VMIL reports 30% increase in year net profit

March 3, 2022

Interest income increased by 22% to $1.15 billion relative to 2020’s $939.26 million. Interest income for the quarter amounted to $346.38 million, 68% above the $205.81 million booked for the similar quarter of 2020. Additionally, other interest income for the year was realized at $9.05 million (2020: $3.36 million).

Interest expense for the year increased by 18% to $767.41 million (2020: $652.99 million). As a result, net interest income increased by 35% to $390.46 million compared to $289.62 million in 2020. Net interest income for the quarter amounted to $121.68 million (2020: $37.50 million).

Gain from investment activities totalled $776.15 million for the twelve months relative to the previous year’s $593.99 million.

Dividend income amounted to $20.87 million (2020: $2.42 million) for the year.

Other income decreased to close at $3.95 million relative to 2020’s $19.01 million.

Net fees and commissions decreased by 10% to $832.09 million (2020: $925.32 million), resulting in other operating revenue of $1.63 billion (2020: $1.59 billion).

As a result, net interest income and other operating income increased by 8% to $2.02 billion compared to $1.88 billion in 2020.

Staff costs amounted to $648.62 million in contrast to $587.49 recorded in 2020. The impairment loss booked for the year was $4.87 million, compared to a gain of $119.32 million in 2020.

Other operating expenses for the year amounted to $544.44 million compared to $533.91 million booked in the previous year.

Total operating expenses for the year under review amounted to $1.20 billion (2020: $1.24 billion).

Total operating profit for the year under review amounted to $825.60 million (2020: $634.88 million).

Share of loss in associate closed at $33.24 million relative to $36 million in 2020.

Consequently, profit before taxation amounted to $792.36 million relative to a profit of $598.87 million in 2020.

Tax charges for the year amounted to $228.22 million, a 38% increase when compared with the $165.28 million incurred by VMIL for 2020. As a result, the net profit for the year amounted to $564.14 million relative to a profit of $433.59 million, a 30% increase. Net loss for the quarter amounted to $48.19 million compared to a profit of $71.76 million for 2020.

Earnings per share (EPS) amounted to $0.38 for the period, relative to earnings per share of $0.29 in 2020. LPS for the quarter amounted to $0.03 versus an EPS of $0.05 for the corresponding quarter of 2020. The number of shares used in our calculations is 1,500,025,000. Notably, VMIL stock price close the trading period on March 01, 2022, at $7.00 with a corresponding P/E of 18.61 times.

According to VMIL, “during 2021, we accelerated the execution of our strategy and our business achieved the following milestones:

    • Launched VM Wealth IPO platform which is an online self-service portal that allows users to add their existing Jamaica Central Securities Depository (JCSD) account information and conveniently participate in IPO/APO’s.
    • Executed on regional expansion with the confirmed agreement to acquire Republic Funds Barbados Incorporation, the owner and operator of the Republic Bank Barbados family of Mutual Funds, comprising Republic Property Fund, Republic Income Fund and Republic Capital Growth Fund.
    • Launched new and upgraded systems in the areas of reporting, client management and information security. • Unit Trust Portfolios, Classic Property and Goal Maximizer, both ended the year in the top two of their asset classes.
    • Achieved significant improvement in our Net Promoter Score (NPS), attributable to our efforts at improving customer experience.
    • The VM Group has achieved its strategic goal of Employer of Choice by securing the Great Place to Work™ certification.
    • Raised capital of $2.9B for VMIL.
    • Reported good performances in our Key Performance Indicators (KPIs).”

Balance Sheet Highlights:

The company, as at December 31, 2021, recorded total assets of $31.24 billion, an increase of 5% when compared to $29.72 billion recorded last year. The increase was mainly attributed to Investments Securities which closed at $20.67 billion relative to $16.53 billion in 2020. The increase was offset by a decline in Resale Agreements by 45% to $4.05 billion (2020: $7.38 billion).

Total Stockholders’ Equity as at December 31, 2021, closed at $4 billion (2020: $4.33 billion), resulting in a book value per share of $2.67 per share compared to $2.89 in 2020.


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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.