Sat | Sep 23, 2017

Proven reports upswing in profit

Published:Wednesday | February 15, 2017 | 2:00 AM

Proven Investments Limited made US$1.4 million net profit after tax for its December third quarter, which reversed the loss a year earlier, primarily due to a growth in securities trading, fees and commissions.

Net revenues totalled US$5.6 million versus $2.9 million a year earlier. In the latter period, it made a loss of more than US$440,000.

"We continue to monitor the investment arena and strategically adjust our positioning to take advantage of opportunities that fit our risk-reward criteria diversifying our portfolio across fixed-income sectors and non-bond sources of income with varied risk exposures to lower volatility, while enhancing our expected risk-adjusted returns," said the company led by Chris Williams.

Over nine months, net revenue totalled US$19.9 million, up from US$14.1 million.

Net profit doubled from US$3.4 million to US$6.7 million in the same period. Proven made earnings per share of 0.86 US cents versus 0.37 US cents a year earlier. The stock traded at 37 US cents on Monday but fell to 30 US cents on Tuesday.

Spread income was the major contributor to revenue during the nine-month period with net interest income amounting to US$10.5 million, compared to $10.6 million a year ago. Dividend income increased 8.7 per cent to US$1.1 million from US$0.98 million for the prior period, due to the realignment of the investment portfolio, the company said.

Last year, Proven Investments entered into an agreement to fully acquire the Bank of St Lucia International (Boslil) from Eastern Caribbean Financial Holding Company Limited. The acquisition of the shares is scheduled to be completed by the end of March. PIL expects Boslil to "provide a solid platform for further growth".

The bank's asset will double Proven's consolidated balance sheet to US$700-800 million. Proven's balance sheet totals US$358 million, while Boslil's is about US$336 million.

Proven began operations in 2010. The group includes Proven Wealth, Proven REIT, Asset Management Company and Proven Fund Management, all wholly owned; while it controls 49 per cent of Access Financial Services.

steven.jackson@gleanerjm.com