July 30, 2019

Victoria Mutual Investments Limited (VMIL), for the six months ending June 30, 2019, reported total interest income of $398.40 million, an increase of 13% relative to the $353.66 million recorded for the corresponding period in 2018. Interest income for the quarter amounted to $197.41 million, up 14% on the $172.74 million reported for the corresponding period in 2018.

Interest expense for the period amounted to $258.05 million, a 10% increase relative to the $234 million recorded in 2018. As such, Net interest income closed the period at $140.35 million, a 17% improvement on the $119.67 million recorded for the corresponding period in 2018. Net interest income for the quarter amounted to $65.17 million versus $53.47 million booked for the second quarter of 2018.

VMIL recorded gains from investment activities for the period of $167.28 million, a 110% climb relative to the gain of $79.56 million recorded in 2018.

Net fees and commissions closed the period at $489.51 million, an increase of 32% compared with the $370.14 million recorded for the comparable period in 2018.

Other income for the six months reflected a total of $29.80 million, a surge of 336% compared to $6.84 million recorded for last year.

The Company noted their first half was bolstered by, “all business lines which recorded encouraging growth”

• • “On Balance Sheet Assets increased by 14.12%.”
  • “Our Asset Management Portfolios grew by 15.85%, with our flagship JMD Equity Portfolio recording enviable market-leading gains of 46.28% over the past 12 months.”
  • “Increase in fee income from our Equity Brokerage Unit of 251.33% compared with the same period in 2018. This is attributable to our increased market share in the robust local equity trading market.”
  • “Our Bond Trading desk capitalising on the favourable market conditions which existed for the first half of 2019, resulting in income growth of 257.79%.”
  • “Continued market penetration of our Capital Markets Unit in securing new mandates from small, medium and large companies for corporate financing.”

Other operating income for the period increased 50% to $686.59 million relative to $456.54 million booked for the same period in 2018. Net interest income and other operating revenue closed at $826.94 million versus $576.21 million for the six month ended June 30, 2018. Net interest income and other operating revenue for the quarter totaled $397.67 million, 40% above the $283.98 million reported for the same period in 2018.

Staff cost and other operating expenses increased 57% and 39% respectively, to close the period at $245.26 million (2018: $156.64 million) and $240.72 million (2018: $173.48 million) respectively. Management noted, “These expenses relate to staff development, asset tax and support services required to grow our business.” Provision for credit losses on financial assets declined 86% year over year to close at $16.44 million (2018: $114.51 million).

Profit before taxation amounted to $324.51 million for the period, a 147% increase relative to $131.58 million recorded for the prior financial year. Taxation amounted to $71.73 million (2018: $35.33 million).

Consequently, net profit for the six months totaled $252.78 million, a 163% or $156.52 million increase relative to the $96.26 million booked for the same period of 2018. VMIL net profit for the quarter closed at $135.03 million compared to $17.56 million in 2018.

Earnings per share totalled $0.17 (2018: $0.06) for the period. EPS for the quarter amounted to $0.09 (2018: $0.01) The twelve-month trailing earnings per share is $0.37. The number of shares used in our calculations 1,500,025,000 units. Notably, VMILs stock price closed the trading period on July 30, 2019 at a price of $5.74.

Balance Sheet:

As at June 30, 2019, The Company’s asset base totaled $24.66 billion, up from $18.90 billion as at June 30, 2018. The main contributor to the increase in total assets was ‘Investment Securities’ which amounted to $17.24 billion relative to $14.01 billion for the prior year. ‘Cash and Cash Equivalents’ also contributed to this movement with a 304% increase to $2.34 billion (2018: $579 million).

Total Stockholders’ Equity as at June 30, 2019 was $4.04 billion (2018: $2.49 billion); resulting in a book value per share of $2.73 (2018: $1.66).

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