Profit rise and fall at Mayberry

Mayberry crossed 40m C&W shares.

Profit at Mayberry Investments climbed 27 percent to $62 million, after tax for the quarter to September this year, up from $49 million in 2016 with earnings per share of just 5 cents. For the nine months to September, profit dropped to $66 million from $320 million in 2016.
While the profit performance for the year to date is mixed, the investment banker focus is the more robust comprehensive income, than the traditional profit outcome, but total comprehensive income slipped 22 percent, to $300 million, from $385 million, for the September quarter of 2016, due to a decline in the prices of some stocks held. Not factored into comprehensive income is the increased value of associated company share prices.
Net interest income climbed 28 percent to $30 million. Fees and commissions jumped 168 percent to $113 million for the quarter, compared to $42 million for the corresponding quarter in 2016. Fee income grew by increased transactions within the quarter and from Initial Public Offering whilst the increase in Net Interest Income was due to lower cost of funds. Dividend income declined 17 percent to $29 million, a reduction of $6 million compared to the similar period in 2016.

Gary Peart, Chief Executive of Mayberry Investments.

Net trading Gains fell to $68 million from $117 million for the corresponding period in 2016, a reduction of $49 million or 42 percent, due to decreased trading volumes for the quarter.
Net foreign exchange gains fell sharply to a mere $4 million, down from $58 million in 2016. Unrealized gains on investment revaluation amounted to $11 million or 37.6 percent less than the comparative period in 2016.

Operating expenses decreased by $34 million or 12.28 percent when compared to the corresponding quarter in 2016, with staff cost falling $21 million and investment impairment fell $29 million to zero. Profits from associates, increased $34 million or 199 percent, over the same quarter in 2016
Results for the nine months for 2017 is not as robust as in 2016. Net interest income is down from $135 million to only $52 million as interest cost rose by $68 million and income fell. Fees and commission income rose sharply from $142 million to $253 million, net trading gains fell from $385 million to $152 million and foreign exchange trading gains fell from $179 million to $57 million and unrealized investment gains fell to $44 million from $199 million.

The final quarter of the year is off to a robust start with a number of stocks Mayberry holds climbing these include NCB Financial, Caribbean Cement Cable & wireless to name a few. Longer term the company’s equity portfolio should rise sharply as all indicators point to a possible 60 percent rise in value of main market stocks over the next year.
Mayberry ended the quarter with total assets of $22 billion and shareholders’ equity of $7.9 billion, up from $7.24 billion at the end of 2016. Net book value stands at $6.54. The company’s stock closed trading on the Jamaica Stock Exchange at $4.30, on Wednesday.

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