Barita quarterly profit up 382%
Barita Investments Limited posted on Wednesday last a profit of $503 million for the three months ended December 31, 2019, an increase of 382 per cent when compared with the previous corresponding period.
In its unaudited financial statements for the period under review, Barita Chairman Mark Myers credited the positive financial performance to the continued effects of the overhaul of the company’s business strategy, to include increased capitalisation and the addition of new business lines in the 2019 financial year.
Net profit for the quarter under review translated to earnings per share of $0.61, relative to the $0.17 recorded in the previous corresponding period.
Meanwhile, the company’s net interest income recorded an $85-million increase for the period under review to $208.6 million. This increase, according to Myers, was mainly influenced by the increase in the company’s balance sheet assets, due to the continued deployment of the capital raised and the rebalancing of its on-book portfolio.
Barita’s non-interest income grew by $652.8 million to $922.9 million relative to $270.1 million reported the previous corresponding period. This growth was primarily driven by an increase in fees and commission income which rose to $578.7 million, a 265 per cent increase due to the company’s continued activity in the investment banking business line and the growth in the asset management business.
Non-interest income as a percentage of net revenues rose to 81.6 per cent from 68.6 per cent in the corresponding period for the 2019 financial year, reflecting the continued effects of the group’s revenue diversification strategies.
Myers further added that throughout the quarter ending in December 2019, local investment markets continued to show the effects of strong investor, consumer and business confidence; stable and predictable monetary policy; and careful fiscal management.
Local equity markets continued to benefit from heavy activity, with new initial public offerings attracting significant capital from the investing public.
— Abbion Robinson
