November 15, 2021
Net interest income for the year improved 74% to $1.53 billion relative to $882.59 million in 2020. While for the quarter Net Interest Income ended at $380.25 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 $1.06 million compared to the $8.68 million earned in 2020. Gains on sale of investment rose to $1.57 billion (2020: $1.36 billion).
Foreign exchange trading and translation amounted to a gain of $1.85 billion compared to a gain of $978.45 million recorded for the previous year.
Fees & commissions income rose by 70%, to close at $3.13 billion (2020: $1.84 billion).
Notably, BIL reported other income of $32.83 million for the year relative to $45.51 million in 2020. As such, net operating revenue amounted to $8.12 billion relative to $5.12 billion recorded for 2020. Net operating revenue for the fourth quarter amounted to $1.43 billion in contrast to $1.34 billion booked for the fourth quarter of 2020.
Administrative expenses for the year amounted to $1.59 billion, increasing 43% from $1.11 billion in 2020. Staff costs for the year rose 49% from $859.21 million booked in 2020 to $1.28 billion for the period under review. BIL reported an ‘Impairment/ Expected Credit Loss (ECL)’ of $202.79 million (2020: $41.28 million). Total expenses for the year rose 38% to close at $3.08 billion compared to $2.01 billion recorded in 2020.
As such, profit before tax amounted to $5.09 billion relative to a profit before taxation of $3.11 billion in 2020.
Following taxation of $982.92 million (2020: $347.44 million), the Company reported net profit of $4.11 billion, relative to the profit of $2.76 billion booked in 2020. Net profit for the quarter amounted to $441.77 million, 41% below the $755.14 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 $4.02 billion (2020: $2.19 billion).
Earnings per Share (EPS) for the fourth quarter totalled $0.36 relative to $0.62 in 2020. EPS for the year amounted to $3.37 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 November 12, 2021 at $92.56 with a corresponding P/E of 27.48 times.
Balance Sheet at a glance:
As at September 30, 2021, total assets amounted $90.11 billion (2020: $70.69 billion), a 27% 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 $36.46 billion relative to $27.48 billion in 2020 resulting in a book value per share of $44.20 relative to $33.31 in 2020.
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