Net interest income increased 37% to J$137.97 million

Jamaican financing company, Eppley Limited has seen a slight dip in its profitability for 2022 but recorded a surge in total comprehensive income for the year.

Eppley, which invests in credit products including insurance premium, loan and lease financing and providing asset management services saw its net profit for the year ended December 2022, declined five per cent to J$238.80 million. For the December quarter, net profit declined 31 per cent to J$50.65 million (2021: J$73.72 million).

However, profit before taxation inched up one per ent to J$269.84 million (2021: J$268.47 million). For the last quarter, pre-tax profit increased seven per cent to J$79.61 million (2021: J$74.61 million).

TAXATION CHARGES

Earnings per share (EPS) amounted to J$1.24 (2021: J$1.31). For the last quarter, EPS amounted to J$0.26 (2021: J$0.38). Eppley last traded at J$37.00 yesterday April 3, 2023 with a corresponding P/E ratio of 29.82 times.

Taxation charges surged 84 per cent to J$31.05 million (2021: J$16.83 million). For the fourth quarter, taxation charges soared to J$28.96 million from J$893,000 in 2021.

At the same time, total comprehensive income declined 10 per cent to J$240.53 million (2021: J$266.09 million), while it also declined 41 per cent to J$50.34 million (2021: J$84.67 million).

RISE IN NET INTEREST INCOME

Net interest income went up 37 per cent to J$137.97 million (2021: J$100.94 million). For the quarter, net interest income increased 39 per cent to J$26.04 million (2021: J$18.77 million). Asset management income jumped 29 per cent to J$283.34 million (2021: J$219.11 million).

For the December quarter, asset management income increased 94 per cent to J$80.14 million (2021: J$41.37 million). Other operating income declined 35 per cent to J$91.48 million (2021: J$140 million) while for the December quarter, other operating income declined 36 per cent to J$50.94 million (2021: J$79.53 million).

Administrative expenses increased 15 per cent to J$243 million (2021: J$211.69 million) while the December quarter administrative expenses climbed 18 per cent to J$74.67 million (2021: J$63.09 million).

56% INCREASE IN CASH AND DEPOSITS

Net impairment of financial and contract assets increased 97 per cent to J$2.90 million (2021: J$1.47 million). Share of net profit from joint venture declined 86 per cent to J$2.94 million (2021: J$21.58 million).

Total assets as at December 31, 2022 amounted to J$5.61 billion (2021: J$5.52 billion), an increase of two per cent year over year. This is primarily attributed to a 56 per cent increase in ‘Cash and Deposits’ to J$1.03 billion (2021: J$661.40 million).

Shareholder’s Equity as at December 31, 2022 increased one per cent to J$1.10 billion (2021: J$1.09 billion). This resulted in a book value per share of approximately J$5.69 (2021: J$5.66).