VMIL reports 106% growth in nine months net profits

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).

 

 

Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. 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.

 

 

 

 

2019-11-13T23:11:40-05:00