MAYBERRY Investments Limited saw its net profit plummet over the first quarter ending 31st March 2010, catalysed by severe foreign exchange losses.

Mayberry posted net profits of $57.5 million over the period under review, a decline of 57 per cent compared to the corresponding period last year.

Net interest income and other revenues for the period were $172 million compared to $267 million in 2009 — a decrease of $95 million or 36 per cent due primarily to net foreign exchange loss of $96 million. Mayberry, in its CEO’s Commentary accompanying the financial results, blamed the losses on the revaluation of the Jamaican dollar against the US dollar as well as the devaluation of the euro dollar against the US dollar.

“We have recorded increases in most of our revenue areas which is in line with our strategy to diversify and grow our revenue streams; however, these increases were impacted by the level of foreign exchange loss recorded for the quarter,” said Mayberry CEO Gary Peart in the commentry.

Fees and commissions increased by $51.6 million to $64.3 million over the first quarter, more than five times the amount recorded over the corresponding period in 2009. This, Peart said, resulted from the execution of more fee-based transactions, advisory services and the JSE recording more transactions over the period.

“The JSE main index closed at 86,011 points compared to 79,023 points for the corresponding period. We recorded an increase of 396 per cent or $80.5 million in net trading gains on securities, which totalled $101 million for the quarter compared to $20.3 million for the corresponding period,” noted Peart, saying that this signifies a positive indication from the market.

Mayberry also earned, over the quarter under review, $15.3 million through Access Financial Services, in which it has a 49 per cent stake. This represented a 162 per cent increase over the corresponding quarter.

The company’s administrative expenses was $130.7 million for the quarter, a 17 per cent increase over the comparative period in 2009.

Peart said the impact of the Jamaica Debt Exchange on its operations was minimal — less than one per cent of capital — but said that the company will keep abreast of the situation and adjust its strategy accordingly.

“The Government’s debt exchange programme brought a significant shift in rates and has paved the way for single-digit interest rates. The private sector should position itself to take advantage of the lowered cost of funding in this environment, which should lead to a better performance of the economy,” he said.