August 15, 2023
VM Investments Limited (VMIL) for the six months ended June 30, 2023 reported a 24% increase in Interest Income totaling $852.66 million compared to $688.16 million in the corresponding period last year. Interest Income for the second quarter had a 32% increase to close at $474.65 million compared to $358.30 million for the comparable quarter of 2022.
Interest Expense amounted to $788.77 million (2022: $552.69 million), this represents a increase of 43% year over year. Consequently, net interest income decreased by 53% to $63.89 million compared to $135.47 million for the six months ended June 30, 2022. The company booked net interest loss of $27.74 million for the second quarter versus an income of $61.11 million reported for the similar quarter of 2022.
Gains from investment activities increased by 17% to close at $335.67 million (2022: $287.59 million), while Net fees and commissions decreased by 31% from $567.02 million in 2022 to $391.69 million in the period under review. As a result, other operating revenue for the six months ended June 30, 2023 amounted to $755.35 million, a 19% decrease relative to $930.63 million reported in 2022.
Net interest income and other operating revenue for the six months ended June 30, 2023, amounted to $819.24 million, a 23% decrease relative to $1.07 billion reported in 2022. Net interest income and other operating revenue for the second quarter amounted to $379.72 million (2022: $683.94 million). Operating loss totalled $44.33 million relative to operating profit of $330.90 million booked twelve months earlier.
Loss before taxation for the six months ended June 30, 2023, amounted to $1.57 million relative to a profit of $330.90 million reported in 2022. Loss before taxation for the second quarter amounted to $25.45 million relative to profit before taxation of 344.01 million reported twelve months prior.
Taxation credit for the six months ended June 30, 2023, was $35.59 million (Taxation charge 2022: $76.98 million) . Net Profit for the six months amounted to $34.02 million, an 87% decrease from the $253.92 million reported in 2022. For the second quarter, Net Profit was $14.10 million (2022: $238.07 million).
Earnings per share for the period under review closed at $0.02 (2022: $0.17). For the quarter, EPS amounted to $0.01 (2022: $0.16). The twelve months EPS closed at $0.31.
Notably, VMIL’s stock price closed the trading period on August 14, 2023 at a price of $3.10 with a corresponding P/E ratio of 9.85x.
Balance Sheet Highlights
As at June 30, 2023, The firm’s Total Assets was worth $30.39 billion (2022: $28.81 billion). The main contributors to the increase in total assets was a $1.67 billion increase in ‘Interest in associate’ which amounted to $1.67 billion relative to nil posted in 2022.
Shareholder’s equity was $3.07 billion (2022: $2.86 billion), representing a book value per share of $2.05 (2022: $1.91).
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