November 07, 2018
For the year ended September 30, 2018, Barita Invested Limited’s (BIL) interest income declined 10% to $1.02 billion relative to $1.13 billion for the previous year. Interest expense also declined by 29% to close at $599.66 million compared to $847.44 million in 2017. As a result, net interest income for the year increased by 48% to $424.40 million relative to $286.87 million in 2017. Net interest income for the fourth quarter amounted to $117.44 million compared to $68.70 million in 2017. Management noted, “we recorded significant gains in most of our key revenue drivers, namely fee & commission income, foreign exchange gains, and dividend income.”
Dividend Income rose 54% for the year to total $31.78 million compared to the $20.59 million earned in 2017. Gains on sale of investment declined by 47%, to $136.45 million (2017: $259.32 million). Income from Fees & Commissions however rose by 11%, to close at $527.03 million (2017: $475.73 million). Management noted fees and commission income, “continues to benefit from growth in our managed funds”.
Foreign exchange trading and translation gains climbed to a total of $187.95 million for the period, compared to $45.48 million recorded for the previous year. BIL reported other losses of $7.18 million versus an income of $22 million reported in 2017. As such, net operating revenue amounted to $1.30 billion, 17% above last year’s $1.11 billion. Net operating income for the fourth quarter improved 61% to close at $458.69 million relative to $284.17 million in 2017.
Staff costs for the year amounted to $394.14 million, increasing 16% from $340.58 million in 2017. Administration expenses costs also climbed 10% to total $370.65 million (2017: $337.50 million), due to increases in asset tax, Barita Education Foundation expenses and bad debt provisioning”.
Notably, BIL reported no Impairment of available-for-sale investment relative to the $100.16 million reported in 2017.
As such, the company booked profit before taxation of $535.63 million, a 61% increase on the $331.74 million documented in 2017. Profit before tax for the quarter amounted to $235.43 million compared to $85.36 million in 2017. Administrative expenses reflected, “increases in asset tax
Consequently, the company reported net profits of $373.97 million, an increase of 84% relative to the $203.02 million booked in 2017; this followed taxation of $161.67 million (2017: $128.72 million). net profit for the fourth quarter jumped to $193.40 million versus $46.64 million for the same quarter of 2017.
Total comprehensive income for the year amounted to $736.21 million compared to $171.82 million twelve months earlier.
Earnings per Share for the year totalled $0.84 relative to $0.46 in 2017. The EPS for the fourth quarter amounted to $0.43 compared to $0.10 for the prior year. The number of shares used in our calculations amounted to 445,876,824 units. Notably, BIL closed the trading period on November 07, 2018 at a price of $19.12.
BIL noted, “we anticipate that the Jamaican economy will continue to be viable for investors in a landscape underpinned by local dollar volatility and interest rates at historic lows. As such we position ourselves to exploit as much of the opportunities to be derived as possible, while working tirelessly to satisfy the group we serve.”
Balance Sheet at a glance:
As at September 30, 2018, total assets amounted $19 billion (2017: $15.85 billion), a $1.08 billion or a 20% improvement. This increase was primarily attributable to ‘Pledged Assets’ which increased by $1.98 billion to total $9.88 billion (2017: $7.90 billion).
Shareholders’ Equity amounted to $3.26 billion relative to $2.78 billion in 2017 resulting in a book value per share of $7.30 relative to $6.23 in 2017.
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