Durrant Pate/Contributor

Investment company Eppley has seen its profitability decline by six per cent during 2022, due in part to a 10 per cent drop in total comprehensive income.

Net profit for the year went down to J$237.36 million from the J$251.63 million booked in 2021. The fall-off in profitability was steeper during the December fourth quarter when net profits declined by 31 per cent to close at J$50.65 million compared to J$73.72 million a year ago.

The fall-off in profitability was due in part to total comprehensive income going down 10 per cent to J$239.10 million from the J$266.09 million posted in 2021. For the December quarter, total comprehensive income declined even further by 41 per cent to J$50.34 million, down from the December 2021 booking of J$84.67 million.

Modest rise in net interest income

Net interest income increased 37 per cent to J$137.97 million (2021: J$100.94 million). For the fourth quarter, net interest income increased 39 per cent to J$26.04 million (2021: J$18.77 million).

Asset management income increased 22 per cent to J$267.88 million (2021: J$219.11 million). For the final quarter, asset management income increased 94 per cent to J$80.14 million (2021: J$41.37 million).

Other operating income declined 24 per cent to J$106.95 million, down from J$140 million in 2021. For the December quarter, other operating income declined 36 per cent to close at J$50.94 million (2021: J$79.53 million).

Administrative expenses increased 15 per cent to J$243.19 million (2021: J$211.69 million). For the quarter, administrative expenses increased 18 per cent or J$74.67 million (2021: J$63.09 million).

Net impairment of financial and contract assets increased 84 per cent to J$2.71 million (2021: J$1.47 million) while for the December quarter, net impairment of financial and contract assets increased 53 per cent to J$2.78 million. Taxation charges increased 93 per cent to J$32.48 million (2021: J$16.83 million).

Balance sheet highlights

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).