May 16, 2024

Barita Investments Limited (BIL) for the six months ended March 31, 2024, reported net interest income decreased by 21% to $286.14 million compared to $360.23 million for the six months ended Marh 31, 2023. The company booked net interest income of $139.00 million for the second quarter versus $139.48 million reported for the similar quarter of 2023.

Fees and Commission Income for the six months amounted to $2.04 billion (2023: $1.80 billion).

Foreign Exchange Trading and Translation Loss for the six months amounted to $7.26 million (2023: Gain of $58.24 million).

Gain on Sale of Investments for the six months amounted to $2.57 billion (2023: $3.26 billion).

Other income for the six months amounted to $94.05 million (2023: $55.84 million).

Net Operating Revenue for the six-month period amounted to $4.98 billion (2023: $5.53 billion). BIL highlighted, “the decline is largely the result of a lower contribution from the Alternative Investment business line year-over-year, specifically reduced returns from our real estate exposures.”

Staff Costs increased by 4% to close at $877.12 million (2023: $842.58 million), while Administration expense increased by 9% from $1.47 billion in 2023 to $1.60 billion in the period under review. Expected credit loss for the six months amounted to $153.71 million, a 20% increase relative to $128.08 million reported in 2023.

Total Expenses for the six months amounted to $2.33 billion, a 7% increase relative to $2.18 billion reported in 2023. Total Expenses for the second quarter amounted to $1.63 billion (2023: $1.10 billion). Share of results of associated company totalled $59.83 million a 19% increase from the corresponding period last year. (2023: $50.25 million).

Profit Before Taxation for the six months amounted to $2.71 billion, a 20% decline relative to $3.40 billion reported in 2023. Profit Before Taxation for the second quarter amounted to $2.05 billion (2023: $2.03 billion).

Taxation for the six months was $805.31 million (2023: $822.70 million). Net Profit for the six months amounted to $1.91 billion, a 26% decrease from the $2.58 billion reported in 2023. For the second quarter, Net Profit was $1.43 billion (2023: $1.51 billion).

Consequently, Earnings Per Share for the six months amounted to $1.56 (2023: EPS: $2.11), while Earnings Per Share for the quarter totaled $1.17 (2023: EPS: $1.24). The twelve-month trailing EPS was $3.19, and the number of shares used in these calculations was 1,220,388,243.

Notably, BIL’s stock price closed the trading period on May 16, 2024, at a price of $72.11 with a corresponding P/E ratio of 22.60x.

Balance Sheet Highlights

The company’s assets totalled $134.27 billion (2023: $120.07 billion). This was mainly attributed to a 20% uptick in ‘pledged assets’ closing at $89.82 billion.

Shareholder’s equity was $35.60 billion (2023: $36.11 billion), representing a book value per share of $29.17 (2023: $29.59).

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