Net interest income rose by 76% amounting to $367.38 million

Barita Investments continues to post big quarterly net profits with its latest quarterly out-turn for the period ended December 2020, going up by 103 per cent to $1.02 billion.

This is coming from a net profit of $502.97 million booked in December 2019. Profit before tax for the quarter amounted to $1.31 billion, relative to a profit before taxation of $640.66 million in 2019.

Following taxation of $293.37 million, Barita reported net profit of $1.02 billion, coming from the $137.69 million posted for the comparable period in 2019. Earnings per share for the first quarter totalled $0.94 relative to earnings per share of $0.46 in 2019.

Barita stock price closed the trading period on February 15, 2021 at $80.89 with a correspond P/E ratio of 26.80 times. For the quarter, Barita reported $72.72 million for impairment, relative to the $40.96 million reported a year prior.

Barita saw its net interest income rise by 76 per cent amounting to $367.38 million relative to $208.62 million for the comparable quarter in 2019.

Focused deployment of capital

The management reports that, “this increase was driven by focused deployment of our enhanced capital position in our fixed income and credit portfolios, even as overall balance sheet expanded year-over-year”. Dividend Income fell 86 per cent to total $449,000 compared to the $3.22 million earned for the first three months ended December 31, 2019.

Gains on sale of investment rose 165 per cent to $669.36 million coming from $252.14 million reported for the comparable quarter in 2019, while fees and commissions income fell 20 per cent to close at $465.62 million. For the comparable period in 2019 fees and commissions income was $578.73 million.

According to Barita, “The decline in fees and commission income is attributable to lower performance related asset management fees during the quarter versus that of Q1 FY20 due to more challenging conditions in the local financial market”.

Foreign exchange trading and translation amounted to a gain of $485.76 million compared to a gain of $87.48 million recorded in the previous year.

Other income totalled $4.92 million versus $1.38 million in a similar period in 2019. As such, net operating revenue amounted to $1.99 billion relative to $1.13 billion recorded for the comparable period in 2019.

Jump in admin expenses

Administrative expenses for the period amounted to $327.42 million, increasing 32 per cent from $247.41 million in 2019. Staff costs for the quarter rose 38 per cent from $202.54 million booked in 2019 to $279.19 million in 2020.

As at December 31, 2020, total assets amounted $69.94 billion (2019: $45.23 billion), a $24.71 billion improvement as a result of the growth in “Loans Receivables” which increased by 630 per cent to a total of $6.20 billion (2019: $849.19 million) and “Pledged Assets” which rose 216 per cent to $37.62 billion (2019: $11.92 billion).

Shareholders’ equity amounted to $28.50 billion relative to $14.10 billion in 2019 resulting in a book value per share of $34.55 relative to $17.09 in 2019. This increase was fuelled by the injection of additional equity in the group, arising from the $13.5 billion additional public offer and an increase in retained earnings, net of dividends declared during the period.