SIL reports 9% decline in nine months net profit

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).

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2024-11-15T13:39:20-05:00