Date: February 5, 2019
For the first quarter ended December 31, 2018, Barita Investments Liminted (BIL) Interest income declined marginally by 1% during the three month period, amounting to $253.06 million relative to $254.95 million for the comparable period in 2017. Interest expense also declined to close at $129.46 million compared to $174.17 million in 2017. As a result, net interest income increased by 53% to $123.61 million relative to $80.78 million in 2017.
Dividend Income rose 90% to total $4.06 million compared to the $2.13 million earned for the first three months ended December 31, 2017. Gains on sale of investment increased significantly by 353%, to $64.33 million (2017: $14.21 million), while Fees & Commissions Income rose by 35%, to close at $158.55. million (2017: $117.11 million). BIL noted the growth in gain on sale of investment, “benefitted significantly from the increased investment banking functionality.” Fees and commission income according to management, “continues to benefit in growth of funds under management, however the benefits of the strengthening of the investment banking capabilities of the organisation has resulted in revenues of $33 million being accounted for in additional fee income.”
Foreign exchange trading and translation amounted to a loss of $156.03 million compared to a loss of $54.60 million recorded in the previous year. BIL indicated, “of this amount, the foreign exchange trading (cambio) component reported a gain of $23.5 million 217.1% above prior year, however translation losses of $179.5 million, our most significant translation loss of any review quarter, outweighed cambio trading and a portion of our other operating revenue streams.” Notably, BIL reported Fair value adjustment for financial assets of $198.43 million for the first quarter relative to nil in 2017. As such, net operating revenue amounted to $393.74 million relative to $161.08 million recorded for the comparable period in 2017.
Administrative Expenses for the period amounted to $83.16 million, increasing 7% from $77.82 million in 2017. Staff costs for the quarter rose 42% from $88.57 million book in 2017 to $125.37 million. Management noted the increase in staff costs was as a result from, “staff restructuring activities and increases which caused this expense category to close the quarter at $125.4 million.”
BIL reported an Impairment loss available for sale investment of $6.21 million for the quarter relative to nil in 2017.
Profit before tax amounted to $191.43 million relative to a loss before taxation of $5.31 million in 2017.
Following taxation of $83 million (2017:$33.46 million), the company reported net profit of $108.43 million, relative to the loss of $38.77 million booked in 2017.
Earnings per Share for the first quarter ended December 31, 2018 totalled $0.24 relative to a loss per share of $0.09 in 2017. The trailing earnings per share amounted to $1.14. The number of shares used in our calculations amounted to 445,876,824 units. BIL stock price closed the trading period on February 4, 2019 at $51.53.
Balance Sheet at a glance:
As at December 30, 2018, total assets amounted $18.91 billion (2017: $16.45 billion), a $2.46 billion improvement as a result of the growth in “Marketable Securities” which increased by 75% to a total of $5.26 billion (2017: $3.00 billion).
Shareholders’ Equity amounted to $3.05 billion relative to $2.95 billion in 2017 resulting in a book value per share of $6.85 relative to $6.63 in 2017.
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