Barita Investments 2017 AGM held on March 23, 2017
Barita Investments closed their 2016 fiscal year to September with profits of $207 million after taxation down from $242 million in 2015 form increased revenues of $1.9 billion up from $1.5 billion in 2015.
Cost grew faster than the increase in income and one off losses from impairment of investments and increased bad debts helped to pressure the bottom line.
The real story, however, is not to be found in the net profit for the year but in the quality of the earnings for the year and more so, that which is reflected in the fourth quarter.
Fees and commission income more than tripled to reach $127 million, while net interest grew sharply from $118 million to $158 million for the September quarter over the levels generated in 2015. The fourth quarter numbers are heralding healthy growth in these areas in 2017. The December quarter results show moderate change to net interest income year over year but is down sharply to a net of $77 million while there was 68 percent jump in fees and commission income to $105 million, as the portfolio under management grew. At the Annual General Meeting held this past week the Finance director Ian McNaughton explained that there was an adjusting entry for interest that relates to a prior period while US dollar investments declined in value during the quarter thus affecting the fee income. “Subsequent to the quarter, values have been normalizing” McNaughton stated.
Barita is set to benefit from appreciation in the
value of the assets of unit trusts, especially in the equity-linked unit that will boost fee income. The company will also benefit from increased value to its equity portfolio that should grow sharply, allowing the company to realise investment gains that should add to profits. The equity unit trust fund should also enjoy healthy inflows from new investors as local stocks record gains and encourage new investors to use the unit trust as a viable vehicle for their investment funds.The stock that is currently listed in IC Insider.com’s TOP 10 stocks, is currently under some selling pressure and last traded at $6.90 on the Jamaica Stock Exchange.
