Unaudited information from the Invalda INVL group for the 3 months of 2022
Invalda INVL announces its results for the first quarter (Q1’2022) which saw equity levels rise to 113.1 million euros or 9.63 euros per share. The level recorded is 6.7% lower than at the end of 2021.
Invalda INVL recorded a loss of 8.1 million euros in the first quarter of 2022, compared to a net profit of 2.8 million euros in the same period last year.
Assets under management for clients of Group companies amounted to 1.591 billion euros at the end of the first quarter of 2022, i.e. 1% less than at the start of 2022 (1.609 billion euros). However, the number of clients who entrusted their funds to the Invalda INVL group increased by 0.6% to 262,100.
“Negative economic headwinds in financial markets, influenced by the threat of recession, inflationary pressure, market prices and asset valuations, combined with geopolitical instability, including the war in Ukraine, have all contributed to a depreciation of the majority of assets in the global market. The reality of this overall situation unfortunately affects all investors, with the overall loss of INVL clients amounting to 51.2 million euros. This decline in the value of investments has also resulted in losses for Invalda INVL in the first quarter of this year”, commented Darius Šulnis, President of Invalda INVL.
Asset management and life insurance business
Invalda INVL’s revenue from the operational part of its asset management business (the management of funds entrusted by clients) totaled 3.4 million euros in the first quarter of this year, an overall increase of 19% compared to the corresponding period in 2021.
The operational asset management activity generated a loss of 0.5 million euros in the first quarter of 2022, compared to a loss of 24,000 euros in the same period last year. Overall asset management activity, including investments in collective investment schemes managed by INVL, generated a profit of €1.1 million, although down nearly 39% from compared to the first quarter of 2021.
This result is mainly explained by an increase in the value of the INVL Baltic Sea Growth Fund. The Fund successfully completed the merger of InMedica and MediCA Group at the end of March this year. As a result of this activity, he created a leading private network providing medical and healthcare services to the public throughout Lithuania.
INVL Life, a subsidiary created by Invalda INVL received its life insurance license in March this year. INVL Life, with a share capital of 48 million euros, the largest of the Baltic life insurance companies, will soon take over the Baltic business activities of Mandatum Life, a Finnish life insurance company. This transaction will give INVL Life more than 30,000 customers in Lithuania, Latvia and Estonia, as well as the highly valued employees of these branches.
Invalda INVL’s other own participations, excluding asset management and life insurance activities, generated a loss of 9.9 million euros. This is mainly explained (EUR 10.8 million) by a fall in the value of Šiaulių Bankas and Moldova-Agroindbank (“maib”), the largest bank in Moldova. These losses reflect a recent and widespread decline in the value of publicly listed banks.
The value of Invalda INVL’s investments was positively (0.8 million euros) affected by the successful performance of Litagra, one of the largest agricultural business groups in Lithuania. In these difficult times, the company’s activities, which contribute to the global food supply chain, are even more important.
At the end of the first quarter, Invalda INVL sold the profitable but small business Inservis for 7.2 million euros.
“The current difficult forecasting environment means that there are a number of legitimate uncertainties about the outlook for financial markets, which will ultimately affect the value of investments in the short term. Our team, the largest group of professionals in investment in the Baltics, is working hard to both preserve and add value to the assets entrusted to us.The current environment also opens up a number of new opportunities to invest, transform and grow managed businesses to better respond to the needs of our customers and the changing world”, commented Darius Šulnis, President of Invalda INVL.
Invalda INVL, which generated a net profit of 37.5 million euros last year, paid a dividend of 7.68 million euros to shareholders for 2021, at 0.65 euros per share. On the day of the general meeting on which the decision to pay this dividend was agreed and taken, the dividend yield was 5.2% based on the price of the Invalda INVL share on the stock exchange.
The person authorized to provide additional information is:
Darius Sulnis, President of Invalda INVL
E-mail [email protected]