August 14, 2024
Sterling Investments Limited (SIL) for the six months ended June 30, 2024, reported a 15% decrease in Interest Income totaling $61.75 million compared to $72.40 million in the corresponding period last year. Interest Income for the second quarter had a 33% decrease to close at $24.33 million compared to $36.43 million for the comparable quarter of 2023.
Foreign exchange gains amounted to $12.23 million (2023: $29.00 million), this represents a decrease of 58% year over year. Consequently, net loss on sale of debt investment securities at FVOCI was $1.83 million compared to a loss of $121,398 for the six months ended June 30, 2023. The company booked net gain on sale of debt investment securities at FVOCI of $2.07 million for the second quarter relative to nil for the similar quarter of 2023.
Total revenue decreased by 29% to close at $72.15 million (2023: $101.29 million). Management noted, “this was primarily the result of lower foreign exchange gains and a one-off decline in interest income.”
Total Expenses increase by 156% from $18.14 million in 2023 to $46.44 million in the period under review. As a result, operating profit for the six months ended June 30, 2024, amounted to $25.71 million, a 69% decrease relative to $83.15 million reported in 2023.
Net Income for the six months showed a 69% decrease to reach $25.71 million (2023: $83.16 million). For the second quarter, net income was $16.51 million (2023: $67.30 million).
Total comprehensive income for the six months amounted to $78.93 million, a 97% increase from the $40.13 million reported in 2023. For the second quarter, Total comprehensive income was $8.58 million (2023: $60.16 million).
Consequently, Earnings Per Share for the six months amounted to $0.06 (2023: EPS: $0.19), while Earnings Per Share for the quarter totaled $0.04 (2023: EPS: $0.16). The twelve-month trailing EPS was $0.11, and the number of shares used in these calculations was 432,279,067.
Notably, SIL’s stock price closed the trading period on August 14, 2024, at a price of $2.40 with a corresponding P/E ratio of 22.80x.
Balance Sheet Highlights
The company’s assets totalled $1.80 billion (2023: $1.78 billion). This resulted from a 1% increase in ‘Investment Securities’ closing at $1.76 billion.
Shareholder’s equity was $1.43 billion (2023: $1.28 billion), representing a book value per share of $3.30 (2023: $2.97).
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