Barita Investments Limited (BIL):
For the year ended September 30, 2017:-
Interest income grew by 17% during the twelve-month period, amounting to $1.49 billion relative to $1.26 billion for the comparable period in 2016. Interest expense also rose by 33% to close at $1.19 billion compared to $898.37 million in 2016. As a result, net interest income declined by 21% to $291 million relative to $366.05 million in 2016. BIL has attributed the performance in the year to declining interest rates. For the fourth quarter, the company reported a 57% decline in net interest income to $68.70 million (2016: $158.34 million).
Dividend Income fell 19% to total $20.59 million compared to the $25.55 million earned in 2016. Gains on sale of investment grew by 41%, to $251.97 million (2016: $179.28 million). Income from Fees & Commissions rose by 37%, to close at $470.07 million (2016: $343.55 million) this increase was due to “an increase in funds under management.”
Foreign exchange trading and translation gains declined by 59% to a total of $39.20 million for the period, compared to $96.39 million recorded in the previous year. Other Income amounted to $15.23 million, up 130% from $6.61 million reported for the comparable period in 2016.
Administrative Expenses for the period amounted to $340.94 million, increasing 5% from $324.28 million in 2016. Staff costs climbed 1% to total $342.78 million (2016: $340.49 million).
Notably, BIL reported Impairment of available-for-sale investment of $81.46 million (2016: $4.7 million). No Impairment of investment in associated company was reported this year relative to $6.92 million in 2016.
Consequently, the company reported net profits of $171.56 million, a decline relative to the $207.22 million booked in 2016; this followed taxation of $151.32 million (2016: $133.86 million). Net Profits for the quarter amounted to $46.64 million (2016: $121.51 million), a 62% decline.
Earnings per Share for the year ended September 30, 2017, totaled $0.385 relative to $0.465 in 2016. The EPS for the fourth quarter amounted to $0.10 compared to $0.27 cents for the corresponding period in 2016. The number of shares used in our calculations amounted to 445,001,824 units. The company closed the at $8.30 as at the end of trading on November 14, 2017.
Balance Sheet at a glance:
As at September 30, 2017, total assets amounted $16.21 billion (2016: $14.77 billion), a $1.44 billion improvement mainly due to a growth in ‘Pledged Assets’ which increased by 25% to a total of $8.03 billion (2016: $6.44 billion).
Shareholders’ Equity amounted to $3.22 billion relative to $2.49 billion in 2017 resulting in a book value per share of $7.23 relative to $5.59 in 2016. This was mainly due to $572.46 million increase in Fair value reserve to total $1.07 billion relative to $500.55 million in 2016. Retained earnings also increased 13% to total $1.09 billion relative to the $967.49 million reported in 2016.
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