VMIL’s Earnings Rebound While Barita’s Decelerates in December Quarter

  • December 2025 quarter earnings releases for securities dealers, VM Investments Limited (VMIL) and Barita Investments Limited (BIL) told divergent stories. VMIL’s earnings rebounded, while Barita saw its earnings slip over the same period.
  • For VMIL, quarterly earnings increased to $155.8Mn compared to a $91.5Mn loss in the prior-year period as a 44.4% revenue decline was countered by a 64.7% reduction in total expenses. Its lower revenues reflected a downturn in global financial markets that weighed on trading activity and heightened capital market volatility that adversely impacted deal flow. Investor confidence was further tempered by ongoing geopolitical and macroeconomic uncertainty across major developed economies. Meanwhile, its improved cost base was largely attributable to favourable adjustments to credit loss provisions, reflecting strengthened collateral positions across VMIL’s loan portfolio, along with lower management fees.
  • However, VMIL’s quarterly improvement was not enough to raise annual earnings, which tumbled by 68.7% to J$173.87Mn. Macroeconomic headwinds, subdued capital markets activity and the absence of a one $422Mn one-off gain from the sale of Carilend1, which significantly elevated the prior year’s earnings, were the culprits. Looking ahead, VMIL’s management has indicated that it will focus on revenue growth through innovative asset management products, deeper client engagement, and enhanced operational efficiency via greater technology adoption.
  • Meanwhile, BIL reported a 62% decline in net profits to J$211Mn for its first quarter ended December 31, 2025, reflecting both weaker revenues (-17.9%) and higher operating expenses (OPEX: +21.5%).
  • The decline in revenues was primarily due to lower equity valuations amid softer market conditions. On a positive note, net interest income increased 31%, supported by balance sheet growth. However, non-interest income declined 24%, driven by a reversal of investment gains. In the same breath, OPEX was spurred by lower credit loss reversals relative to the prior year and higher administrative costs. These expenses, however, were partially offset by a 6% reduction in staff expenses.
  • Consequently, operating profits fell to J$254.35Mn, from J$675.39Mn, while operating margin declined to 21.6% from 47.0% in the previous corresponding quarter, leading to lower quarterly earnings.
  • Despite the quarterly slowdown, BIL has made moves that could raise future earnings. During the quarter, it acquired 100% of JN Fund Managers Limited (JNFM). This is set to strengthen the company’s asset management platform and position it to expand its recurring fee-based revenues across Jamaica and the wider Caribbean. However, value accretion from the acquisition will require disciplined execution to realise revenue and cost synergies.
  • Barita also continues to transition its alternative investment portfolio toward development-driven, cash-generating real estate projects. With two major sites advancing through pre-development, the Group is shifting from mark-to-market valuation gains toward more predictable, project-based returns, aligning with its long-term capital deployment strategy.
  • Since the start of the year, VMIL and BARITA’s stock prices have decreased by 15.42% and 4.19% to close at $1.81 and $69.01 on Tuesday, February 17, 2026. At this price, VMIL trades at a P/B of 0.88x, below the Main Market Financial Sector Average of 1.11x, while BIL's P/B of 2.36x sits above this sector average.

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1In 2019, VMIL made a private equity investment in fintech company Carilend.

(Sources: VMIL and BARITA Financial Release)