February 17, 2025
VM Investments Limited(VMIL)
Unaudited financials for the twelve months ended December 31, 2024:
VM Investments Limited (VMIL) for the twelve months ended December 31, 2024, reported a 1% increase in interest income totaling $1.72 billion compared to $1.69 billion in the corresponding period last year. Interest income for the fourth quarter experienced a 14% increase to close at $426.55 million compared to $375.74 million for the comparable quarter of 2023.
Interest expense amounted to $1.61 billion (2023: 1.65 billion); this represents a decrease of 2% year over year. Consequently, net interest income increased by 125% to $107.43 million compared to $47.82 million for the twelve months ended December 31, 2023. The company booked a net interest loss of $10.67 million for the fourth quarter versus a net interest loss of $54.71 million reported for the similar quarter of 2023.
Gains from investment activities increased by 64% to close at $1.42 billion (2023: $866.34 million), while net fees and commissions decreased by 3% from $944.93 million in 2023 to $918.38 million in the period under review. As a result, other operating revenue for the twelve months ended December 31, 2024, amounted to $2.40 billion, a 31% increase relative to $1.83 billion reported in 2023. Net interest income and other operating revenue for the twelve months ended December 31, 2024, amounted to $2.51 billion, a 33% increase relative to $1.88 billion reported in 2023. Net interest income and other operating revenue for the fourth quarter amounted to 497.03 million (2023: $501.75 million).
Staff costs for the twelve months ended December 31, 2024, amounted to $1.11 billion, a 21% increase relative to $912.57 million reported in 2023. Impairment charges on financial assets decreased by 25% for the twelve months ended December 31, 2024, to reach $113.24 million ($150.38 million). Other operating costs amounted to $1.06 billion (2023: $810.70 million) for the period under review.
Operating profit totaled $222.47 million versus $8.89 million reported for 2023. For the fourth quarter, operating loss totaled $358.13 million, relative to the operating loss of $179.45 million reported in the previous year. Share of profit in associates amounted to $176.46 million, a 7% increase relative to $164.41 million reported in 2023.
Profit before taxation for the twelve months ended December 31, 2024, amounted to $398.93 million, a 130% increase relative to $173.30 million reported in 2023. Loss before taxation for the fourth quarter amounted to $260.02 million (2023: loss before taxation of $69.60 million).
The tax credit for the year was $133.32 million relative to $25.55 million booked last year . Net profit for the twelve months amounted to $532.24 million, a 168% increase from the $198.84 million reported in 2023. For the fourth quarter, net loss was $114.97 million versus a net profit of $8.36 million.
Consequently, earnings per share for the year amounted to $0.35 (2023: EPS: $0.13), while the loss per share for the quarter totaled $0.08 (2023: EPS: $0.01). The number of shares used in these calculations was 1,500,025,000.
Notably, VMIL’s stock price closed the trading period on February 14, 2025, at a price of $2.36 with a corresponding P/E ratio of 6.65x.
Balance Sheet Highlights
The company’s assets totaled $30.39 billion (2023: $29.51 billion). The movement in total assets was primarily driven by a 6% increase in ‘Investment securities’ amounting to $19.34 billion (2023: $18.28 billion) and a 74% increase in ‘Cash and cash equivalents’ amounting to $1.53 billion (2023: $877.66 million). Conversely, loans receivable decreased by 11% amounting to $4.14 billion (2023: $4.65 billion), and resale agreements decreased by 45%, amounting to $860.86 million (2023: $1.57 billion).
Shareholders’ equity was $2.91 billion (2023: $2.50 billion), representing a book value per share of $1.94 (2023: $1.67).
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.
