Trustco third quarter FY profit N$750 million
Trustco Group Holdings (TGH) this week announced in a statement released on the Namibia Stock Exchange News Service that reported total group revenue for the 9 months ended 31 December 2015 was N$750 million representing an increase of 22.5% from the prior comparative period.
Total headline earnings for the 9 months ended 31 December 2015 was N$155.5 million representing growth of 24.1% from the prior comparative period. Total net profit after tax for the 9 months ended 31 December 2015 was N$155.3 million representing growth of 5.9% from the prior comparative period.
The above resulted in headline earnings per share (HEPS) of 20.64 cents and basic earnings per share (EPS) of 20.61 cents for the 9 months to 31 December 2015. The comparative 9 month period in the 2015 financial year generated HEPS of 17.99 cents and EPS of 21.06 cents.
The group´s core insurance business contributed 4.2 cents per share to EPS for the 9 months to 31 December 2015, which represents a 475.3% increase on the prior comparative period . The increase is attributed to growth in the Namibian insurance revenues, as well as a reduction in operating costs in the South African insurance operations.
Said TGH, “the group adopts an active investment strategy which involves strategic management of various insurance investment subsidiaries in areas including education, air charter, media, and properties. During the 9 months ended 31 December 2015, revenue derived from property sales grew by 10% to N$311 million compared to the prior comparative period.
“The decrease in the profitability of the investments portfolio is attributable to a N$25 million reduction in fair value gains recognised on investment properties compared to the prior comparative period,” TGH explained.
The banking segment in Namibia contributed 8.22 cents per share to EPS for the period which represented 7% growth on the prior comparative period,” according to TGH.
Total gross advances as at 31 December 2015 was N$908 million compared to N$839 million as at 31 December 2014, a growth of 8.2%. As at 31 December 2015, the total regulatory capital adequacy ratio of Trustco Bank Namibia Ltd was 53.85% (Tier 1 ratio of 53.02%).
“At the time of publishing this update, Trustco´s acquisition of Huso Investments (Pty) Ltd had not been fully concluded and therefore the financial results of the acquired entity have not been consolidated into the group´s quarter-end performance.”
“The group results show resilience in the face of recent emerging markets turmoil. This can be attributed partly to the fact that the Namibian economy has remained resilient to this negative sentiment,” TGH concluded.