August 14, 2026

VM Investments Limited (VMIL)

Unaudited financials for the six months ended June 30, 2026

VM Investments Limited (VMIL) for the six months ended June 30, 2026, reported a consolidated net profit of $105.8 million, a significant turnaround from the loss reported in the corresponding period of 2025.

Net interest income and other operating revenue increased by $148.1 million, or 11.5%, over the corresponding prior-year period, to close at approximately $1.44 billion. The improvement was driven primarily by a $391.6 million, or 69.8%, increase in gains from investment activities, which closed at $953 million (2025: $561 million). These gains more than offset declines in both net fees and commissions and net interest income. Net interest income declined to approximately $155 million (2025: $542 million), reflecting the Company’s strategic reallocation of capital toward non-interest-bearing assets amid a subdued investment environment following the economic impact of Hurricane Melissa in late 2025 and ongoing geopolitical tensions in the Middle East.

Fees and commission income were below target, reflecting ongoing industry challenges and geopolitical uncertainties that contributed to delays in the execution of several transactions. On a sequential basis, fees and commission income declined by $52.9 million, or 21.4%, compared with the first quarter of 2026. Management noted that, despite these headwinds, gains from the Company’s investment portfolio helped offset the shortfall, and that the transaction pipeline remains robust.

Total operating expenses declined by $98.7 million, or 7.0%, year over year, to approximately $1.32 billion, driven mainly by a 32.8% reduction in other operating costs to $432 million (2025: $643 million), reflecting the positive impact of cost-containment initiatives implemented across the business. This decline was achieved notwithstanding a $52.6 million, or 37.5%, increase in impairment on financial assets to $193 million (2025: $140 million), driven primarily by expected credit losses resulting from a decline in the market value of collateral securing certain loans.

Consequently, the Company reported a net profit of $105.8 million for the six months ended June 30, 2026, representing strong year-over-year profit growth and a marked improvement from the $39.22 million loss of the prior-year period, supported by higher investment gains and improved return on equity.

Earnings Per Share for the six months amounted to $0.07 (2025: LPS $0.03), while Earnings Per Share for the third quarter totalled $0.02 (2025: LPS: $0.004). The twelve-month trailing EPS was $0.21, and the number of shares used in this calculation was 1,500,025,000.

Notably, VMIL’s stock price closed the trading period on August 13, 2026, at a price of $1.66, with a corresponding P/E ratio of 8.01x.

Balance Sheet Highlights

Total assets as at June 30, 2026, increased by 18.6%, or $6.5 billion, from the $35.1 billion reported at December 31, 2025, to close at $41.6 billion. The increase was attributable to growth in investment securities, cash resources and investment property.

Total liabilities increased by $6.9 billion, largely due to a 22.7% increase in repurchase agreements, together with higher accounts payable and accruals associated with increased transaction activity.

Stockholders’ equity attributable to the Company was $2.69 billion (2025: $3.07 billion), representing a book value per share of $1.79 (2025: $2.05).

VMIL’s capital adequacy of 20.69% remained strong and above the regulatory requirement of 10%, despite the continued negative impact of bond market conditions on the Company’s investment revaluation reserve. During the quarter, the Company was selected as an approved financial institution under the DBJ M5 Business Recovery Programme to support MSME recovery following Hurricane Melissa, and achieved an AA Corporate Governance Index rating of 90.44 on the JSE — top-performing and above the market average. VMIL also advanced the repositioning of its earnings model toward recurring fee-based income across wealth management and alternative investments, a strategy outlined at its June Annual General Meeting and designed to enhance earnings resilience and reduce exposure to market volatility.