Somers posts record $190m quarterly profit
Financial-services investment holding company Somers Ltd has reported record quarterly net income of $190 million for the fourth quarter of 2020.
That compares with net income of $74.6 million for the final quarter of 2019.
Earnings per share in the quarter were $8.90 compared to $3.61 in the fourth quarter a year ago.
Net asset value per share at the end of December was $28.35, an increase of 43.3 per cent over the quarter, and shareholders’ equity was $605 million.
Somers’ total assets increased to $711.6 million compared to $508.6 million at September 30.
During the quarter, Somers recorded a $179.9 million gain on its investment portfolio. This compares with a gain of $71.1 million in the same period in 2019.
The company said the majority of its investments increased in value during the quarter although the gain was driven principally by an increase in the value of the company’s largest investment in Resimac, whose share price increased by 50.7 per cent during the quarter in response to its strong results for the year ended June 30, 2020. In addition, there were valuation increases at PCF, Waverton, MJ Hudson and Bermuda Commercial Bank, the company said.
The investment portfolio was $706 million at December 31 compared to $500.9 million at September 30.
Within investments, Resimac at $419.8 million, Waverton at $84.4 million, Bermuda Commercial Bank at $70.1 million, and PCF at $55.8 million together represent 89.3 per cent of total investments, the company said.
Net foreign exchange gains were $25 million for the quarter compared to $13.2 million for the same period in 2019.
Peter Durhager, chairman of Somers, said: “Somers had an excellent fourth quarter of the financial year recording our highest ever quarterly profit.
“Global markets finished 2020 strongly and this was reflected in the increased valuations of a number of our investments and in particular, Resimac, our largest investment, whose share price increased materially from A$1.42 to A$2.14 over the quarter. With favourable foreign currency movements, Somers reported a quarterly profit of $190 million and a net asset value per share of $28.35, an increase of over 40 per cent for the quarter.”
He added: “Our investments have performed strongly against the prolonged backdrop of Covid-19. We recognise that the road ahead may well be volatile as Covid-19 vaccinations are rolled out and new strains of the virus emerge, but our investments are well positioned to grow further as the global economy continues its recovery in the current ultra low interest rate environment.”
Somers announced the sale of Bermuda Commercial Bank Ltd on November 19 to Provident Holdings Ltd. The sale is subject to government and regulatory approval.