Sterling profits are up 30%

Business

Sterling profits are up 30%

Friday, August 14, 2020

Print this page Email A Friend!


Sterling Investment Limited (SIL) on Wednesday posted a net profit of $74.41 million for the six-month period ended June 30, 2020. This represents a 30.25 per cent increase over the previous corresponding period.

The investment holding company, which is managed by Sterling Asset Management, for the period under review, recorded a net interest income of $52.29 million, a 32 per cent increase when compared with the $39.51 million recorded in the previous corresponding period. This is due to a decline in interest expense and growth in the size of the portfolio.

SIL invests in fixed income and equity investments across the globe.

Other operating expenses for the six-month period totalled $17.90 million, a small decline when compared with the $18.04 million expenses recorded for the corresponding period in 2019.

Total revenue for the period under review driven by higher interest income and unrealised foreign exchange gains totalled $131.32 million, an increase when compared with the $76.78 million recorded in the previous corresponding period.

Unrealised foreign exchange gains for the six months amounted to $64.29 million, an increase when compared with the $28.84 million recorded for the corresponding period in 2019.

The Jamaican dollar depreciated against the US dollar by $7.44 or 5.61 per cent for the six-month period, relative to the corresponding period in 2019 when it depreciated by $3.35 or 2.62 per cent.

“SIL is uniquely poised to grow amidst the market uncertainty. The company's strength lies in its portfolio which holds mostly US denominated global bonds, which provide steady interest income with a high net interest margin. The lowered market interest rates continue to benefit bonds, which in turn have reduced margin costs and increase the value of the SIL's portfolio,” the company stated in its report to shareholders.

Total assets for the period under review amounted to $1.67 billion, an increase of 11.8 per cent from the $1.49 billion recorded for the corresponding period in 2019.

As at the period under review, earnings per share stood at $0.20, up from the $0.16 recorded in the corresponding period in 2019.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT