Pan Jam profit up 29% for Q2

Pan-Jamaican Investment Trust enjoyed a strong 29 percent growth in profit, attributable to owners of the group, for the quarter ended June this year to $627 million. Profit of $486 million was realised in the 2013 second quarter. For the six months to June, net profit hits $1.07 billion, compared to $710 million for 2013, an increase of 50 percent.
Earnings per share amounted to $5.09 for the six months and $2.99 for the latest quarter, earnings for all of 2014 should end up around $12 per share. With the stock selling at $49, there is much room for the stock price to double, that is why it is one of IC Insider BUY RATED stock.
Total revenue was higher for the quarter compared to last year, by $125 million, or 30 percent, due to the improved investment and property income, and ahead of last year for the 6 months by $185 million, or 21 percent as the group generated income of $544 million in the latest quarter versus $419 million in 2013 and $1.08 billion for the six months, compared to $895 in 2013.
The share of results of associated and joint venture companies for the quarter is $537 million and is flat compared to last year, while the six month period share increased by 16 percent to $893 million. Last year’s results were significantly affected by the first quarter NDX impact on Sagicor.Investment income of $123 million, in the second quarter of 2014 was nearly three times higher than the $44 million in the similar quarter last year, principally as a result of better foreign exchange gains of $42 million, versus $23 million last year, and trading gains of $37 million, versus a loss of $21 million in 2013. Year to date investment income of $259 million is 79 percent ahead of 2013, due principally to trading gains of $89 million versus a loss of $29 million in the prior year. Property income grew $54 million, or 16 percent, compared to last year for the quarter and $83 million, or 12 percent, year to date.
Group operating profit for the second quarter increased by $115 million, or 73 percent, compared to last year’s second quarter. For the year to date, group operating profit of $544 million is $157 million, or 40 percent, more than last year’s level.
Operating expenses were contained to $273 million for the June 2104 quarter versus $263 million in 2013 and $536 million for the year to June from $508 million in 2013.
Total assets at June 2014 amounted to $25.1 billion, compared to $23.3 billion at December 2013. Bank and other loans stand at $4.48 billion and stockholders’ equity stood at $19.4 billion from $17.8 billion at December last year, equating to a book value per stock unit of $92.34.
Pan Jamaican is involved primarily in commercial property ownership and rental and owns just over 31 percent of Sagicor Group a life assurance and banking operations.