Yoma bank per­for­mance helps FMI post prof­its

The Myanmar Times - - Front Page - STEVE GIL­MORE s.gil­more@mm­times.com

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.

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