May 2011 Financial News

Mayberry’s profits jump by 29 per cent

May 06, 2011

MAYBERRY Investments Limited (MIL) has recorded net profits of $74.2 million for the three months ended March 31, 2011, a 29 per cent or $16.6-million increase over the corresponding quarter of 2010.

Gary Peart, CEO, told Caribbean Business Report yesterday that, even with the challenges, the quarterly performance was commendable.

"The quarter was good. Profit before tax was up approximately 40 per cent year over year. Net interest income was higher and administrative and operating expenses were contained," Peart noted. Net interest income and other operating revenue at $214 million, grew by $41.8 million, or 24 per cent year over year, while administrative expenses declined by $4.4 million.

However, a 86 per cent drop in income from fees and commission from $64.3 million to $8.8 million for the quarter under review could have dragged down profitability, but was offset by a dramatic turnaround in gains from foreign exchange.

"Fall in fees and commission was due to less large deals this quarter," Peart explained. "We expect that to change for future quarters."

In the prior year's quarter, MIL saw a $95.7-million loss from foreign exchange movements as the Jamaican dollar continued its revaluation against the benchmark US currency. However, at end March 2011, that loss was reversed and the company saw gains of $2.8 million. Peart pointed to this movement as positively impacting the results.

"The foreign exchange rate has shown signs of stability resulting in no further revaluation of the Jamaican currency," Peart noted.

Peart also noted that the launch of the new investment product, MIL Gold should also provide some improved performance in the coming quarters.

"Our new product MIL Gold is ready and we are rolling it out. The Gold will give better returns to short-term investors when compared with the average repo rates and deposit rates," he said.

A 4.2 per cent decline in cash and cash equivalents for the quarter under review, corresponded to MIL's move to place more assets on its balance sheet as cash used in investing activities increased by $2.4 million. Cash position remains strong, however, with $402.2 million in cash at the end of the period and loan loss provisions at $18 million.


Source:
ALICIA ROACHE roachea@jamaicaobserver
Jamaica Observer
Friday May 06, 2011

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