July 26, 2024
VM Investments Limited (VMIL) for the six months ended June 30, 2024, reported a 2% increase in interest income totaling $872.00 million compared to $852.66 million in the corresponding period last year. Interest income for the second quarter had a 7% decrease to close at $439.86 million compared to $474.65 million for the comparable quarter of 2023.
Interest expense amounted to $793.39 million (2023: $788.77 million). Consequently, net interest income increased by 23% to $78.61 million compared to $63.89 million for the six months ended June 30, 2023. The company booked net interest income of $47.21 million for the second quarter versus a loss of $27.74 million reported for the similar quarter of 2023.
Gains from investment activities increased by 173% to close at $915.27 million (2023: $335.67 million), while net fees and commissions decreased by 3% from $391.69 million in 2023 to $379.53 million in the period under review.
Net interest income and other operating revenue for the six months amounted to $1.41 billion, a 72% increase relative to $819.24 million reported in 2023. Net interest income and other operating revenue for the second quarter amounted to $497.13 million (2023: $379.72 million).
VMIL highlighted, “Our Lending Solutions team performed creditably, earning in excess of $20.9 million from origination fees. This was supplemented by capital gains from trading activity, by opportunistically seeking to dispose of securities which had surpassed our estimated valuations.”
For the six months, total expenses amounted to $943.50 million, a 9% increase over the prior year’s comparable period.
Operating profit totalled $465.56 million. (2023: operating loss of $44.33 million).
Profit before taxation for the six months amounted to $516.54 million, relative to a loss of $1.57 million reported in 2023. Profit before taxation for the second quarter amounted to $60.30 million (2023: Loss of $25.45 million).
Taxation for the six months had a 52% decrease to reach $17.07 million (2023: $35.59 million).
Net Profit for the six months amounted to $533.61 million, a 1469% jump from the $34.02 million reported in 2023. For the second quarter, Net Profit was $23.40 million (2023: $14.10 million).
Consequently, Earnings Per Share for the six months amounted to $0.36 (2023: EPS: $0.02), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.01). The twelve-month trailing EPS was $0.47, and the number of shares used in these calculations was 1,500,025,000.
Notably, VMIL’s stock price closed the trading period on July 25, 2024, at a price of $2.63 with a corresponding P/E ratio of 5.65x.
Balance Sheet Highlights
The company’s assets totalled $29.24 billion (2023: $30.39 billion). The decline resulted from a 66% fall in ‘resale agreements’ closing at $488.33 million.
Shareholder’s equity was $4.42 billion (2023: $3.07 billion), representing a book value per share of $2.95 (2023: $2.05).
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