As global markets continue to recover from the novel coronavirus pandemic-induced declines in 2020, QWI Investments Limited’s performance continues to improve as its net profit for the quarter ending June 30 improved by 42 per cent to $163.71 million.
This was largely driven by unrealised gains on its Jamaican portfolio of $144.88 million, which arose from its holdings in Caribbean Cement Company, JMMB Group Limited, Jamaica Teas Limited and GraceKennedy Limited.
Along with its overseas portfolio of stocks and strong dividend income, QWI’s total income base for the quarter was $232.23 million compared to the $128.89 million in the prior period.
Even with a slight increase in administrative expenses and interest expense for its margin loan, profit before taxation rose by 82 per cent to $214.36 million. Net profit for the 9 months stood at $334.43 million, while the net loss was $461.05 million. Earnings per share for the quarter came up to $0.12 versus the $0.08.
As a result of improving market sentiment, QWI’s investment portfolio currently stands at $2.27 billion, which is higher than its post initial public offering balance. This has resulted in the company now having an accumulated surplus with shareholders equity now at $1.81 billion. QWI intends to hold its annual and extraordinary general meetings in the coming weeks where it will consider changes to its articles of incorporation and a share buy-back option.