November 13, 2019

Victoria Mutual Investments Limited (VMIL), for the nine months ending September 30, 2019 reported total interest income of $615.37 million, an increase of 18% relative to the $523.24 million recorded for the corresponding period in 2018. Interest income for the quarter improved 26% to $216.96 million relative to 172. 17 million.

Interest expense for the period amounted to $402.31 million, an 18% increase relative to the $340.97 million recorded in 2018.

As such, net interest income closed the period at $213.06 million, a 17% increase relative to the $182.28 million recorded for the corresponding period in 2018. Net interest income for the quarter totaled $72.71 million, a 16% increase on the $62.61 million booked in 2018’s corresponding quarter.

VMIL recorded gains from investment activities for the period of $421.29 million, a 163% increase relative to the gain of $160.14 recorded in 2018.

Net fees and commissions closed the period at $673.60 million, an increase of 16% compared with the $579.93 million recorded for the comparable period in 2018.

Other income for the period reflected a total of $56.25 million, a surge compared to $690,000 recorded for last year.

Consolidated revenues amounted to $1.36 billion (2018: $923.03 million) for the nine months ended September 30, 2019. According to VMIL, “This significant 47.80% growth in revenue was driven by net fees and commissions and gains on investment activities, which increased by $93.68 million and $261.16 million, respectively.”

Staff cost and other operating expenses increased 47% and 41% respectively, to close the period at $362.39 million (2018: $246.55 million) and $326.28 million (2018: $231.22 million) respectively.

Notably, VMIL also booked ‘Provision for credit losses on financial assets’ of $20.31 million relative to $118.74  million for 2018.

Profit before taxation amounted to $655.23 million for the period, a 101% increase relative to $326.53 million recorded for the prior period. Taxation amounted to $157.84 million (2018: $85.54 million).

Consequently, net profit for the nine months amounted to $497.39 million, a 106% million increase relative to the $241.00 million booked for the same period in 2018. Net profit for the quarter totaled $244.61 million, a 69% increase on the $144.74 million recorded for 2018’s prior quarter.

Earnings per share for the period totalled $0.33 (2018: $0.16), while earnings per share for the quarter amounted to $0.16 (2018: $0.10). The twelve month trailing earnings per share is $0.44.The number of shares used in our calculations 1,500,025,000 units. Notably, VMILs stock price closed the trading period on November 13, 2019 at a price of $7.63.

VMIL noted, “During the third quarter, VMIL (The Company), acquired a 30% stake in the Barbados-based FinTech company, Carilend Caribbean Holdings Limited (“Carilend”) at a cost of $106.03 million. The purchase price allocation and any likely adjustment for goodwill is still in progress and will be completed by December 31, 2019. The principal activity of Carilend is to operate a Peer to Peer lending platform which efficiently matches borrowers with lenders.”

Balance Sheet:

As at September 30, 2019, The Company’s asset base totaled $24.39 billion, up from $19.69 billion at September 30, 2019. The main contributor to the increase in total assets was ‘Investment Securities’ which amounted to $16.29 billion relative to $13.15 million and ‘Account Receivables for Customer’ which totaled $1.27 million (2018: $899.99 million) for the 2018 period.

Total Stockholders’ Equity as at September 30, 2018 was $4.41 billion (2017: $2.72 billion); resulting in a book value per share of $2.94 (2018: $1.81).

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