Durrant Pate/Contributor

Mayberry Group has managed to contain its September 2023 quarterly losses but remains in the red at the end of the combined three quarters from January to September 2023.

Net losses for the three-month period July- September 2023 closed on J$986.1 million, down from the loss of J$1.2 billion reported for the same period in 2022.

For the nine months ended September 2023, Mayberry recorded net loss attributable to shareholders of J$693 million, a whopping 134 per cent or $2.7 billion decline over the corresponding period in 2022.

This performance was primarily attributable to Mayberry recording net unrealised losses on investments in associates at fair value through profit and loss (FVTPL) of J$2.2 billion, or a decline of 154 per cent when compared to the same period in 2022.

These losses were associated with the continuous retreat of the local stock market year to date. Mayberry also recorded a decline in net interest income of J$335.1 million, down 139 per cent over 2022. This resulted in a loss per share (LPS) of J$0.58 compared to an earning per share of J$1.70 in 2022.

Expenses surged by 28%

Total operating expenses for the September quarter under surged by J$98 million or 28 per cent to $443.2 million, when compared to comparable period last year. For the combined three quarters, operating expenses increased by J$104.4 million or 6.5 per cent.

The increase was mainly driven by higher staff costs, which went up by 12 per cent or $67 million, due primarily to inflationary adjustments. Loan loss provisions went down J$132.6 million, due to the related assessment of loans and advances and investment securities.

Mayberry’s share of profit of joint venture increased to J$942.3 million for the nine months ended September 30, 2023, compared to a loss of J$69 million for the comparative period.

Other major financial highlights

Total assets reported as at September 30, 2023, grew to J$57.9 billion, representing a J$6.4 billion or 12.4 per cent increase compared to the comparative period for 2022. Net book value per share closed at J$13.11, a J$0.67 or 4.8 per cent decline over the corresponding period in 2022.

Net interest income for review quarter declined by J$98 million or 119 per cent when compared to 2022. For the nine-month period, net interest expense amounted to J$93.3 million, representing a decline of 139 per cent over the net interest income of $242 million earned for the similar period in 2022.

This result reflects a significant and continuous growth in interest income on margin loans, higher by 68 per cent, or J$523 million year over year and other loan income growing 22 per cent associated with the growth recorded for loans and advances of 23 per cent or J$1.8 billion, when compared to the prior year.

This interest income growth was offset by the interest costs for the Mayberry bond including the non-recurring special discretionary interest paid to bond holders of J$38 million during the first quarter. Net unrealised losses on investments at FVTPL improved by J$437 million to a loss of J$1.9 billion for the
September quarter when compared to 2022.

This performance was driven by increases in the market price of several high-volume stocks in the company’s portfolio. For the nine-month period, net unrealised losses on investments at FVTPL recorded a loss of J$2.1 billion, representing a decline of 150 per cent when compared to last year.

Marked increase in quarterly dividend income

Dividend income for the September quarter surged by 91 per cent to J$295 million when compared to 2022, based on dividends declared by investees. Net foreign exchange gains of J$75 million were higher by J$43 million or 135 per cent related to the relative cambio volumes traded and spreads.

Fees and commission income declined by 28.5 per cent or J$39.7 million to J$99.5 million, resulting from depressed market conditions impacting the brokerage business compared to 2022. Net trading gains amounted to J$29 million, lower by J$2 million or 7.0 per cent for September 2023 with performance attributable to the reduced opportunities based on the prevailing headwinds in the equities and
bond markets due to the sustained higher interest rates.