November 13, 2026

VM Investments Limited (VMIL)
Unaudited Financials for the Nine Months Ended September 30, 2026

VM Investments Limited (VMIL), for the nine months ended September 30, 2026, reported a consolidated net profit of $264.9 million, a significant increase from the $18.1 million reported in the corresponding period of 2025.

Net interest income and other operating revenue increased by $489.7 million, or 27.2%, over the corresponding prior-year period, to close at approximately $2.29 billion. The increase came mainly from gains from investment activities, which rose $855.2 million, or 115.1%, to $1.60 billion (2025: $743.0 million). Management attributed this to favourable market conditions and effective portfolio positioning. These gains more than offset declines in both net fees and commissions and net interest income. Interest income rose 14.7% to $1.51 billion on growth in earning assets and higher yields. However, interest expense climbed 32.5% to $1.49 billion amid the persistently elevated interest rate environment and higher funding costs. As a result, net interest income fell to approximately $14.3 million (2025: $186.6 million). For the third quarter, net interest income was negative $10.8 million (Q3 2025: $31.6 million).

Fees and commission income declined 23.0% to $631.1 million (2025: $819.8 million). The decrease was mainly due to lower transaction-driven activity and softer business volumes, compared with an exceptional performance in the previous period. On a sequential basis, fees and commission income declined by $5.9 million, or 3.0%, to $188.8 million compared with the second quarter of 2026. Management expects the reduction to be temporary and expects future growth in fee income to come from its strategic initiatives. Dividend income amounted to $19.2 million (2025: $41.1 million), and lease income contributed $11.7 million.

Total operating expenses increased by $108.4 million, or 5.7%, year over year, to approximately $1.99 billion. Staff costs rose 11.7% to $1.04 billion (2025: $930.4 million), reflecting annual salary adjustments, inflationary pressures and strategic investments in human capital. Impairment on financial assets increased $90.6 million, or 66.9%, to $226.3 million (2025: $135.6 million), which management attributed to a more conservative provisioning posture. Other operating costs declined 11.2% to $727.4 million (2025: $818.8 million), partly offsetting these increases and reflecting the Company’s continued cost-containment and operational efficiency initiatives.

As a result, net operating income amounted to $295.3 million, compared with a net operating loss of $86.1 million for the prior-year period. Share of profit in associates more than doubled to $73.4 million (2025: $31.0 million), resulting in a profit before income tax of $368.6 million versus a loss of $55.1 million in 2025. After an income tax charge of $103.7 million (2025: credit of $73.1 million), the Company reported a net profit of $264.9 million for the nine months ended September 30, 2026. For the third quarter, net profit amounted to $159.1 million (Q3 2025: $57.3 million), the strongest quarter of the year. This was driven by investment gains of $645.5 million, compared with $181.8 million in the prior-year quarter.

Total comprehensive income, however, amounted to a loss of $651.9 million (2025: income of $160.9 million). This reflected $806.1 million in fair value losses on investment securities and $110.7 million in losses on FVOCI equity investments, both recognised in other comprehensive income.

Earnings Per Share for the nine months amounted to $0.18 (2025: EPS $0.01), while Earnings Per Share for the third quarter totalled $0.11 (2025: EPS: $0.04). The twelve-month trailing EPS was $0.28, and the number of shares used in this calculation was 1,500,025,000.

Notably, VMIL’s stock price closed the trading period on November 12, 2026, at a price of $2.40, with a corresponding P/E ratio of 8.72x.

Balance Sheet Highlights

Total assets as at September 30, 2026, increased by 33.3%, or $11.7 billion, from the $35.1 billion reported at December 31, 2025, to close at $46.7 billion. The increase was mainly due to a 50.5%, or $12.5 billion, increase in investment securities to $37.2 billion. Higher cash resources and investment property of $388.8 million also contributed. These were partially offset by declines in loans receivable to $1.78 billion (December 2025: $3.04 billion) and resale agreements to $956.4 million (December 2025: $1.69 billion).

Total liabilities increased by $12.6 billion to $43.0 billion. The increase was largely due to a 52.0% rise in repurchase agreements to $31.6 billion, together with higher customer accounts payable of $2.76 billion (December 2025: $1.45 billion). Borrowings increased to $7.58 billion (December 2025: $7.01 billion). During the quarter, the Company successfully closed its $4.8 billion public bond offer, with all applicants receiving their full allotment, which extended its debt maturity profile.

Stockholders’ equity attributable to the Company was $2.17 billion (September 2025: $3.13 billion), representing a book value per share of $1.45 (2025: $2.09). The decline reflects the continued negative impact of bond market conditions on the investment revaluation reserve, which widened to a deficit of $1.70 billion (December 2025: $780.6 million deficit).