August 2, 2022
In Q2 of FY22, Victoria Mutual Investments (VMIL) reported Interest Income of $363.88 million, a 32% increase relative to the $274.90 million recorded for the corresponding period in 2021. Interest Income for the six months amounted to $699.14 million, a 31% increase relative to the $532.02 million recorded in 2021.
During the quarter VMIL earned Net Interest Income of $66.69 million when compared to the $110.37 million reported twelve months earlier. While for the period Net Interest Income amounted to $146.46 million after Interest Expense of $552.69 million (2021: $341.45 million).
During the quarter Other Operating Revenue comprising of gains from investment activities, dividend income, gains from margin loans, fees & commission increased by 75% to $629.06 million (2021: $360.10 million). For the six month period Other Operating Revenue totalled $932.49 million (2021: $791.69 million).
Gains from Investment Activities closed at $328.28 million, 21% less when compared against the $416.40 million reported for June 30, 2021. For the quarter, gains from Investment Activities closed at $254.93 million, 21% higher when compared against Q2 of 2021 when the firm reporting gains of $ 210.93 million.
Net Fees and Commissions grew by 86% to $568.87 million (2021: $305.75 million), while Net Fees and Commissions for the quarter grew by 157% to $353.87 million (2021: $137.54 million).
For the six month period ‘Other Income’ reported was $35.33 million (2021: $69.53 million) while ‘Other Income’ during the quarter ended at $20.26 million (2021: $11.64 million). Notably VMIL reported no earnings from dividend income or margin loans for the six months ended June 30, 2022.
Staff Costs and Other Operating Expenses increased 16% and 14% respectively. Closing the six month period at $372.14 million (2021: $320.78 million) and the quarter at $380.44 million (2021: $332.64 million) respectively.
VMIL reported an Operating Profit of $343.73 million for the six months ended June 30, 2022, relative to a profit of $369.52 million recorded for the six months ended June 30, 2021.
The investment firm paid income tax of $75.90 million (2021: $85.96 million). Consequently, VMIL posted a Net Profit of $250.71 million, 5% less than the $264.57 million recorded in 2021. During Q2 the company reported income tax of $105.07 million (2021: $76.26 million). VMIL was able to post a Net Profit of $242.45 million, 39% higher than the $174.97 million recorded in Q2 of 2021.
Management stated, “The uptick in Net Profit was a result of a 47.88% increase in Other Operating Revenue, when compared to the comparable quarter in 2021, which was sufficient to offset the 62.80% increase in expenses. Net fees and commissions were the primary drivers of the increase in revenue of 157.28%, attributable to our strong execution of both debt and equity related transactions in the review period.”
Additionally, “Owing to negative changes in the fair value of their Investment Securities, VMIL reported a Total Comprehensive Loss for the six months ended June 30, 2022 of $812.16 million relative to a loss of $136.47 million in 2021.”
Given the firm’s current earnings, VMIL outputs an Earnings per Share of $0.17 (2021: $0.18). For the quarter, EPS amounted to $0.16 (2021: $0.12). On a twelve-month trailing basis, VMIL outputs an EPS is $0.37. The number of shares used in our calculations was 1,500,025,000 units. Notably, VMIL’s stock price closed the trading period on July 29, 2022 at $5.22 with a corresponding P/E of 14.23 times.
Balance Sheet at a Glance:
As at June 30, 2022, The firm’s Total Assets was worth $29.12 billion (2021: $28.69 billion). The main contributors to the increase in total assets was a $2.91 billion increases in ‘Loans Receivable’ which amounted to $4.62 billion relative to the $1.71 billion posted in 2021.
Total Stockholders’ Equity at the end of FY 2022 was $3.24 billion (2021: $4.24 billion); resulting in a book value per share of $2.16 (2021: $2.83). However, Retained Earnings in the quarter grew to $3.02 billion (2021: $2.70 billion).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.