May 16, 2022
In Q1 of FY22, Victoria Mutual Investments (VMIL) reported Total Interest Income of $334.57 million, a 30% increase relative to the $256.68 million recorded for the corresponding period in 2021. Interest Expense for the three months amounted to $254.80 million, a 44% increase relative to the $176.53 million recorded in 2021.
VMIL earned Net Interest Income of $79.77 million vs $80.15 million reported twelve months earlier.
‘Other Operating Revenue’ comprising of gains from investment activities, dividend income, gains from margin loans, fees & commission fell by 25% to $303.43 million (2021: $ 402.30 million).
Gains from Investment Activities closed at $72.66 million, 64% lower when compared against Q1 of 2021 when the firm reporting gains of $ 199.39 million.
Net Fees and Commissions grew by 34% to $216.42 million (2021: $161.41 million).
‘Other Income’ reported was $14.34 million (Q1 2021: $41.50 million) while VMIL reported no earnings from dividend income or margin loans in Q1 of FY22.
Staff Costs and other operating expenses increased 4% and 13% respectively. Closing Q1 at $168.46 million (2021: $162.36 million) and $214.89 million (2021: $189.82 million).
Given the disproportionate growth in expenses to income, VMIL reported an Operating Loss of $12.08 million for the three months ended March 31, 2022, relative to a profit of $107.85 million recorded in Q1 FY2021.
The investment firm received a tax credit of $29.16 million (2021: Tax charge of $9.69 million). Because of that credit, VMIL was able to post a Net Profit of $8.26 million. This is 91% lower than the $89.59 million recorded in Q1 of 2021.
Owing to negative changes in the fair value of their Investment Securities, VMIL reported a Total Comprehensive Loss for the three months ended March 31, 2022 of $348.69 million relative to a loss of $270.53 million in 2021.
Given the firm’s current earnings, VMIL outputs an Earnings per Share of $0.01 (2021: $0.06). On a twelve-month trailing basis, VMIL outputs an EPS is $0.32. The number of shares used in our calculations was 1,500,025,000 units. Notably, VMIL’s stock price closed the trading period on May 13, 2022 at $6.00 with a corresponding P/E of 18.64 times.
Balance Sheet at a Glance:
As at March 31, 2022, The firm’s Total Assets was worth $30.22 billion (Q1 2021: $27.53 billion). The main contributors to the increase in total assets was a $2.67 billion increases in ‘Loans Receivable’ which amounted to $4.37 billion relative to $1.70 billion in 2021. ‘Investment Securities’ also contributed to the growth in total assets, closing at $20.55 billion (2021: $19.01 billion).
Total Stockholders’ Equity at the end of Q1 FY 2022 was $3.70 billion (2021: $4.11 billion); resulting in a book value per share of $2.47 (2021: $2.74). However, Retained Earnings in the quarter grew to $2.78 billion (2021: $2.53 billion).
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