For the nine months ended June 30, 2020, Barita Investments Limited (BIL) recorded a 91% increase in net interest income, amounting to $836.55 million relative to $436.90 million for the comparable period in 2019. Net interest income for the quarter closed at $296.46 million, 64% above the $180.48 million reported for the prior year’s corresponding quarter.
Dividend income declined 61% to total $8.21 million compared to the $20.89 million earned for the nine months ended June 30, 2019. Gains on sale of investment decreased by 10%, to $1.11 billion (2019: $1.24 billion).
Foreign exchange trading and translation amounted to a gain of $427.73 million compared to a gain of $88.59 million recorded in the previous year’s period.
Fees & commissions income rose by 93%, to close at $1.39 billion (2019: $721.60 million).
Notably, the Company reported other income of $2.60 million for the period relative to $312.19 million booked in 2019. As such, net operating revenue amounted to $3.78 billion relative to $2.82 billion recorded for the comparable period in 2019. Net operating revenue for the third quarter amounted to $1.51 billion in contrast to $1.65 billion booked for the third quarter of 2019.
Administrative Expenses for the period amounted to $735.24 million, reflecting an increase of 113% from $345.81 million in 2019. Staff costs for the period rose 38% from $402.27 million booked in 2019 to $554.78 million. BIL recorded an impairment/ expected credit loss of $13.72 million (2019: 80.73 million) for the nine-month period. As a result, total expenses for the period rose 57% to close at $1.30 billion compared to $828.81 million recorded in 2019. While for the quarter, total expenses declined 5% to $345.31 million, relative to $365.20 booked last year same time.
As such, profit before tax amounted to $2.47 billion relative to a profit before taxation of $1.99 million booked for the nine months period of 2019. Profit before tax for third quarter closed at $1.17 billion versus $1.29 billion booked for 2019 comparable period.
Following taxation of $469.89 million (2019: $559.33 million), the company reported net profit of $2 billion, relative to the profit of $1.43 billion booked in 2019. Net profit for the quarter amounted to $990.86 million, 9% above the $910.98 million for the corresponding quarter of 2019.
Earnings per Share (EPS) for the third quarter totalled $1.20 relative to $1.10 in 2019. EPS for the nine months period amounted to $2.43 compared to $1.73 recorded for the prior year’s period. The trailing earnings per share amounted to $2.77. The number of shares used in our calculations amounted to 825,003,263 units. BIL stock price closed the trading period on August 10, 2020 at $58.29.
Balance Sheet at a glance:
As at June 30, 2020, total assets amounted $52.07 billion (2019: $31.08 billion), a $20.99 billion improvement as a result of the growth in “Pledged Assets” which increased by 158% to a total of $30.79 billion (2019: $11.92 billion). ‘Receivables’ also contributed to the increase in the asset base with a 642% increase to close at $3.83 billion (2019: $517.02 million).
Shareholders’ Equity amounted to $15.24 billion relative to $9.27 billion in 2019 resulting in a book value per share of $18.47 relative to $11.23 in 2019.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein