Business
JM | Nov 14, 2020

Victoria Mutual Investments Limited expanding its branch network across Jamaica

/ Our Today

administrator
Reading Time: 3 minutes

10 locations to be established by end of 2020

Rezworth Burchenson, chief executive officer, Victoria Mutual Wealth Management.

Victoria Mutual Investment Limited (VMIL) is ramping up its capital market branch network across Jamaica, promising to add another two next month.

The capital market arm of VMIL is traded under the name Victoria Mutual Wealth Management (VMWM). The latest addition to the VMWM branch network took place last month when the office in Savanna la mar, Westmoreland was opened.

This took to eight the number of VMWM locations to open islandwide. The branch expansion is a part of VMIL’s strategy to expand its client reach while improving accessibility and client convenience.

The number of VMWM branch locations will be increased from four to 10 during 2020. Two more branches are to be rolled out next month in Half Way Tree and Duke Street, downtown Kingston.

They will be added to the branches already in operation at the University of Technology, Ocho Rios, New Kingston (Head Office), Portmore, Mandeville and Montego Bay.

VMIL FINANCIALS

Turning to the company’s latest financials for the quarter and nine months ended September 30, 2020, there was a marginal decline in consolidated revenue of $1.33 billion. This was down $30.66 million when compared with the corresponding period of 2019.

For the September quarter, total revenue increased from $537.27 million to $615.32 million, as revenues for the third quarter showed a strong increase over the $268.37 million booked in the first quarter. The consolidated revenue for the second quarter was $449.78 million.

After tax profit for the nine months period amounted to $361.83 million, reflecting a decrease of $135.56 million over the corresponding period of 2019. The third quarter performance was predominantly driven by VMWM with fee income of $162.08 million when compared to the $72.04 million earned in the third quarter of 2019 and the Asset Management Unit with fees of $94.55 million, an increase of 15% when compared to the third quarter of 2019.

VMIL also earned other income, representing foreign exchange translation gains of $157.39 million versus $25.05 million in the third quarter of 2019.

BIG JUMP IN OPERATING EXPENSES

Operating expenses for the period under review totalled $901.61 million, representing a big increase of $192.63 million or 27.17 per cent when compared to the prior year period. The increase in cost is primarily attributable to the expansion of the VMWM branch network, which is aligned with the company’s strategic goal of increasing its Asset Management business in the medium term.

The increase in other expenses is mainly related to impairment losses on financial assets arising from the pandemic-related downturn in the financial market, asset tax and support services required to grow our business. Notwithstanding the expansion initiatives, VMIL reports that cost containment efforts are an ongoing exercise.

The cost containment exercise thus far has resulted in a decline in the third quarter costs, which came out at $289.98 million when compared to the $347.81 million for the first quarter of 2020

During the review period, total assets increased by $2.31 billion to $26.70 billion, primarily attributable to the tremendous growth in our loan portfolio of $1.27 billion. This was also complimented by a $1.01 billion increase in investment securities.

Total liabilities on the other hand recorded a 14.13% increase to $22.80 billion as at September 30, 2020. This was driven mainly by an increase in repurchase agreements.

VMIL’s capital base continues to be strong with total shareholders’ equity standing at $3.90 billion as at September 30, 2020, despite the decrease of $515.45 million (or 11.68 per cent) from $4.41 billion at the end of September 2019. This resulted in a book value per share of $2.60 (2019: $2.94). 

Comments

What To Read Next