Total comprehensive income for the March quarter at investment bankers, Mayberry Investments, increased 165 percent to $364 million, compared to $137.6 million in the 2015 quarter. The more investment sensitive number, net profit, was just $94 million compared to $82 million in the corresponding 2015 quarter.
Earnings per share ended at 8 cents, up from 7 cents in 2015, making the stock at $3.40, fully priced based on current market valuation measures. Profit was boosted by $209 million in realised trading gains compared with $53 million in 2015 but suffered from unrealised investment loss of $94 million versus a gain of $12 in 2015.
Income from fees and commissions jumped 204 percent to $38.9 million. Net interest income suffered a reduction of 34 percent or $33.4 million to reach $65 million, dividend income declined from $57 million to $18.6 million and net foreign exchange gains ended at $34 million, down from $40 million.
The decrease in net interest income was as a result of the reduction in the size of the repo portfolio. A general decline in the global bond market due to speculation about US interest rates and changes in the market conditions which impacted the bond prices in the portfolio.
Operating expenses for the period rose 27 percent to $204 million from $161 million for the corresponding period in 2014, “The increase in expense is due to increased costs for consultancy as well as legal and professional services” Gary Peart, Chief Executive Officer stated. Additional provision for credit losses of $7.5 made during the period compared to a write back during 2015 of $5 million contributed to the increase.
The group made investments in four associated companies since July 2015, making Lasco Financial Services, Blue Power Group, Caribbean Producers and Iron Rock Insurance Company associates and contributed $28 million in profit, there was no income from associates in the 2015 period.
At the end of the period stockholders’ equity was $6.6 billion, an increase of $2.3 billion over the corresponding period in 2015. Net book value ended at $5.50 per share and big premium to the last traded price of $3.40 on the Jamaica Stock Exchange.