May 21, 2024
VM Investments Limited (VMIL) for the year ended December 31, 2023, reported an 8% increase in Interest Income totaling $1.51 billion compared to $1.40 billion in the corresponding period last year. Interest Income for the fourth quarter had a 49% decline to close at $190.79 million compared to $373.08 million for the comparable quarter of 2022.
Interest Expense amounted to $1.65 billion (2022: $1.16 billion), this represents an increase of 42% year over year. Consequently, net interest income decreased by 81% to $47.82 million compared to $253.04 million for the year ended December 31, 2022. The company booked a net interest loss of $54.85 million for the fourth quarter versus an income of $65.60 million reported for the similar quarter of 2022.
Gains from investment activities decreased by 8% to close at $866.34 million (2022: $946.53 million), while Net fees and commissions declined by 7% from $1.01 billion in 2022 to $944.93 million in the period under review. As a result, other operating revenue for the year amounted to $1.83 billion, a 12% decrease relative to $2.08 billion reported in 2022. The Company noted, “Net Fees and Commissions were negatively impacted by lower activity in the capital market sector and reduced investor confidence.”
Net interest income and other operating revenue for the year amounted to $1.88 billion, a 19% reduction relative to $2.34 billion reported in 2022. Net interest income and other operating revenue for the fourth quarter amounted to $514.91 million (2022: $809.99 million). Operating profit totalled $8.89 million, a 99% decrease from the corresponding period last year. (2022: $936.28 million).
For the year, Share of Associates’ Profit of $164.41 million was recorded which reflected positive results from Kingston Properties Limited (KPREIT).
Profit before taxation for the year amounted to $173.30 million, an 81% decrease relative to $936.28 million reported in 2022. Loss before taxation for the fourth quarter amounted to $69.60 million (2022: Profit of $474.60 million).
Taxation credit for the year was $25.55 million (2022: Taxation charge of $219.69 million). Net Profit for the year end amounted to $198.84 million, a 72% decrease from the $716.59 million reported in 2022. For the fourth quarter, Net Profit was $8.36 million (2022: $375.85 million).
Consequently, Earnings Per Share for the year end amounted to $0.13 (2022: EPS: $0.48), while Earnings Per Share for the quarter totaled $0.01 (2022: EPS: $0.25).
Notably, VMIL’s stock price closed the trading period on May 21, 2024, at a price of $2.75.
Balance Sheet Highlights
The company’s assets totalled $29.51 billion (2022: $28.94 billion). This resulted in a 109% jump in ‘resale agreements’ closing at $1.57 billion.
Shareholder’s equity was $2.50 billion (2022: $2.44 billion), representing a book value per share of $1.67 (2022: $1.63).
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