Solid Performance For PROVEN In Q1; Net Profit Up 59.3%  

  • PROVEN Limited recorded a net profit attributable to shareholders of US$2.78Bn for the first quarter that ended June 30, 2023. This represents a 59.3% yoy increase in profitability and was derived from strong performances in most of the operating divisions, particularly from better-than-budgeted results for the banking division during the quarter.
  • Profits were driven by higher net interest income due to increases in interest rates; strong operations from the manufacturing subsidiary; and the sale of residential developments in Grand Cayman. This outweighed a decline in fee and commission income that stemmed from the downturn in regional and international investment space.
  • For the quarter, expense growth was moderate (+ 8.1%) to end the quarter at US$15.71Mn compared to US$14.53Mn in the prior year, mainly due to an increase in other operating expenses, offset by a write-back of IFRS 9 provisioning.
  • PROVEN’s stock price has decreased by 20.3% since the start of the calendar year. The stock closed Wednesday’s trading session at $22.37 and currently trades at a P/B of 0.9x which is below the Main Market Financial Sector Average of 1.5x.
  • Management expects PROVEN Bank and PROVEN Properties will help to drive near-term performance. The high-quality assets of PROVEN bank, which mainly comprises variable rate residential mortgage loans in Cayman and a portfolio of investment grade bonds with a relatively low duration, are well positioned to benefit from the current high-interest rate environment. The Group, therefore, expects that the Banks will continue to perform very well over the coming quarter.
  • As it relates to PROVEN Properties, the company has indicated that it will continue to opportunistically expand the portfolio by executing creative deal structures and targeted marketing campaigns that will extend its deal pipeline in Jamaica, Grand Cayman and Barbados. The upcoming year will be a busy one consequent on the launch of two major residential development projects, Sol Harbour in Ocho Rios and Bahari in Runaway Bay. The company will also focus on growing its industrial real estate portfolio with the completion of the Aashgo warehouses in Grand Cayman and ground-breaking for the Kingston Gateway Warehouses in Jamaica in the current financial year.

(Source: JSE)