Mayberry Investments Ltd recorded a net profit of $49 million, according to information available on its operating performance for the three months period which ended September 30.
According to CEO Gary Peart, the company recorded a net profit of $49 million, as well as $89 million in realised equity gains recorded in its retained profits as adopted under the Accounting Standards.
For the corresponding quarter 2015, Mayberry recorded net profit of $3.5 million and realised equity gain of $19 million.
Peart said that, during the period, the company recorded mixed revenue performance as it continues to focus on maintaining a diversified revenue stream.
Compared to the corresponding period, increases were recorded in foreign exchange gains of $24 million or 70 per cent, and bond trading gains of $40 million or 52 per cent. These increases were counterbalanced by reductions in net interest income of $56 million, or 70 per cent. The decrease in net interest income was as a result of the reduction in the size of its repo portfolio from $2.9 billion in June 2016 to approximately $2.1 billion in September 2016.
Operating expenses for the period were $279 million, compared to $208 million for the corresponding period, an increase of $71 million or 34 per cent.
The increase in expense is due to services denominated in foreign currency, provisions for credit losses and impairment of investments.
Highlighting its operating performance for the three months period ended September 30, 2016, Mayberry noted that it has made several investments in associated companies since July 2015.
Peart said that for the three months ended September 30, 2016, Mayberry’s share of associates’ profit was $17 million. The group made four associated investments since July 2015: — Lasco Financial Services Ltd, Blue Power Group Ltd, Caribbean Producers (Jamaica) Ltd, and Iron Rock Insurance Company Ltd.
“The book value of these investments at the end of the quarter was $1.273 billion and the market value was $2.051 billion, an increase of $778 million or 61 per cent, which is not recorded in our balance sheet. Adjusting for the increase, the book value per share would be $6.77.”
In relation to regulatory capital, Mayberry said that its capital base remained in good standing. “Our capital to risk weighted asset ratio complies with the established minimum and meets the benchmark set by the FSC.
“Our tier one capital is 100 per cent of the overall capital of the company and exceeds the minimum of 50 per cent established by the FSC.
Mayberry Investments Ltd, together with its subsidiaries, operates as a licensed securities dealer in Jamaica.
Its activities comprise dealing in securities, portfolio management, investment advisory services, operating foreign exchange cambio, managing funds on behalf of clients, and administrative and investment management services for pension plans.
The company’s investment advisory services include securities trading on the Jamaican, the United States’, and the United Kingdom’s stock and bond markets; portfolio planning and management; risk management; retirement planning; pension fund management; and investment banking services.