VMIL reports 57% increase in year net profit

May 5, 2023

Interest income increased by 24% to $1.40 billion relative to 2021’s $1.13 billion. Interest income for the quarter amounted to $356.44 million, 10% above the $325.14 million booked for the similar quarter of 2021. Additionally, other interest income for the year was realized at $11.71 million (2021: $9.05 million).

Interest expenses for the year increased by 51% to $1.16 billion (2021: $767.41 million). As a result, net interest income decreased by 31% to $253.04 million compared to $369.21 million in 2021. Net interest income for the quarter amounted to $48.96 million (2021: $100.44 million).

Gain from investment activities totalled $996.77 million for the twelve months relative to the previous year’s $670.16 million.

Dividend income amounted to $33.05 million (2021: $20.87 million) for the year.

Other income increased to close at $17.75 million relative to 2021’s $3.95 million.

Net fees and commissions rose by 28% to $1.01 billion (2021: $791.96 million), resulting in other operating revenue of $2.13 billion (2021: $1.49 billion).

As a result, net interest income and other operating income increased by 29% to $2.39 billion compared to $1.86 billion in 2021.

Staff costs amounted to $764.68 million in contrast to $648.62 million recorded in 2021. The impairment gain booked for the year was $20.59 million, compared to a loss of $4.87 million in 2021.

Other operating expenses for the year amounted to $756.33 million compared to $544.44 million booked in the previous year.

Total operating expenses for the year under review amounted to $1.50 billion (2021: $1.20 billion).

Operating profit for the year under review amounted to $886.78 million (2021: $658.22 million).

Consequently, profit before taxation amounted to $886.78 million relative to a profit of $658.22 million in 2021.

Tax charges for the year amounted to $194.92 million, an 11% decline when compared with the $218.19 million incurred by VMIL for 2021. As a result, the net profit for the year amounted to $691.86 million relative to a profit of $440.03 million, a 57% increase.

Earnings per share (EPS) amounted to $0.46 for the period, relative to earnings per share of $0.29 in 2021. The number of shares used in our calculations is 1,500,025,000. Notably, VMIL last traded on May 4, 2023, at $3.87 with a corresponding P/E of 8.39 times.

VMIL noted the following business highlights:

    • KPREIT now an Associated Company
    • VM Wealthwise Podcast aired its 3rd Season
    • New Features Added to the VM Wealth Online Client Portal
    • Partnered with Several Entrepreneur Incubator Groups
    • Joined the Forestry Department’s Adopt-A-Hillside Programme
    • Co-Brokered West Indies Petroleum Preference Share Refinancing $5.8 billion

Balance Sheet Highlights:

The company, as at December 31, 2022, recorded total assets of $29.15 billion, a decline of 6% when compared to $30.92 billion recorded last year. The decrease was mainly attributed to ‘Resale Agreements’ which closed at $752.15 million relative to $4.05 billion in 2021. The decline was offset by increases in ‘Interest in Associate’ to $1.63 billion (2021: nil) and ‘Loans Receivable’ by 57% to $5.47 billion (2021: $3.48 billion), which was supported by the expansion of the Corporate Lending Solutions and Margin Loan businesses.

Total Stockholders’ Equity as at December 31, 2022, closed at $3.04 billion (2021: $3.63 billion), resulting in a book value per share of $2.02 per share compared to $2.42 in 2021.











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