BIL reports 83% increase in nine months net profit

August 16, 2021

For the nine months ended June 30, 2021, Barita Investments Limited (BIL) recorded a 38% increase in net interest income, amounting to $1.15 billion relative to $836.55 million for the comparable period in 2020. Net interest income for the quarter closed at $412.37 million, 39% above the $296.46 million reported for the prior year’s corresponding quarter.

Dividend income declined 38% to total $877,000 compared to the $8.21 million earned for the nine months ended June 30, 2020. Gains on sale of investment decreased by 9%, to $1 billion (2020: $1.11 billion).

Foreign exchange trading and translation amounted to a gain of $1.78 billion compared to a gain of $427.73 million recorded in the previous year’s period.

Fees & commissions income rose by 95%, to close at $2.72 billion (2020: $1.39 billion).

Notably, the Company reported other income of $26.57 million for the period relative to $2.60 million booked in 2020. As such, net operating revenue amounted to $6.69 billion relative to $3.78 billion recorded for the comparable period in 2020. Net operating revenue for the third quarter amounted to $2.64 billion in contrast to $1.51 billion booked for the third quarter of 2020.

Administrative Expenses for the period amounted to $1.36 billion, reflecting an increase of 86% from $735.24 million in 2020. Staff costs for the period rose 68% from $554.78 million booked in 2020 to $939.91 million. BIL recorded an impairment/ expected credit loss of $137.69 million (2020: $13.72 million) for the nine-month period. As a result, total expenses for the period rose 87% to close at $2.43 billion compared to $1.30 billion recorded in 2020. While for the quarter, total expenses rose to $959.12 million, relative to $345.31 booked last year same time.

As such, profit before tax amounted to $4.30 billion relative to a profit before taxation of $2.47 billion booked for the nine months period of 2020. Profit before tax for third quarter closed at $1.73 billion versus $1.17 billion booked for 2020 comparable period.

Following taxation of $628.41 million (2020: $469.89 million), the company reported net profit of $3.67 billion, relative to the profit of $2 billion booked in 2020. Net profit for the quarter amounted to $1.61 million, 62% above the $990.86 million for the corresponding quarter of 2020.

Earnings per Share (EPS) for the third quarter totalled $1.48 relative to $0.91 in 2020. EPS for the nine months period amounted to $3.38 compared to $1.85 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 1,085,603,093 units. BIL stock price closed the trading period on August 13, 2021 at $83.00 with a corresponding P/E of 20.37 times.


Balance Sheet at a glance:

As at June 30, 2021, total assets amounted $84.20 billion (2020: $52.07 billion), a $32.13 billion improvement as a result of the growth in “Pledged Assets” which increased by 69% to a total of $51.97 billion (2020: $30.79 billion).

Shareholders’ Equity amounted to $30.26 billion relative to $15.24 billion in 2020 resulting in a book value per share of $27.87 relative to $14.04 in 2020.


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