Sterling Investments reports highest profit since listing

Sterling Investments Limited (SIL) at year end 2019 recorded its highest annual net profit since listing on the Jamaica Stock Exchange.

Sterling Asset recorded its best year since listing on the JSE in 2016. (Photo: bloomberg)

Net profit for the twelve months ended December 2019 increased by 88.0 per cent to J$101.2 million compared to J$53.8 million recorded during the corresponding period in 2018.

The  investment company which specialises in fixed income and equity investments across the globe increased foreign exchange gains increased by 90.7 per cent to J$43.9 million during the year.

Directors said in notes attached to the audited financials that SIL’s portfolio benefitted from the rise in global asset prices (in USD terms) which in turn led to a marked increase in total comprehensive income from a loss of J$21.7 million in 2018 to J$211.5 million in 2019.

President and CEO of Sterling Asset Management Charles Ross

Total assets climbed by 35.2 per cent to J$1.63 billion as at December 31, 2019 compared to J$1.21 billion in the prior period.

Net interest income grew by 20.0 per cent, increasing from J$71.2 million in 2018 to J$85.4 million in 2019. The company also recorded an unrealised gain on quoted equities of J$1.9 million.

During 2019, the Jamaican dollar depreciated against the US dollar by J$4.85 or 3.8 per cent, relative to the same period in 2018 when it depreciated by J$2.72 or 2.2 per cent. The change was reflected in net interest margin of 86.9 per cent.

SIL said it used the proceeds of last year’s rights issue for strategic investments which allowed the company to increase both the net interest income and net profit.

“SIL continues to preserve and grow the capital of its shareholders” which include pension funds and long-term investors,” said directors in the company’s annual report.