Net Profit At Sterling Investments Limited Grew By 20.5% In 1st Half Of 2018 Fiscal
This was the result of increases in interest income and unrealized Foreign Exchange gains. The company’s assets surpassed J$1.2 billion and during the quarter, the dividend yield briefly hit an all-time high of 8.5%. This exceeds the yield available on many local USD and JMD investments on the market. The intrinsic value of the company’s assets continues to grow and at the end of the June 2018 quarter the stock units had a book value of J$14.84.
Net interest income, SIL’s primary source of income, totaled J$36.9 million for the six-month period ended June 2018. This was 6.0% higher than the amount of J$34.8 million recorded for the corresponding period in 2017. The company has effectively used low cost funding to purchase high yielding assets, thereby returning attractive income and growth to its investors. This is reflected in the company’s robust net interest margin of 88.5%.
Unrealized foreign exchange gains for the six months ended June 2018 totaled J$38.4 million compared to J$2.8 million in June 2017. Profit after taxes for the six months ended June 2018 was J$51.8 million, an increase of 20.5% from J$43.0 million for the period ended June 2017.
Total assets increased by 15.5% from J$1.1 billion as at June 2017 to J$1.2 billion as at June 2018. This was largely attributed to a 17.5% increase in investment securities. This was funded by a combination of an increase in the use of margin as well as inflows from the Dividend Reinvestment Programme (DRIP) and Complementary Share Purchase Programme (CSPP). Sterling Investments Limited recently concluded their CSPP for the June quarter. Participation in the programme was up significantly as a result of the company’s impressive 35% growth in Net Profit in the 1st quarter of 2018 compared to the corresponding period in 2017.
Sterling Investments Limited was formed in 2012 when the JMD/USD exchange rate was J$92 / US$1 and prior to the National Debt Exchange. The company continues to preserve and grow the capital of its shareholders which include pension funds and long-term investors.
To view Sterling Investments Limited 2nd Qtr Results 2018 click HERE