BIL reports 47% increase in year end net profit

November 15, 2021

Net interest income for the year improved 75% to $1.54 billion relative to $882.59 million in 2020. While for the quarter, Net Interest Income ended at $388.33 million (2020: $46.04 million). Management noted that, “this result emanated from our continued focus throughout the financial year on expanding the Group’s credit and fixed income portfolios, coupled with a 32% YoY rise in repo liabilities. NII accounted for 19% of net operating revenue in FY21 compared to 17% in FY20.”

Dividend income fell 88% to total $1.05 million compared to the $8.68 million earned in 2020. Gains on sale of investment rose to $1.58 billion (2020: $1.41 billion).

Foreign exchange trading and translation amounted to a gain of $1.59 billion compared to a gain of $978.45 million recorded for the previous year.

Fees & commissions income rose by 85%, to close at $3.38 billion (2020: $1.83 billion).

Notably, BIL reported other income of $27.62 million for the year relative to $103.92 million in 2020. As such, net operating revenue amounted to $8.12 billion relative to $5.21 billion recorded for 2020. Net operating revenue for the fourth quarter amounted to $1.43 billion in contrast to $1.44 billion booked for the fourth quarter of 2020.

Administrative expenses for the year amounted to $1.79 billion, increasing 56% from $1.15 billion in 2020. Staff costs for the year rose 48% from $846.09 million booked in 2020 to $1.25 billion for the period under review. BIL reported an ‘Impairment/ Expected Credit Loss (ECL)’ of $6.45 million (2020: $110.79 million). Total expenses for the year rose 45% to close at $3.05 billion compared to $2.11 billion recorded in 2020.

Share of results from associate amounted to $57.14 million for the year ended September  30, 2021.

As such, profit before tax amounted to $5.12 billion relative to a profit before taxation of $3.11 billion in 2020.

Following taxation of $1.06 billion (2020: $347.44 million), the Company reported net profit of $4.06 billion, relative to the profit of $2.76 billion booked in 2020. Net profit for the quarter amounted to $389.84 million, 48% below the $755.25 million for the corresponding quarter of 2020.  BIL noted, “the outrun for the year was the collective result of the tireless efforts of the teams at Barita and Cornerstone with critical and unwavering support provided by the Boards of Directors and shareholders of both companies. The transformational growth that the organization has undergone over the last three years has been enabled by the dedication and commitment of every single Barita team member.”

Total comprehensive income for the year amounted to $3.87 billion (2020: $2.19 billion).

Earnings per Share (EPS) for the fourth quarter totalled $0.32 relative to $0.62 in 2020.  EPS for the year amounted to $3.33 compared to $2.26 recorded for the prior year. The number of shares used in our calculations amounted to 1,220,388,243 units. BIL stock price closed the trading period on December 28, 2021 at $91.08 with a corresponding P/E of 27.39 times.

Balance Sheet at a glance:

As at September 30, 2021, total assets amounted $90.21 billion (2020: $70.69 billion), a 28% improvement as a result of the growth in “Pledged Assets” which increased by 42% to a total of $50.29 billion (2020: $35.43 billion).

Shareholders’ Equity amounted to $36.25 billion relative to $27.48 billion in 2020 resulting in a book value per share of $43.93 relative to $33.31 in 2020.



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.