BIL reports 40% increase in nine months net profit

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.




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