Brokerage house Barita Investments released half-year results showing profit of $130 million or 29 cents per share versus $105 million in 2014, the improvement came in the second quarter with profit of $84 million, or 19 cents per share, up from $48 million, fuelled by a big jump in investment gains, mostly from disposal of government of Jamaica securities.
Net interest income fell in the quarter as interest cost declined more slowly than the fall in income. For the quarter revenues climbed to 398 million from only $333 million in 2014 while operating expenses rose from $115 million to $128 million or 11 percent. Interest cost fell from $171 million to $151 million but interest income fell faster from $260 million down to $204 million, for a fall of $55 million thus squeezing net interest income from $88 million to $53 million.
Karl Lewin at the launch of Barita’s newest unit trust funds
Revenues from our non-interest income for the six months were above prior year with $309 million compared to $141 million with fees and commission income being 88 percent above prior year at $79 million with significant improvements coming from the revenues of the Barita Unit Trusts Management Company. Additionally, trading gains improved by 813 percent at $179 million compared to $21 million in the prior year, due to gains from sales of government of Jamaica bonds that enjoyed gains as Jamaican bonds started to attract renewed interest. Depreciation of the Jamaican Dollar and trading gains amounted to $42 million year to date down from $72 million in 2014.
“Operational costs for the 6 months period to March increased by 14 percent when compared to the same period last year. Over the same period, staff costs increased by 12 percent, triggered primarily by additional human resources and remuneration adjustments,” the company reported.
Administrative costs were 16 percent higher for the same period last year; the main contributors being our financial support of the Education Foundation and client support expenses.
Looking forward, earnings look set to reach at least 50 cents per share for the year and could be more, depending on the continued buoyancy in the stock market that should help lift commission income from trading for clients, increased stock market prices will increase the asset base of the equity lined unity trusts and generate more fee income. The revaluation in the Jamaican dollar in to March has been reversed thus restoring gains in this area. The decline experienced in interest rate spread may slow but that is unclear at this stage with rates on BOJ Certificate of deposits having fallen and Treasury bill rates continuing to decline.
The quarter ended with equity of $1.86 billion and total assets of $13.37 billion. The stock which is listed on the Jamaica Stock Exchange and last traded at $2.50 up from $1.95 prior to the release of the results.
[…] Barita Investments released the long delayed 2015 audited results to September today with profits of $242 million or 55 cents per share, up from $66 million in 2014. The results came from revenues comprising interest income of $891 million, with a fall from $1 billion in 2014 and other income amounting to $640 million of which gain on sale of investments accounted for $346 million, but fees and commission jumped 67 percent to $171 million. Net interest income fell to $265 million from $395 million in 2014 but the net take ended with 29.7 percent margin compared with 30 percent in 2014. Total assets amounted to $13 billion virtually the same as in 2014. the stock did not trade on Monday but last traded at $4.28. […]