Barita Investments, now controlled by the Cornerstone Group, has seen a significant uptick in its net profits.

For the financial year ended September 2020, the investment house posted an annual net profit of J$2.7 billion, a J$1 billion increase on the J$1.7 billion posted  for 2019’s yearend net profit figure.

Looking at the September quarter, Barita booked J$726 million in net profits, $J$440 million more than it did for the same period last year.

Earning per share (EPS) for the year ended September 30, 2020 came in at J$3.29, an increase on the J$2.42 for year-end 2019.

The Group also saw a bump in its operating revenue which rose by 29 per cent to J$5.1 billion for this year. The lion’s share of this was derived from non-interest income of $4.3 billion, a 28 per cent increase on the $3.3 billion last year. Barita attributes this non-interest income performance to a rise in fees, commission income and foreign exchange trading.

Turning to net interest income, here Barita posted $881 million, $230 million more than it did in 2019.This reflects the growth of the Group’s balance sheet and its focus on fixed income and credit portfolios.

Barita has become a bigger and more effective investment house and correspondingly this has seen an increase in operating expenses.

Staff costs went up by 52 per cent to $843 million with administrative expenses rising by 32 per cent year-on-year. Non-interest expenses jumped by 32 per cent to $2 billion.

Total assets for the year increased by 72 per cent coming in at $70.5 billion. Barita’s chairman, Mark Myers, puts this down to growth in reverse repurchase agreements, cash, and pledged assets.

Shareholder equity rose by 103 per cent year-on-year with Barita reporting a figure of $27.7 billion. This in the main is due to the Group’s additional public offering (APO) which brought in $13.5 billion.

In September, Trinidad’s First Citizens Investment Services acquired a five per cent stake in Barita. First Citizens has US$3.2 billion in assets under management.

Barita upsized its APO by an additional 88,866,610 new ordinary shares to its initial offer of 173,733,000 ordinary shares priced between $49 and $52 per share. The APO follows two rights issues that raised $10 billion in equity capital last year.

Under Paul Simpson’s leadership, Barita has undergone a huge marketing drive which has resonated with the public. The funds raised will be used to extend its business lines, upgrade its technology  and it may well be looking for a footprint in other Caribbean countries.  It has already acquired stakes in investment house Proven (5.9 per cent) and entertainment and fashion Group Pulse, headed by Kingsley Cooper (five per cent).

Barita is looking to open two additional branches, one in New Kingston and the other in Montego Bay.