November 15, 2024
Sterling Investments Limited (SIL) for the nine months ended September 30, 2024, reported a 11% decrease in Interest Income totaling $96.88 million compared to $109.44 million in the corresponding period last year. Interest Income for the third quarter had a 5% decrease to close at $35.13 million compared to $37.04 million for the comparable quarter of 2023.
Foreign exchange gains amounted to $35.01 million (2023: $34.42 million), this represents an increase of 2% year over year. Consequently, Total revenue increased marginally to $139.70 million compared to $139.66 million for the nine months ended September 30, 2023. The company booked total revenue of $67.55 million for the third quarter versus $38.37 million reported for the similar quarter of 2023.
Interest expenses decreased by 5% to close at $20.74 million (2023: $21.81 million), while Other Operating expenses increased by 39% from $32.81 million in 2023 to $45.60 million in the period under review. As a result, total expenses for the nine months ended September 30, 2024, amounted to $67.93 million, a 12% increase relative to $60.53 million reported in 2023.
Operating Profit totalled $71.77 million a 9% decrease from the corresponding period last year. (2023: $79.13 million). Operating profit for the third quarter amounted to $46.06 million (2023: Operating loss of $4.02 million).
Other Income for the nine months ended September 30, 2024, amounted to $35,209, a 94% increase relative to $18,172 reported in 2023.
No taxes were reported. As such, Net Income for the nine months ended September 30, 2024, had a 9% decrease to reach $71.81 million (2023: $79.15 million). For the third quarter, Net income was $46.10 million (2023: Net loss $4.02 million).
Consequently, Earnings Per Share for the nine months amounted to $0.17 (2023: EPS: $0.18), while Earnings Per Share for the quarter totaled $0.11 (2023: LPS: $0.01). The twelve-month trailing EPS was $0.22, and the number of shares used in these calculations was 433,968,380.
Notably, SIL’s stock price closed the trading period on November 14, 2024, at a price of $2.36 with a corresponding P/E ratio of 10.72x.
Balance Sheet Highlights
The company’s assets totalled $1.92 billion (2023: $1.71 billion). The growth in total assets was primarily driven by a $209.46 million or 13% increase in ‘Investment Securities’ from $1.66 billion in 2023 to $1.87 billion in the period under review.
Shareholder’s equity was $1.51 billion (2023: $1.24 billion), representing a book value per share of $3.48 (2023: $2.85).
DISCLAIMER
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.
