August 03, 2021
Victoria Mutual Investments Limited (VMIL), for the six months ended June 30, 2021, reported total interest income of $532.02 million, an increase of 15% relative to the $461.86 million recorded for the corresponding period in 2020. Interest income for the quarter amounted to $274.90 million, up 25% on the $219.99 million reported for the corresponding period in 2020.
Interest expense for the period amounted to $341.45 million, a 6% increase relative to the $322.30 million recorded in 2020. As such, net interest income closed the period at $190.57 million, a 37% increase from $139.56 million recorded for the corresponding period in 2020. Net interest income for the quarter amounted to $110.37 million versus $59.71 million booked for the second quarter of 2020.
VMIL recorded gains from investment activities for the period of $416.40 million, a 246% increase relative to the gain of $120.21 million recorded in 2020.
Net fees and commissions closed the period at $305.75 million, a decrease of 36% compared with the $474.17 million recorded for the comparable period in 2020.
Other income for the six months reflected a total of $69.53 million, relative to other loss of $15.78 million recorded for last year.
VMIL noted, this performance was predominantly “driven by the following:
Our Treasury Management strategies continue to generate robust growth, with a 36% growth in Net Interest Income.
The improving investment climate contributed to a significant growth in gains from investment activities which increased by $296.19 million or 246.39% when compared with the same period in 2020. These activities generated revenues of $344.80 million for the period.
Our Asset Management Business continues to be resilient with a 20% growth in AUM attributable to new business flows and robust investment management performance. Our VM Wealth Property Portfolio retained its number one position with a return of 5.8%.
Our Capital Markets Unit continues its aggressive business development activities securing new mandates, bolstering our pipeline for an active next six months.”
Other operating income for the period increased 37% to $791.69 million relative to $578.60 million booked for the same period in 2020. Net interest income and other operating revenue closed at $982.26 million versus $718.16 million for the six month ended June 30, 2020. Net interest income and other operating revenue for the quarter totalled $470.48 million, 5% above the $449.78 million reported for the same period in 2020.
Staff cost increased 9% to close the period at $320.78 million (2020: $294.71 million). Other operating expense amounted to $332.64 million (2020: $281.59 million) respectively. Provision for credit gain on financial assets amounted to $40.68 million relative to provision for credit losses on financial assets $35.26 million in 2020.
Operating Profit closed the period under review at $369.52 million (2020: $106.60 million), while for the quarter, operating profit amounted to $261.68 million (2020: $186.04 million). Additionally, Share of loss in associate for the six months amounted to $19 million (2020: $16.16 million), while for the quarter share of loss amounted to $10.44 million (2020: $7.04 million).
Profit before taxation amounted to $350.52 million for the period, a 288% increase relative to $90.43 million recorded for the prior financial year. Taxation expense amounted to $85.96 million versus taxation credit of $80.46 million booked in 2020.
Consequently, net profit for the six months totaled $264.57 million, a 55% increase relative to the $170.89 million booked for the same period of 2020. VMIL net profit for the quarter closed at $174.97 million compared to $207.79 million booked in 2020.
Total comprehensive loss for the period amounted to $136.47 million, relative to a loss of $74.19 million booked in 2020. As for the quarter, total comprehensive income amounted to $134.06 million, an 85% decrease when compared to income of $910.37 million recorded for the same quarter last year.
Earnings per share totalled $0.18 (2020: $0.11) for the period under review. EPS for the quarter amounted to $0.12 (2020: $0.14) The twelve-month trailing earnings per share is $0.35. The number of shares used in our calculations 1,500,025,000 units. Notably, VMILs stock price closed the trading period on July 30, 2021 at a price of $6.24 with a corresponding P/E of 17.75 times.
Balance Sheet at a glance:
As at June 30, 2021, The Company’s asset base totaled $28.69 billion, a 22% increase relative to the $23.55 billion booked as at June 30, 2020. The main contributor to the increase in total assets was ‘Investment Securities’ which amounted to $19.10 billion relative to $15.05 billion for the prior year and ‘Resale Agreements’ which amounted to $5.16 billion (2020: $2.88 billion).
Total Stockholders’ Equity as at June 30, 2021 was $4.24 billion (2020: $4.21 billion); resulting in a book value per share of $2.83 (2020: $2.81).
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