Barita Investments Reports Rise in YTD Net Profit

• For the 6 month period ending March 2021, Barita Investments reported a net profit of $2.06Bn (EPS: $1.90), which was 103.7% (or $1.05Bn) higher than the outturn for the same period in the prior year.
• The growth was largely influenced by a $1.03Bn (or 965.3%) increase in FX trading and translation gains, as well as a 79.3% (or $603.07Mn) and 37.1% (or $200.58Mn) increase in fee & commission and net interest income, respectively.
• An expansion of the scale of its foreign exchange trading operations through a combination of greater customer engagement and increased transactional activity drove the increase in FX trading and translation Meanwhile, fee & commission income grew due to an increase in fees generated by its investment banking and asset management business lines relative to the prior year.
• During the second quarter of its financial year, the company completed several capital market deals, including the Derrimon Trading Company Limited APO, which was oversubscribed, attracting more than $7.00Bn in subscriptions.
• A rise in staff ($247.36Mn) and administrative ($260.490Mn) costs as the company continued to invest in critical pillars of its transformational growth strategy including the acquisition and retention of human capital, and customer acquisition initiatives partially tempered the overall impact of higher operating revenues on its bottom-line.
• Barita’s stock price has appreciated by 5.0% since the start of the year and currently trades at a P/E of 21.6x earnings when compared to the Main Market Financial Sector average of 19.8x earnings. 

(Source: Barita’s Financials)