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.


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