November 14, 2024
VM Investments Limited (VMIL) for the nine months ended September 30, 2024, reported a 2% decrease in Interest Income totaling $1.29 billion compared to $1.32 billion in the corresponding period last year. Interest Income for the third quarter had a 10% decrease to close at $420.77 million compared to $466.61 million for the comparable quarter of 2023.
Interest Expense amounted to $1.17 billion (2023: $1.22 billion), this represents a decrease of 3% year over year. Consequently, net interest income increased by 15% to $118.10 million compared to $102.68 million for the nine months ended September 30, 2023. The company booked net interest income of $39.49 million for the third quarter versus $38.79 million reported for the similar quarter of 2023.
Gains from investment activities increased by 88% to close at $1.12 billion (2023: $592.80 million), while Net fees and commissions increased by 18% from $613.48 million in 2023 to $724.37 million in the period under review. As a result, other operating revenue for the nine months ended September 30, 2024, amounted to $1.89 billion, a 50% increase relative to $1.26 billion reported in 2023.
Net interest income and other operating revenue for the nine months ended September 30, 2024, amounted to $2.01 billion, a 47% increase relative to $1.37 billion reported in 2023. Net interest income and other operating revenue for the third quarter amounted to $600.28 million (2023: $548.39 million).
Staff costs increased by 27% to close at $843.80 million, while other operating expenses increased by 27% from $565.95 million in 2023 to $710.32 million in the period under review. Consequently, Operating profit amounted to $580.60 million a 208% increase from the corresponding period last year. (2023: $188.34 million).
After a 44% increase in profits in associate to $78.35 million (2023: $54.55 million), Profit before taxation for the nine months ended September 30, 2024, amounted to $658.95 million, a 171% increase relative to $242.89 million reported in 2023. Profit before taxation for the third quarter amounted to $142.42 million (2023: $244.47 million).
Taxation for the nine months ended September 30, 2024, had a 78% decrease to reach $11.74 million (2023: $52.40 million). As such, Net Profit for the nine months amounted to $647.21 million, a 240% increase from the $190.49 million reported in 2023. For the third quarter, Net Profit was $113.61 million (2023: $156.47 million).
Consequently, Earnings Per Share for the nine months amounted to $0.43 (2023: EPS: $0.13), while Earnings Per Share for the quarter totaled $0.08 (2023: EPS: $0.10). The twelve-month trailing EPS was $0.44 and the number of shares used in these calculations was 1,500,025,000.
Notably, VMIL’s stock price closed the trading period on November 13, 2024, at a price of $2.45 with a corresponding P/E ratio of 5.61x.
Balance Sheet Highlights
The company’s assets totalled $30.03 billion (2023: $28.36 billion). The growth in total assets was mainly due to ‘Investment securities’ growing by $2.12 billion or 12% to close at $19.92 billion (2023: $17.80 billion). However, ‘Loans receivable’ declined by $828.06 million or 16% from $5.22 billion in 2023 to $4.39 billion, partially offsetting the uptick in total assets.
Shareholder’s equity was $3.14 billion (2023: $2.65 billion), representing a book value per share of $2.09 (2023: $1.77).
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