third quarter, net loss was $4.01 million (2022: income of $20.51 million).
Total comprehensive income for the nine months amounted to $20.77 million relative to a comprehensive loss of $358.82 million reported in 2022. For the third quarter, total comprehensive loss was $19.36 million (2022: $64.92 million).
Earnings per share (EPS) for the nine months amounted to $0.18 (2022: $0.06), while losses per share for the quarter totalled $0.01 (2022: EPS of $0.05). The twelve-month trailing EPS was $0.22, and the number of shares used in these calculations was 431,824,190.
Notably, SIL’s stock price closed the trading period on November 13, 2023, at a price of $2.58 with a corresponding P/E ratio of 11.83x.
Balance Sheet Highlights:
The company’s total assets increased to $1.71 billion (2022: $1.70 billion), primarily due to accounts receivables, which closed at $48.71 million (2022: $43.43 million), followed by investment securities, which amounted to $1.662 billion (2022: $1.657 million).
Shareholder’s equity was $1.24 billion (2022: $1.17 billion), representing a book value per share of $2.87 (2022: $2.70).
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