BIL reports 45% increase in nine months net profit

Date: August 15, 2018

Barita Invested Limited’s (BIL) interest income declined 11% for the nine months ended June 30, 2018, to $738.32 million relative to $832.02 million for the comparable period in 2017. Interest expense also declined by 29% to close at $431.36 million compared to $610.19 million in 2017. As a result, net interest income for the period increased by 38% to $306.96 million relative to $221.83 million in 2017. While for the third quarter, the company booked $117.64 million in net interest income relative to $75.88 million recorded the prior year, a 55% increase.

Dividend Income declined 9% for the period to total $14.97 million compared to the $16.49 million earned in 2017. Gains on sale of investment also declined by 41%, to $111.59 million (2017: $190.25 million). Income from Fees & Commissions however rose by 7%, to close at $364.38 million (2017: $339.67 million).

Foreign exchange trading and translation gains climbed to a total of $42.96 million for the period, compared to $27.29 million recorded in the previous year. Other Income however declined 89%, amounting to $871,000 down from $7.89 million reported for the comparable period in 2017.

Administrative Expenses for the period amounted to $270.40 million, increasing 7% from $251.61 million in 2017. Staff costs also climbed 7% to total $271.12 million (2016: $254.29 million).

Notably, BIL reported no Impairment of available-for-sale investment relative to the $60 million reported in 2017.

The Company booked profit before taxation of $119.64 million, a 6% increase on the $112.60 million booked in 2017.

Consequently, the company reported net profits of $180.56 million, an increase of 45% relative to the $124.92 million booked in 2017; this followed taxation of $119.64 million (2016: $112.60 million). While for the third quarter, BIL reported net profit of $131.19 million relative to $66.79 million reported in 2017, a 96% increase.

Earnings per Share for the nine ended June 30, 2018 totalled $0.40 relative to $0.28 in 2017. The EPS for the third quarter amounted to $0.29 compared to $0.15 for the corresponding period in 2017. The twelve months EPS amounts to $0.58 where the number of shares used in our calculations amounted to 445,876,824 units. Notably, BIL closed the trading period on August 14, 2017 at a price of $9.02.

BIL noted, “As the lower interest rate environment and a foreign exchange market underpinned with fluctuations continue to challenge us as industry players, we persist in seeking opportunities in that enhance value for you.”

Balance Sheet at a glance:

As at June, 2018, total assets amounted $17.17 billion (2017: $15.97 billion), a $1.20 billion or an 8% improvement. This increase was primarily attributable to ‘Securities purchased under resale agreements’ which increased by $1.34 billion to total $3.87 billion (2017: $2.52 billion).

Shareholders’ Equity amounted to $3.22 billion relative to $3.15 billion in 2017 resulting in a book value per share of $7.23 relative to $7.08 in 2017.

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.

2018-08-15T17:37:17-05:00