Tax Credit props up VMIL’s Bottom-line

• For the six months ended June 30, 2020, Victoria Mutual Investment Ltd. reported an unaudited audited net profit of $170.89Mn (EPS: 11¢), down by 32.4% (or $81.89Mn) YoY.
• The company saw a pull-back in all revenue lines— net interest income was down marginally (-0.6% YoY), while other operating income contracted (18.7% YoY).  Combined with higher operating costs (up 21.7% YoY), the company’s profit before tax sank (72.1%) to $90.43Mn.  The bottom-line was supported by an $80.46Mn tax credit. 
• The stock price has fallen 22.5% since the start of the calendar year, closing the Wednesday trading session at $6.94. At this price, the stock currently trades at a P/E of 20.4x earnings, which is above the Main Market Financial Sector Average of 14.8x.

 (Source: VMIL Financials)