Mayberry reports shrinking revenue lines

Mayberry Investments Limited Group recorded a net profit of $332 million for the July to September 2020 quarter compared to $442 million for the corresponding period last year.

Chief executive officer, Gary Peart, said this performance was a result of reduced fees and commissions, lower dividend income and foreign exchange gains in addition to lower unrealised gains on investment revaluation.

He said this was counterbalanced by improved net interest income, higher trading gains and higher other income.
For the nine months ended September 2020, net loss of $955.7 million was reported compared to net profit of $539.3 million for the 2019 comparative period.

During the quarter ended net interest income of $67 million increased by $38.7 million or 137.2 per cent Q3 2020 over Q3 2019.
This resulted from reduced expenses on the Repo books, lower commercial paper interest and reduced finance costs.

Chief executive officer Gary Peart (Photo: lascojamaica.com)

Overall net trading gains were higher by $251.2 million, attributable to the trading of shares during the period. Net trading gains of $27 million were recorded for Q3 2019.

Other income of $98.5 million for July to September 2020 increased by $96.4 million when compared to the same period in 2019 resulting from recovery of bad debts during the period.

Revenues which declined include dividend income of $45.1 million for Q3 2020 which was lower by $68.4 million over Q3 2019.

Fees and commission income of $56.1 million for July to September 2020 were lower by 57.1 per cent over the corresponding period in 2019, primarily due to the following: Equity commission decreased by $32.2 million; Selling fees debt was lower by $12.5 million and IPO Selling fees income did not materialise for the quarter due to delayed projects in the pipeline.

Corporate advisory fees of $14.9 million experienced a $14.6 million shortfall and loan processing fees declined by $14.9 million.

Net foreign exchange gains of $61.7 million in Q3 2020 decreased by $54.8 million due mainly to realized and unrealised foreign exchange losses booked during the quarter, despite higher spreads from the cambio business which recorded revenues of $143.3 million, $42 million higher than the corresponding quarter in 2019.

Unrealised gain on investment revaluation of J$140 million for Q3 2020 declined by $369.7 million. This resulted from the revaluation of all equities classified as fair value through profit or loss (FVPL), on the subsidiary company, Mayberry Jamaican Equities Limited (MJE).

Total comprehensive loss for Q3 2020 amounted to $164.8 million, compared to a loss of $293.5 million for the corresponding quarter of 2019.
This was attributable to a decrease in financial reserves, following price reductions for stocks held in the current equity portfolio.

For the accumulated nine-month period ended September 2020, Mayberry Group recorded a total comprehensive loss of $7 billion compared to total comprehensive income of $5.7 billion for the corresponding period in 2019.

Peart noted that the global and local financial markets continue to experience the negative impact of the COVID-19, and as the financial environment continues to evolve, the organisation will continue to assess the financial landscape.

Meanwhile, the CEO said the Group rolled has out two initiatives in the quarter from its digitisation project namely, MIL IPO online application and a customer help desk. “This will allow for a seamless customer experience,” he stated.