SCI Doubles Profit on Strength of Puerto Rican Business; Eppley Lifts H1 Earnings 11.0%

Two of the JSE’s alternative-investment managers posted improved results for periods ended June 30, 2026, although the drivers differed. Sygnus Credit Investments Limited (SCI) delivered the strongest financial year in its history, supported by portfolio growth, improved investment valuations and a larger contribution from Puerto Rico. Meanwhile, Eppley Limited (EPLY) posted higher first-half earnings as growth in its investment and asset management businesses offset rising operating costs.
SCI's record performance was underpinned by stronger portfolio income and a sharp rebound in investment valuations. Total investment income rose 27.9% to a record US$19.68Mn, while net profit attributable to shareholders more than doubled to US$9.55Mn (+123.1%). The earnings uplift was driven by fair value gains of US$0.63Mn, compared with losses of US$2.09Mn a year earlier, which outweighed a US$0.47Mn foreign exchange loss and a 12.2% increase in the impairment allowance charge to US$3.86Mn. The higher charge largely reflected allowances against one stage 2 portfolio company^[1] whose private credit terms were restructured and finalised during the year, alongside increased provisions for Jamaican portfolio companies recovering from Hurricane Melissa.
Portfolio growth continued to drive recurring earnings, with net interest income reaching a record US$11.75Mn (+32.5%), as interest income climbed 18.0% to US$26.30Mn. Investment income from the Puerto Rico Credit Fund also climbed 21.2% to a record US$7.66Mn, reinforcing the growing importance of the company's regional credit platform.
Operating expenses increased just 7.1% to US$5.76Mn, allowing net investment income to rise 39.0% to US$13.93Mn and reducing the efficiency ratio to 29.2%, comfortably below management's 40% target. SCI also strengthened its long-term growth platform through both acquisitions and funding. Acrecent Financial delivered record earnings of US$8.10Mn (+57.3%), prompting SCI to increase its ownership to 95.85% through a further US$2.00Mn investment.
Eppley also benefited from a larger investment portfolio, although its earnings profile was driven more by recurring investment income than valuation gains. Gross investment income rose 13.0% to J$888Mn, led by a 91.7% increase in net operating lease income and continued growth in rental, interest and asset management income. Together with slightly lower interest expense, this lifted net investment income to J$550Mn from J$441Mn.
The improvement in net investment income was partly offset by higher operating costs, leaving pre-tax profit broadly unchanged. Administrative expenses rose 37.0% to J$338Mn, reflecting inflation, new office space and team expansion, while fees and other operating income declined 25.7%. Profit after tax nevertheless increased 11.0% to J$455Mn, aided by a J$13.5Mn tax credit compared with a J$30.7Mn tax charge in the prior year, with J$259Mn attributable to Eppley shareholders.
At the close of trading on Monday, August 31, 2026, SCIJMD's ordinary share price stood at J$10.09, while EPLY closed at J$33.92. On a year-to-date basis, SCIJMD has depreciated by 14.9%, while EPLY’s stock price has been essentially flat (-0.03%). At these levels, SCIJMD trades at a P/B of 0.3x and EPLY at a P/B of 2.5x, placing SCIJMD below and EPLY above the Main Market Financial Sector average of 1.0x.

(Sources: Sygnus Credit Investments Ltd, Eppley Ltd & NCBCM Research)

^[1] A stage 2 portfolio company is one that has deteriorated materially.