Mayberry Returns to Profitability for the 6 Month Period Ending June 2021 Relative to the Net Loss Last Year

• For the 6-month period ending June 2021, Mayberry Investments reported a net profit of $288.93Mn (EPS: $0.24), which is a significant improvement over the net loss of $962.01Mn incurred in the prior year. This came on the back of a $1.74Bn rise in net operating income. 
• Although fees and commission, dividend income and net foreign exchange gains fell by 20.9%, 20.9% and 16.6%, respectively, the primary contributor of this increase in net operating income was an unrealized gain on investment of $508.72Mn, relative to a loss $1.19Bn in 2020. The gains reflect in the year on year rise in the prices of stocks held by the subsidiary company, Mayberry Jamaican Equities. Net interest income (68.3%) and net trading gains ($85.99Mn) also rose to support the bottom-line. 
• These increases in income were enough to offset the $61.27Mn (8.5%) expansion in operating expenses which was driven by higher expenditure, namely computer licensing fees, management fees, sales and marketing, donations, insurance and IT consulting fees. 
• Mayberry Investments’ operating performance should continue to improve in the coming quarters, as increases in private consumption, investor confidence and corporate earnings bolstered by more relaxed COVID-19 restriction measures, support improvements in equity prices and therefore unrealized gains from its equity investments. Nevertheless, the current rise in cases, which could lead to the reemergence of the restrictions poses a risk to the recovery, especially with the emergence of new strains of the virus. 
• Mayberry Investment’s stock price has depreciated by 5.8% since the start of the year to close at $5.65 on Thursday. It currently trades at a price to book of 0.76x, which is below the main market financial sector average of 1.92x.

(Source: Company Financials & NCBCM Research)