VMIL reports 18% increase in first quarter net profit

May 15, 2018 

Victoria Mutual Investments (VMIL) for the three months ended March 31, 2018 reported total interest income of $180.93 million, a decline of 3% relative to the $185.84 million recorded for the corresponding period in 2017.

Interest expense for the period amounted to $114.72 million, a 1% decline relative to the $115.96 million recorded in 2017.

As such, Net interest income closed the period at $66.20 million, a 5% or $3.68 million decline relative to the $69.88 million recorded for the corresponding period in 2017.

VMIL recorded gains from investment activities for the period of $11.38 million, a 73% or $30.69 million fall relative to the gain of $42.07 recorded in 2017.

Net fees and commissions closed the period at $199.71 million, a gross increase of 63% compared with the $122.31 million recorded for the comparable period in 2017. The Company noted this was, “due to the Capital Markets Unit’s success in raising over $6.76 billion for corporate clients in this quarter.”

Other income for the year reflected a total of $7.94million, a significant increase of $6.42 million or 424% surge compared to $1.52 million recorded for last year.

Staff cost and other operating expenses increased 23% and 29% respectively, to close the period at $82.16 million (2017: $66.99 million) and $102.09 million (2017: $79.35 million) respectively.

Profit before taxation amounted to $100.98 million for the period, a 13% or $11.53 increase relative to $89.45 million recorded for the prior financial year. Taxation amounted to $22.28 million (2017: $22.62 million).

Consequently, net profit for the year totaled $78.70 million, an 18% or $11.87 million increase relative to the $66.83 million booked for the same period on 2017.

Earnings per share totalled $0.05 (2017: $0.04) for the period. The twelve month trailing earnings per share is $0.24.The number of shares used in our calculations 1,500,025,000 units. Notably, VMILs stock price closed the trading period on March 31, 2018 at a price of $4.23.

Management noted, “Our efficiency ratio moved from 62.06% for the corresponding prior year quarter to 64.6% for this quarter, due mainly to our investment in human resources as well as systems enhancements to meet the changing needs of our business.”

Balance Sheet:

As at March 31, 2018, The Company’s asset base totaled $19.09 billion, up from $15.87 billion at March 31, 2017. The main contributor to the increase in total assets was ‘Cash and Cash Equivalents’ and ‘Resale Agreements’ which contributed $1.81 billion and $3.04 billion respectively relative to $224.58 million and $2.00 billion for the 2017 year end. VMIL noted, “Which was in line with the Group’s strategy for managing investment portfolios”.

Total Stockholders’ Equity as at March 31, 2018 was $2.52 billion (2017: $1.72 billion); resulting in a book value per share of $1.68 (2017: $1.14).



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