Barita Investments Limited has reported increased net profits amounting to $2 billion for its third quarter ended June 30, almost $1 billion more than the previous quarter and a 40 per cent increase when compared to a similar period in the previous year.

The financial entity said these improved earnings were achieved despite the disruptions caused by the COVID-19 pandemic which has significantly impacted global economies and financial markets.

Barita vice-president for asset management and research, Ramon Small-Ferguson, attributed the company’s positive financial performance to the commitment and expertise of its hard-working team.

“This time of uncertainty has truly brought out the creativity of our team and that has been at the heart of the resilient performance of the company. One of our main focuses has been talent acquisition and retention. Here we have seen the team’s ideas and experience really shine through, allowing us to deliver to the shareholders what we have to date,” he said.

The company said that the period’s results largely reflect growth across several core business lines to include investment banking, trading, and asset management at the rapidly expanding securities firm.

Net operating revenues climbed to $3.78 billion for the nine months, 34 per cent higher when compared to the $2.82 billion in revenue a year earlier.

“This was driven by higher net interest income. Secondly, higher fee and commission income, and gains on investment activities which, year on year, totalled $1.1 billion. With this in mind, the company has approved an interim dividend of $2.216 per stock unit payable on October 7 to shareholders on record at the close of business on September 22, 2020,” a company release stated.

“The onset of the pandemic has brought on a lot of changes in dividend policy. Two years ago or so the company communicated to its shareholders that it would be pursuing a generous dividend policy of up to 80 per cent of net profits after tax, and we have seen profitability of approximately $2 billion year to date. We have seen it reasonable at this time to share dividends to our ordinary shareholders which is the first dividend we would have declared year to date,” said Small-Ferguson

The group’s non-interest income — which represents income derived from activities such as fees, commissions, foreign exchange gains, and dividends — was said to have also accounted for 78 per cent of the total revenue of the group. This, the company believes, signals an improved resilience of the group to earn profit in an environment of low interest rate spreads.

As at June 30 the investment firm had total assets of $52.07 billion, up $25.99 billion from the year earlier.

“We think that the company is well positioned from a capital perspective, and so paying the dividends won’t undermine the capital position of the company,” Small-Ferguson said.

“We also have very good liquidity, so paying the dividend won’t undermine the strength of the business either; but importantly, we think that at a time when many investors are looking to their portfolio as a means of a secondary source of income due to the crisis, this is a reasonable reward to our shareholders,” he added.vv