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FMI sees strong growth in finance, invests in real estate, tourism

Despite a drop in earnings in FY2019, Yangon Stock Exchange-listed First Myanmar Investment Public Company Ltd (FMI), said it continues to see potential for long term growth in finance, healthcare, real estate and tourism, the main sectors in which its businesses are involved.

While earnings dropped by almost 42 percent to K14.4 billion for the 12 months ended March 31, 2019 due to a spike in costs incurred to modernise and expand its businesses, FMI nevertheless raked in record revenues of K279.7 billion, which is up 36pc year-on-year.

This was mainly contributed by Yoma Bank, which saw its revenue increase by 36.5pc to K254.5 billion due to a rise in interest income from a growing loan book. Yoma Bank’s agriculture financing program which covers loan facilities and hire-purchase products also saw a steady rise in income.

Meanwhile, Pun Hlaing Siloam Hospitals enjoyed revenue growth of 32.6pc to K24.9 billion, on the back of stronger demand for its ancillary services and an increase in patient volume.

“This year, in addition to focusing on revenue growth, we also realigned and refined our organisation, disposing of non-core and underperforming assets which provided us with the capital and capacity to strengthen our core businesses,” U Tun Tun, chief operating officer of FMI, said in a statement.

During the year, FMI channeled resources into its real estate arm by expanding City Loft, a new division of modern affordable housing situated next to its Star City development in Thanlyin. Meanwhile, Memories Group, its Singapore-listed tourism arm, opened new hotels in Yangon and the Mergui Archipelago.

Notably, healthcare company OUE Lippo Healthcare Ltd (OUELH), which is listed on the secondary board of the Singapore Exchange (SGX), took a stake in Pun Hlaing Siloam Hospitals. OUELH is also a subsidiary of SGX-listed real estate developer OUE.

In May 2019, the International Finance Corporation also converted certain portions of its outstanding convertible loans into a 5pc shareholding interest in Yoma Bank. It was the first time a Myanmar bank has received an investment from abroad, and “strengthens our credibility in both the local and international financial markets,” said U Tun Tun.

Source: Myanmar Times

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