Jamaica-based Barita Investments Limited earned net profits of JM$2.1 billion for the first six months ending March 31, 2020 — a 104 per cent increase over JM$1.0 billion reported in the comparable period a year earlier.
The company achieved this feat after generating JM$1.8 billion or 79 per cent growth in net operating revenue, which ended the period at JM$4.0 billion.
At the same time, the company reported that net profit for the second quarter of FY21 was JM$532 million more or 104 per cent rise over 2020 results. Earning per share, therefore, rose by 53 per cent rise relative to the same period, from JM$1.24 at March 2020 to $1.90.
Barita, which, according to its website, has 22,000 clients and over JM$90 billion in funds under management, offers portfolio management services in equities trading, fixed income securities, foreign currency trading, asset management, and unit trusts fund management.
Company Chairman Mark Myers said in the latest financial report that Barita “continues to deploy capital efficiently and effectively within the context of a dynamic economic and investment landscape,” which continues to feel the impact of COVID-19.
While capital allocation in the current environment is still challenging, he said the company continues to “apply robust risk management to our investment ‘decisioning’”.
The group’s revenue base over the six months included net interest income of JM$741million, which climbed by JM$201 million or 37 per cent year-over-year.
Non-interest income grew 92 per cent or JM$1.6 billion to JM$3.3 billion when compared with half year 2020.
In addition, fee and commission income rose by 79 per cent to JM$1.4 billion, relative to JM$760 million earned inthe corresponding period in 2020.
Myers noted that Barita had completed several capital markets deals during the six-month period. Among them was the landmark additional public offering for Derrimon Trading Company Limited, which was the largest fund-raiser in the history of the Junior Market of the Jamaica Stock Exchange, attracting more than JM$7 billion in subscriptions.
Meanwhile, the investment and asset management group registered foreign exchange trading and translation gains of JM$1.1 billion in the half-year FY21, which outperformed JM$107 million recorded in the same period the year before.
Notwithstanding, Barita’s credit losses grew from JM$94 on March 31, 2020, to JM$101 million. The chairman commented that this was a function of the significant balance sheet expansion, in particular, the increased credit portfolio.
Barita’s total assets jumped to JM$78.7 billion as at March 2021, up by JM$30.0 billion or 62 per cent increase over half year 2020, due mainly to a JM$22.5-billion growth in pledged assets throughout the period and JM$6.2-billion growth in loan assets.
Total liabilities grew by 46 per cent or $15.8 billion to $50.1 billion when compared with the half year ended March 2020.
The company’s equity rose by 99 per cent or JM$14.3 billion to close the period at JM$28.7 billion. This, management noted, was largely a result of an injection of additional equity in the group, which arose from the JM$13.5-billion APO; and an increase in retained earnings, net of dividends, declared during the period.