February 15, 2023

Barita Investments Limited (BIL)

Unaudited Financials for the Three Months Ended December 31, 2022

For the three months ended December 31, 2022, Barita Investments Limited (BIL) net interest income decreased by 53% amounting to $220.75 million relative to the $472.69 million for the comparable three months in 2021.

Gains on investment activities rose by 389% to $1.47 billion (2021: $300.79 million).

Fees & Commissions Income increase by 31% to close at $660.84 million (2021: $505.53 million).

Foreign exchange trading and translation gain amounted to $40.41 million compared to a gain of $784.38 million recorded in the previous year.

Other income totalled $28.54 million versus $8.3 million recorded for the similar period in 2021. As such, net operating revenue amounted to $2.42 billion relative to $2.07 billion recorded for the comparable period in 2021.

Operating Expenses for the period totaled to $1.08 billion, increasing 88% from $728.46 million in 2021, the largest of these expenses being Administration expenses of $684.72 million (2021: $364.5 million).

Profit before tax amounted to $1.37 billion relative to a profit before taxation of $1.38 billion in 2021.

Following taxation of $296.94 million (2021: $305.77 million), the company reported net profit of $1.07 billion, a marginal decline of 0.05% from the $1.07 billion reported 12 months earlier.

Total comprehensive income for the three months was $2.09 billion relative to $647.65 million in 2021, this significant increase was a result of an unrealized gain on  FVOCI securities of $1.12 billion in 2022, compared to a loss of $437.41 million in 2021.

The earnings per share for the three months end December 31, 2022 amounted to $0.89 relative to the EPS of $0.89 in 2021. The trailing earnings per share amounted to $3.50. The number of shares used in our calculations amounted to 1,220,388,243 units. BIL stock price closed the trading period on February 15, 2022 at $84.16 with a corresponding P/E of 24.01 times.

Balance Sheet at a glance:

As at December 31, 2022, total assets amounted $113.94 billion (2021: $91.98 billion), a $21.95 billion improvement year over year. The growth was as a result of ‘Pledged assets’ which increased by $22.25 billion to a total of $71.31 billion (2021: $49.06 billion) and ‘Loan Receivables’ which rose by $4.42 billion to $9.58 billion (2021: $5.12 billion).

Shareholders’ Equity amounted to $34.49 billion relative to $36.89 billion reported in 2021 resulting in a book value per share of $28.26 relative to $30.23 booked in 2021.

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