The continued depreciation of the Jamaican dollar and strategic investments over the past two years paved the way for Sterling Investments Limited (SIL) to double its net profit during the second quarter (April to June).

SIL is an investment holding company that invests in hard currency financial assets to protect the real value of its portfolio for shareholders which are largely pension funds. However, the company reports its financials in JMD which means that the three per cent depreciation of the JMD against the United States dollar translated to a $26.71-million foreign exchange gain, 69 per cent higher than the $15.78 million in the prior period.

The company’s move to invest in higher yielding assets during the period of rising interest rates has paid off as its interest income grew by a third to $32.86 million with overall income up 38 per cent to $58.16 million.

The move to reduce its margin loan balance by three-fifths resulted in the company’s interest expense being cut in half to $3.50 million. SIL’s overall expenses declined 12 per cent to $22.37 million as its other operating expenses declined. After accounting for other income, SIL’s net profit for the second quarter increased 119 per cent from $16.51 million to $35.79 million.

“In a year where volatility has defined the market, SIL has demonstrated resilience and strength. These results reflect the effectiveness of our investment strategy and our commitment to building sustainable value for our shareholders, reinforcing SIL’s role as one of Jamaica’s stronger public companies.” stated Charles Ross, President and CEO of Sterling Asset Management Limited (SAM) in a press release. SAM is the investment manager of SIL.

For the overall six months, SIL’s total income went up 75 per cent from $72.15 million to $126.90 million due to the near tripling of its foreign exchange gains to $49.40 million and interest income of $67.45 million. Despite the company’s recording a $11.68-million fair value loss for the period, SIL’s total expenses decreased four per cent to $44.24 million due to lower interest expense costs. This resulted in SIL’s net profit increasing 222 per cent from $25.71 million to $82.72 million.

“What’s most encouraging is not just the increase in revenue, but the efficiency gains we’ve achieved across the business. By tightening expenses while growing income streams, we’ve created a model of sustainable profitability that positions SIL to thrive even when the broader market is under pressure,” Ross added.

SIL’s asset base six per cent for the six months period to $1.73 billion with $1.59 billion as investment securities. Total liabilities decreased by 49 per cent to $174.29 million as the company cut its margin loan from $321 million to $133.53 million over the same period. Shareholder’s equity grew five per cent to $1.55 billion as the company benefited from higher retained earnings and fair value gains on its investments.

SIL’s JMD stock price closed Thursday at $3.20 which left the stock up 17 per cent in 2025 with a market capitalisation of $1.39 billion. The USD stock closed at US$0.0208 which leaves it up 21 per cent in 2025.

SIL declared a dividend of US$0.000484 totalling US$210,689.63 to be paid on September 12 to shareholders on record as of August 22. This brings the total dividend payment for 2025 to US$0.000946 which translates to a dividend yield of 4.55 per cent. Since SIL is a St Lucian international business company, dividends paid to Jamaican shareholders are tax free under the Caricom double taxation treaty.

Sterling shareholders who have signed up for the dividend reinvestment programme will receive new shares in the coming weeks. September 30 also marks the final day of Q3 investors to buy new shares under the company’s complementary share purchase programme where investors can purchase new shares in the company with no fees.

“We remain committed to creating long-term value for our investors. Our strategy continues to focus on measured, prudent growth, and we are confident in our ability to navigate these challenging market conditions while continuing to outperform,” Ross closed.