Barita reports improved profit

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.
In the final quarter, profit before tax amounted to $134.8 million and after taking a larger tax charge than usual, ended at $70 million but that is up from a loss of $90 million in pretax profit and a loss of $64 million after tax in the September 2014 quarter.
The results came from revenues comprising interest income of $891 million, a fall from $1 billion in 2014 but with a big final quarter with $275 million, 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 for the year from $395 million in 2014 but the net take ended with 29.7 percent margin compared with 30 percent in 2014 and with net interest income of $118 million in the final quarter with a margin of 43 percent. Ian McNaughton, Finance Director indicates that approximately 40 percent of the amount relates to prior quarters. that would result in the final quarters net interest income being around $70 million.
The pick up in the stock trading and growth in unit trust will result in increased fee income and capital gains from their holding of stocks with a value at $496 million at September.
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 resulting in a PE of 7.8 but the first quarter results should be out by the February 5 based on when they were released last year. IC Insider is forecasting earnings around 75 cents per share for 2016 with the stock at a PE of 6 based on these forecasted earnings.