Barita net profit rises 59%

Wednesday, February 01, 2012

Barita Investments Limited posted 59 per cent higher net profit for the three months to December 31, 2011, when compared to the corresponding period in 2010.

The company saw its bottom line grow from $32 million to $51 million as total revenues grew by 53 per cent to $197 million, outpacing the 28 per cent rise in expenses to $109 million for the quarter.

Barita said that stabilisation in interest rates led to relatively flat interest income but "optimisation of our balance sheet have seen our net interest income increase by $39million or 36 per cent (to $147 million) over prior year".

The firm also saw its non-interest income grow by $21 million or 95 per cent to $43 million.

"Continued improvements in our asset and equity trading activities have seen our revenues to Dec 31 amounting to $22million and $25million respectively; approximately double the performance prior year," said Rita Humphries-Lewin in her chairman's statement accompany the company's financials.

Continued issues in Europe, which has led to the Euro currency decreasing in value, significanly contributed to a $7 million translation loss accounted for in the quarter under review.

The rise in operational costs to December 31, 2011, when compared to the same period in 2010, reflected increases in Barita's advertising and public relations activities aimed at improving the financial institutions visibility, while increased staff costs was associated with "initiatives in human resource development and capacity building".

"We continue to aggressively manage our costs as we seek to improve the efficiency of our organisation," added Humphries-Lewin.

Barita's asset base increasd by $1.2 billion or nine per cent over the prior year, from $12.9 billion to $14 billion, while its liabilities grew by $810 million or seven per cent to $12.4 billion, resulting in increased shareholder's equity by approximately $400 million to $1.8 billion.