Profit jumps 71% at Eppley

Profit climbed 71 percent in the September quarter at Eppley this year, to reach $36 million from $21 million in 2017 period. For the nine months to September, profit surged a slower 56 percent to $80.7 million from $51.6 million in 2017.
Interest income rose 27 percent for the quarter, to $84.6 million, up from $66.7 million and rose 23 percent for the year to date, to $234 million compared to $191 million in 2017. Other operation income increased a strong 105 percent to $34 million from $16.7 million in the 2017 third quarter and is up 73 percent to $68.5 million for the nine months.
Net interest income grew to 47 percent of income versus 36 percent in 2017 in the quarter and 46 percent for the 2018 nine months period compared to 39 percent for 2017, the improvement resulted from cheaper funds acquired during the year as interest rates in the country fell sharply.
Administrative expenses rose 90 percent to $39 million in the quarter and increased 55 percent in the nine months period to $98 million.
Earnings per share came out at 19 cents for the quarter and 42 cents for the nine months and should end the fiscal year ending around 60 cents and for 2019 it should be in the region of 90 cents.
Gross cash flow brought in $75 million but changes in working capital and net loan inflows and the payment of $46 million, resulted in a modest decline in funds of $15 million for the nine months. At the end of September, shareholders’ equity stood at $740 million with borrowings at 2.27 billion. Loans receivables including lease and premium financing is $2,13 billion while investments in securities amounted to $363 million. Cash and bank balances the period at $384 million.
The stock traded at $8 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 13 times 2018 earnings. Net asset value is $3.85 with the stock selling at just over 2 times book value.

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