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).