PanJam Investment Limited's headquarters on Knustford Boulevard in New Kingston, Jamaica. (Photo: PanJam)

PanJam reports rebound in investment income during second quarter

PanJam Investment Limited's headquarters on Knustford Boulevard in New Kingston, Jamaica. (Photo: PanJam)

PanJam Investments Limited. for its second quarter ended June 30, has reported significant increases in investment income when compared to the losses incurred for the same period of the prior year.

“Income from PanJam’s core operations almost tripled when compared to the second quarter of 2020. This performance was driven by an improvement in investment income, which grew to JM$868.9 million, reversing the investment losses seen in the prior year’s second quarter,” the company’s most recent unaudited financial report, posted to the Jamaica Stock Exchange, stated.

Chairman and CEO of PanJam investments Limited Stephen Facey with Paul R. Hanworth, chief operating officer, at an annual general meeting of the company. (File photo)

Occasioned by the novel coronavirus pandemic, investments income during last year’s second quarter suffered a loss of JM$61 million. However, with the addition of property and other income, total income for this quarter amounted to JM$1.4 billion — up from JM$538 million in 2020.

During the second quarter net profit also climbed to JM$1.3 billion and JM$2.3 billion at the half-year mark. Earnings per stock unit for the quarter were JM$1.24 and JM$2.19 for the six-month period.

“PanJam’s results for the first half of the year were driven primarily by investment income of [JM]$1.1 billion [compared to (JM)$1.1 billion of losses in 2020], as the securities trading portfolio generated higher interest income as well as realised and unrealised gains. Property income, [however], declined marginally as a result of lower revaluation gains,” the company’s report further noted.

The company, which holds a minority stake in a number of diverse private entities, also reaped benefits from its investments in these associates, particularly Sagicor Group Jamaica in which it has a 30.2 per cent interest.

PanJam Investments Limited holds a minority in Sagicor Group Jamaica Limited. (File photo)

“Our share of results of associated companies for the first six months of 2021 increased by JM$417.9 million, or 37.2 per cent, driven principally by Sagicor’s results, but also positively influenced by strong performance from New Castle Company,” the directors said.

Total assets for the company at the end of the June quarter also amounted to JM$64.4 billion, up from the JM$62.6 billion at the end of its financial year last December and JM$58.1 billion in June 2020.