Cost cutting measures implemented by Barita Investments during the last three months of 2013 were not enough to fully offset a sharp decline in interest margins.

The company posted $57.4 million in net profit for its first financial quarter, or 26 per cent less than the $77.6 million it earned in the corresponding period in 2012, as net interest income plunged from $142.9 million in the first quarter of 2013 to $96.8 million in the review quarter.

Barita’s fees and commission income increased by 26 per cent to $23.2 million during the quarter, while foreign exchange trading translated into $35.2 million, or much the same as in the comparative quarter the year before.

However, gain on sale of investment dropped by 69 per cent to $8.1 million in the first quarter ending December 31.

“Our income from trading gains once again suffered from uncertainty and lack of confidence in the international markets,” wrote Rita Humphries-Lewin in her chairperson’s report accompanying the financial statements.

Barita maintained its staff cost at year-earlier levels, or jsut undre $57 million during the quarter, while it managed to cut administrative expenses by 28 per cent, or $18.1 millino to $45.5 million.

“Effectiveness in our cost management exercises were successful as we try to ensure that as much as posssible, costs incurred result from value added activities,” said Humphries-Lewin. “We continue to aggressively manage our costs as we seek to improve the efficiency of our organisation.”

The company’s capital base stood at $1.4 billion at the end of December, and remains in compliance with regulatory requirements.

“We are confident that strategies undertaken during this financial year will continue to preserve and increase our shareholder value,” concluded Humphries-Lewin. “Cost containment will continue to be one of our main areas of focus and we anticipate that new product offerings and improvement in our IT infrastructure will continue to improve our competitiveness in the challenging financial services industry.