Sterling Investments Reporting Net Profit For The Six Months Ended June 2019 Growing By 10.4% Year On Year
Sterling Investments Limited headed by President & CEO Charles Ross, has released their unaudited results for Q2 2019, reporting net profit for the six months ended June 2019 growing by 10.4% year on year, the result of increases in interest income and unrealized gains in the portfolio.
The intrinsic value of the company’s assets continues to grow and at the end of the June 2019 quarter the stock units had a book value of J$3.22.
Net Interest income totalled J$39.5 million for the six months, 7.2% higher than the $36.9 million recorded for the corresponding period in 2018.
According to the report published on the Jamaica Stock Exchange website, the company has effectively used low cost funding to purchase attractively yielding assets, thereby increasing the return to its investors.
This is reflected in the company’s robust net interest margin of 85.7%.
The company has successfully taken advantage of intermittent market sell-offs to purchase undervalued, high quality securities, as a result, gains on sale of debt securities totaled $1,842,027, up more than 250% from the corresponding period in 2018.
Unrealized foreign exchange gains for the six months ended June 2019 totaled J$28.8 million compared to J$38.4 million in June 2018.
Profit after taxes for the six months increased by 10.4% to J$57.1 million compared to J$51.8 million recorded during the corresponding period in June 2018.
Total assets increased by 19.9% from J$1.25 billion as at June 2018 to J$1.49 billion as at June 2019, reflecting growth in investment securities, which increased by 20.3% over the same period in 2018.
This the company reports were mainly funded by the proceeds of the rights issue held in January 2019.