VMIL reports 50% increase in three months net profit

Date: May 15, 2019

Victoria Mutual Investments (VMIL) for the three months ended March 31, 2019 reported total interest income of $201.00 million, an increase of 11% relative to the $180.93 million recorded for the corresponding period in 2018.

Interest expense for the period amounted to $125.82 million, a 10% increase relative to the $114.72 million recorded in 2018. As such, Net interest income closed the period at $75.18 million, a 14% improvement on the $66.20 million recorded for the corresponding period in 2018.

VMIL recorded gains from investment activities for the period of $80.01 million, a 603% climb relative to the gain of $11.38 million recorded in 2018. Management noted, this was attributable to “Strong securities trading gains”

Net fees and commissions closed the period at $281.74 million, an increase of 41% compared with the $199.71 million recorded for the comparable period in 2018, “with corporate advisory fees contributing $191.82 million or 43.79% of total revenue (2018: $142.67 million or 50.01%).”

Other income for the year reflected a total of $1.12 million, a decline of 86% compared to $7.94 million recorded for last year.

The Company noted their first quarter was bolstered by the following:

  • “Strong year over year growth in our Asset Management Unit, a key element of our strategic thrust”
  • “Growth in our corporate finance business which is consistent with our strategic objective of financing the growth of the nation’s productive sector”
  • “Strong securities trading gains of $80.01 million (2018: $11.38 million).”
  • “Income from new business lines and products launched, primarily corporate insurance premium financing, and our two new Unit Trust Portfolios, International Equity and US$ Money Market Portfolios.”

Staff cost and other operating expenses increased 47% and 44% respectively, to close the period at $121.15 million (2018: $82.16 million) and $147.34 million (2018: $102.09 million) respectively. Management noted, “These expenses relate to people development, asset tax and other support services required to grow our business.”

Profit before taxation amounted to $160.69 million for the period, a 59% increase relative to $100.98 million recorded for the prior financial year. Taxation amounted to $42.83 million (2018: $22.28 million).

Consequently, net profit for the year totaled $117.86 million, a 50% or $39.16 million increase relative to the $78.70 million booked for the same period on 2018.

Earnings per share totalled $0.08 (2018: $0.05) for the period. The twelve-month trailing earnings per share is $0.29. The number of shares used in our calculations 1,500,025,000 units. Notably, VMILs stock price closed the trading period on May 15, 2019 at a price of $4.26.

Balance Sheet:

As at March 31, 2019, The Company’s asset base totaled $21.60 billion, up from $19.09 billion at March 31, 2018. The main contributor to the increase in total assets was ‘loan receivables’ which amounted to 769.59 million relative to nil the prior year. ‘Resale Agreements’ however tempered this movement with a 43% decline to $1.74 billion (2018: $3.04 billion)

Total Stockholders’ Equity as at March 31, 2019 was $3.36 billion (2018: $2.52 billion); resulting in a book value per share of $2.24 (2018: $1.68).


Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.