July 06, 2020
Mr. Ramon Small-Ferguson, VP-Asset Management & Research, stated that, “though it has been just a year since the acquisition by Cornerstone Investment Holdings Limited, we have started to transform the business. We have seen a record-breaking performance across several different measures of performance. Total operating income increased by 205% for the 2019 financial year which was complimented by an improvement in efficiency. Net profit after tax consequently grew 371% over FY18.” Year to date, Mr. Ramon Small-Ferguson shared that, “we have continued to change the game and have seen a record-breaking performance for the first six months.” Net profit increased to $1.01 billion, a 96% increase when compared to $516.71 million documented twelve months earlier.
He further added that there were significant accounting issues that impacted the Company in FY2019:
- “IFRS 9, Financial Instruments: The impact on the group resulted in a restatement in opening retained earnings and fair value reserves of $435.0 million and $437.1 million, respectively. The 2019 results include $75.1 million due to ECL provisions and $81.7 million recorded as fair value gains in other comprehensive income.
- IFRS 15, Revenue from Contracts with Customers: Framework for determining whether, how much and when revenue is recognized. There was no impact on the group for revenues from contracts with customers.
- IFRIC 22, Foreign Currency Transactions an Advance Consideration: Clarifies which exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. There was no impact on the group for revenues from contracts with customers.”
Ms. Barclay noted that, “over the last year, we invested in two new lines of business, Investment Banking (Fundraising and Advisory Services) and Wealth Management (available for both Corporate entities and individuals).” Notably, Mr. Ramon Small-Ferguson stated that, “the investment banking segment generated about $300 million in revenue for the company only being in effect for about 10 months of the financial year. This is a key area of focus for us going forward.”
Ms. Barclay also highlighted Barita’s key strategies and pillars:
- Talent acquisition: to ensure the best there is in the business
- Risk Management: to ensure the best strategy in the industry
- Financial Performance
In addition, the Company’s achievements in 2019 were highlighted:
- Investment Banking:
- $9.7 billion in Deals
- Fee income of about $300 million
- Wealth Division was added in the last financial year
- Product Development:
- Structured Notes
- Core Business Growth:
- There was a 31% year over year growth in Funds under Management to $39.4 billion
- Social Media Domination:
- Over 18,000 followers
- 80% engagement
- +70% leads converted
- Top Performing Unit Trust Fund
- Capital Growth Fund continues to outperform benchmark
- Funds raised:
- Raised over $9.2 billion in additional equity which is essential to the Company’s transformational growth strategy.
Moreover, looking ahead for the 2020/2021 financial year, BIL plans to change the game by:
- Opening atleast two new locations; Knutsford Boulevard, New Kingston and in Montego Bay.
- These locations will include digital interactions
- Digital Engagement-
- Now able to open accounts electronically
- Ability to apply for IPO’s electronically in short order
- Information Technology
- Frictionless Processes
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