Mayberry loss widens to $2.2 billion in first quarter

Securities dealer Mayberry Group Ltd posted a net loss of $2.2 billion for the first quarter ended March 2026, about one-third worse than a year earlier, as continued equity market volatility hammered the investment firm's portfolio valuations and pushed interest costs sharply higher.

"The quarter presented a difficult operating environment, and the group's results reflect those headwinds and the underlying progress being made," Group Chief Executive Gary Peart said in the quarterly financials.

He said the group continued to diversify its income streams to offset market pressure, within what he described as a broader strategic programme of reducing balance sheet risk, broadening the revenue base, and building a more durable earnings foundation.

"Growth in consulting fees, dividend income, and foreign exchange gains partially cushioned the quarter," Peart said.

The Jamaica Stock Exchange (JSE)-listed group, which operates across securities dealing, portfolio management, foreign exchange, and lending, said the largest single drag on its results was $1.5 billion in net unrealised losses on investments in associates measured at fair value, a figure broadly unchanged from the same quarter in 2025. It is called ‘unrealised’ because the loss only exists on paper. No cash has actually left the company. If the share prices recover before Mayberry sells, the loss disappears. Also in the quarter, the group recorded a swing from net interest income of $57.1 million in the first quarter of 2025 to net interest expense of $392.5 million, further deepened the loss, driven by “lower yields” on structured notes and higher financing costs on corporate papers.

Loss per share widened to $0.98 from $0.40 a year earlier. Capital attributable to stockholders of the company fell to $10.8 billion from $12.1 billion at December 31, 2025, and $15.1 billion in March 2025.

Total assets were valued at $58.6 billion, a decline of 3.1 per cent, or $1.9 billion, compared to December 2025, primarily due to reductions in investment securities, investments in associates, and promissory notes. This was moderated by higher cash resources and reverse repurchase agreements, the group said. Loans and other receivables increased by one-quarter, or $2.9 billion, driven by continued growth in loan products.

The results come against a backdrop of improving equity market conditions that could benefit the group in the second quarter. The JSE Combined Index gained 8.8 per cent year to date to 356,699 points, according to JSE data, outpacing some US indices over the same period. The Nasdaq Composite rose 11.2 per cent year to date, the S&P 500 gained 7.3 per cent, and the Dow Jones Industrial Average advanced 3.2 per cent, according to Google Finance.

"Management is implementing appropriate portfolio risk reviews and adjustments, and expects the group's strategic positioning to support performance throughout 2026," Peart said.

business@gleanerjm.com