Barita Investments profit climbs 61.6 per cent

Barita Investments Limited (BIL) made net profit of $2.76 billion for the financial year ended September 2020, up 61.6 per cent over the $1.71 billion earned in 2019.

Net operating revenue for the year ended was $5.21 billion, up 76.39 per cent from $3.98 billion the year before.

Basic earnings per share was $3.33 per stock unit, up from $2.42 at year end 2019.

Company shares last traded at $83.97 on December 23, 2020.

BIL is a licensed securities dealer and has primary dealer whose services include investment banking, funds management, loans and cambio/foreign exchange trading.

In August 2018, Cornerstone Investments Holdings Limited, now Cornerstone Financial Holdings Limited, acquired 75 per cent of the equity in Barita Investments Limited.

The company, which had market capitalisation of around $48 billion prior to an additional public offer this September, has seen capitalisation grow to $90 billion
Shares last traded at $83.97 on December 23, 2020.

For the year ended net interest income was $882.59 million, up from $650.99 million the year before. Dividend income declined to $8.677, down from $30.67 million

Increased revenue included foreign exchange trading and translation gains of $978.45 million, up from $353.50 million at September 2019.

Added to this were gain on sale of investments of $1.41 billion, this compared to $1.87 billion in 2019.

Cash and cash equivalents at year-end was $5.27 billion, up from $716.1 million in 2019.

Total assets climbed to $70.69 billion, up 57.99 per cent over $41 billion at September 2019.

In September 2020 the company made an additional public offer (APO) of common shares which was upsized to pull in $13.5 billion in new funding.

The offer ranged between $49 per unit for small investors, through $49.75 for hotel workers, farmers and civil servants, to $52 per share for Cornerstone Investors, Barita clients and investors in Key.

Proceeds of the APO, the prospectus said, will be used to increase the company’s investment banking underwriting capacity and to upgrade the technology platform to a global platform.

The company is also seeking to seed new managed funds and expand the product offerings. It is additionally seeking retail footprint expansion, locally and regionally.