VM Investments Limited (VMIL), as it continues to navigate various changes in the local and global environment, for its second quarter ended June posted increased profits of $242.5 million — 39 per cent above that of the same period last year.

The company’s directors said that, despite the many obstacles and uncertainties stemming from continued inflationary pressures, rising interest rates, and international political tensions, its performance to date remains robust and in line with key strategic objectives.

For the three month period total revenues grew to $696 million or $1.1 billion year-to-date. Net fees and commission, which accounted for more than half of these revenues, amounted to $354 million.

“The uptick in net profit was a result of a 47.8 per cent increase in other operating revenue when compared to the same quarter in 2021, which was sufficient to offset the 62.8 per cent increase in expenses. Net fees and commissions were the primary drivers of the increase in revenue of 157.3 per cent, attributable to our strong execution of both debt- and equity-related transactions in the review period,” a report on its latest financial performance stated.

“For the second quarter of 2022, VMIL’s funding base expanded with its debt raise of $1.15 billion, while derisking the balance sheet and reducing repurchase agreements by $3.7 billion or 18.3 per cent. Profitable performance resulted in an increase in retained earnings of $317.7 million or 11.7 per cent, but this was countered by a reduction in investment revaluation reserve from $756 million as at June 30, 2021 to -$574.5 million as at June 30, 2022. This was as a result of a reduction in prices of securities held due to the increase in interest rates,” the report also stated.

High off a number of wins during the quarter, including its raise of over $3.5 billion in capital for clients, VMIL said the firm remains committed to improving the lives of its members while promoting the renewed brand.

Noting among its milestone achievements the successful raise of close to $5 billion in capital for microfinance company Dolla Financial Limited from a recent initial public offer (IPO); its investment in Home Choice Enterprise, a food production company; and the launch of the Jamaica Actus Small & Medium Enterprises Fund (JASMEF), a private equity fund to invest over US$100 million in small and medium-sized enterprises (SMEs) done in partnership with London based Actus Partners, VMIL said it will through the efforts of a dedicated team continue to accelerate its strategy for growth in subsequent quarters and for the remainder of the financial year.

“We continue to strive for excellence in service delivery, financial advice, and product offerings and helping our customers and clients navigate the changing investment climate,” the director said in notes affixed to the financial statements.