PanJam Reports Second Quarter 2018 Profit of $982 Million
KINGSTON, JAMAICA: PanJam Investment Limited (PanJam or the Group) increased profits on strong performance from core operations in the second quarter of 2018.
Net profit attributable to stockholders for the quarter ended June 30, 2018 amounted to $981.9 million, an increase of six per cent relative to the same period in 2017. Earnings per stock unit were $0.93.
Total income grew by 31 per cent when compared to the second quarter of 2017. This performance was driven by a substantial improvement in investment income resulting from foreign exchange and unrealised trading gains, and higher dividend income. Property income increased by 22 per cent to $456.6 million due to higher rental and net lease income, and property revaluation gains. The $23.5 million decline in other income reflects a one-off income item in the previous year.
During the second quarter, PanJam exited one of its Canadian real estate investments, treated for accounting purposes as an associated company, with $47.3 million reflected as a gain on disposal.
Share of results of associated companies for the quarter decreased by eight per cent to $954.9 million, primarily due to a reduction in the earnings of Sagicor Group Jamaica Limited (Sagicor), in which the Group holds a 31.6 per cent ownership stake. Sagicor’s earnings reflect strong new business growth and improved results from commercial banking, but were impacted in particular by impairment charges on Barbados sovereign bonds and realised losses on certain securities.
For the six-month period ended June 30, 2018, Group total income grew by 17 per cent, driven by increases in investment and property income. Operating profit increased by 33 per cent to $335.3 million, while share of results of associated companies declined marginally to $1.8 billion. Accordingly, net profit attributable to stockholders totalled $1.8 billion, a three per cent increase relative to the same period in 2017.
Paul Hanworth, PanJam’s Chief Operating Officer, said “In line with PanJam’s strategy, we have grown our securities portfolio and deployed additional capital in real estate. The results of these investment decisions are reflected in the performance of our core operations, with second-quarter operating profit more than doubling when compared to the same period in 2017. Looking ahead, we will continue to diversify our income streams, while remaining confident that our current investments provide a strong base for long-term growth.”
On August 6, 2018, PanJam’s Chairman and Chief Executive Officer, Stephen Brian Facey, was appointed to the Order of Distinction in the Rank of Commander. Mr. Facey received the honour for his outstanding contribution to the Real Estate Development, Banking and Financial Insurance Sectors. Mr. Facey’s appointment highlights his over 35 years of professional experience and dedication to Jamaica. He will join the list of distinguished citizens who render important services to our country. The PanJam family congratulates him on this well-deserved honour and look forward to our continued pursuit of his vision to grow Jamaica.