Yoma bank performance helps FMI post profits
Higher revenue from Yoma Bank and healthcare services helped FMI record half-year profits that increased more than 50 percent over the same period last year.
HIGHER revenues from Yoma Bank and Pun Hlaing Hospital helped First Myanmar Investment increase sixmonth profits by over 50 percent compared to the previous year, the firm announced yesterday.
FMI’s net profit from the first half of this financial year was K6.2 billion – almost 52 percent higher than the same period the previous year. Gross and pre-tax profits were up by over one half, while revenue – at K74.6 billion – was up 49pc.
Financial services made up the bulk of first half revenue, bringing in K67.4 billion, while healthcare revenue amounted to K7.1 billion.
Most of the year-on-year increase in revenue was down to Yoma Bank, which posted a 64pc increase in income from interest over the period, and increased its income from fees by over 37pc, FMI said.
Yoma Bank’s loan book reached K850 billion as of September 30, up from K722 billion at the end of March. Deposits reached K1.2 trillion, and the bank increased its non-current assets through purchasing Myanmar treasury bonds, according to the FMI results.
The lender is also co-owner, along with Telenor, of the country’s first licensed mobile-money service – Wave Money. The service is on track to reach around 6000 outlets by December 2016, FMI said.
Pun Hlaing Siloam Hospital also posted higher revenues – up 25pc – driven by “inpatient occupancy” and higher income from services, FMI said.
The rise in FMI’s expenses – from K17.6 billion to K20.4 billion – came mainly from the cost of hiring “highly qualified” staff to help grow the business, the firm said. There was also a one-off expense from listing on the Yangon Stock Exchange earlier this year.
There was stark drop in profits from associate firms, which was due mainly to a K415 million loss from Chindwin Holdings – operator of the Balloons over Bagan tourism business. FMI and affiliate firm Yoma Strategic, which co-owns Chindwin, are planning to transfer that firm into a separate tourism-focused entity scheduled to start operating in 2017.
Thanlyin Estate Development – “historically the group’s most important associate [firm]” – continued to record slower sales from the Star City housing project, FMI added. That associate firm recorded K72.8 million in net profit in the first half of the financial year.
FMI reported a K4.2 billion gain from selling shares in Myanmar Thilawa SEZ Holdings (MTSH), but as of September still held a 2.5pc stake. MTSH was the second firm, after FMI, to list on the YSX.
A weakening kyat cost the firm K1.6 billion in losses on foreign currency. The kyat has lost over 11pc of its value against the dollar since July. That loss stemmed primarily from a dollar-denominated loan from Bangkok Bank, and from Yoma Bank, which holds dollars as part of its currency exchange and foreign currency account business, FMI said.
FMI also drew down the second tranche of the Bangkok Bank loan, which was the main driver of a K34.1 billion increased in non-current liabilities over the period.
FMI’s shares closed unchanged at K16,000 on the YSX yesterday.