Durrant Pate/ Contributor

Investment and brokerage company, Mayberry Investments is capitally very strong, exceeding regulatory capital requirements based on its latest financial returns for the September quarter.

The Gary Peart-led company’s regulatory capital base continues to be robust and compliant with regulatory benchmarks. As at September 30, 2024, the capital-to-risk-weighted asset ratio of 17.7% exceeds the established minimum of 10% set by the Financial Services Commission (FSC). 

In addition, Mayberry’s Tier One Capital is 99% of its overall capital base and exceeds the regulatory minimum of 50% established by the FSC. The maturities of assets and liabilities and the ability to replace at an acceptable cost, interest-bearing liabilities, as they mature are important factors in assessing the liquidity of the company and exposure to changes in interest rates and exchange rates. 

The company’s policy is to hold a high proportion of liquid assets to cover withdrawals at unexpected levels of demand. 

Losses to date cut to $231.7 million

While Mayberry Investments has been manoeuvring the challenging business environment capably, it has managed to cut its net losses to $231.7 million for the nine months ended September 30, 2024, from the loss of $510 million recorded for the corresponding period in 2023. This performance was primarily attributable to higher operating income by $461.5 million or 52% due mainly to an increase in net interest income by $322 million or 129%. 

Total operating expenses for the nine-month period increased by $199 million or 15% compared to the comparative period in 2023. This resulted in a loss per share (LPS) of $0.19 (2023: (LPS) $0.42).  

For the quarter July to September 2024, Mayberry made a net profit of $36.7 million, compared to a loss of $83.2 million for the same period last year. Total operating income increased by $241 million or 72.5% to $573 million compared to $332 million for the corresponding quarter in 2023. Total operating expenses increased by 34% for the September quarter compared to the similar quarter in 2023. 

Other financial highlights

This resulted in an earnings per share (EPS) of $0.03 (2023: (LPS) $0.07). Net Interest Income for the combined three quarters grew by $322 million or 129% to $572.6 million. 

The results reflect significant growth in interest income from margin loans and bonds which grew by 45% and 16% respectively year over year related to creditable growth in the respective asset portfolios. Investment securities grew by 55% and loans and advances grew by 5% year over year.  

Higher interest costs of $120 million or 9.5% year over year, reflect the growth in securities sold under repurchase agreements by 13% and average borrowings over the period to fund operations. For the September 30, 2024 quarter, Mayberry reported consulting fees & commission income of $347 million an increase of $248 million or 251% over the comparative period. 

Significant contributors to the quarter were: 

• Brokerage fees increased by $89 million or 255% on account of increased earnings from selling fees equity and corporate advisory transactions during the period. 
• Equity commission was higher by $75 million or 418% based on increased volumes and value of equity trades over the comparative period in 2023.
• Fixed income fees were higher by $16 million or 126%. 

Total assets as at September 30, 2024, declined by 6.4% from the $40.4 billion reported as at December 31, 2023. The $2.6 billion decrease was mainly attributable to a reduction in balances due from related companies by $5 billion or 63% attributable to the repayment of debt. This was offset by an increase in investment securities of $2 billion or 55% over the period as the company reinvested available liquidity. Total liabilities decreased by $2.4 billion or 7.2% over December 2023. 

This reduction was mainly due to a 15% decrease in loans payable over the period reflecting net repayments in addition to a 7% or $1.5 billion reduction in client balances held when compared to December 2023. Mayberry’s capital base remains strong with total shareholders’ equity valued at $6.4 billion This resulted in a net book value per share of $5.34 (Dec. 2023: $5.48).