Gary Peart joined Mayberry Investments Limited in May 2005 as Chief Executive Officer after building his resume and developing his management techniques throughout the financial industry over the course of 15 years. During this time he gained experience in almost every business line, including corporate finance, equity, fixed income and treasury management, all of which prepared him for his current role as the leader of one of Jamaica’s most well-known financial entities.

According to Chairman Christopher Berry the beginning of 2008 was “good”, the end was “disastrous” with the onset of the financial crisis. However, Berry said that he anticipated that 2009 will be “tough”. Still, he said that the Company would be moving in full‐gear with the aim of earning profits.

In its 23rd year of operation, Mayberry posted Net Profit of $469.5 million, a 26% improvement over 2007. Net Interest Income and Other Revenues for 2008 declined by 4.9% year over year to $942.5 million, as the aggressive interest rate environment negatively impacted by the unrealized mark to market losses of $64 million, largely on the bond trading and equity portfolios, compared with unrealized gains of $34 million at the end of 2007.

Notwithstanding this 4.9% decline in Net Interest Income, the company was able to improve the previous year’s results in such areas as net interest income (up 15%), net foreign exchange gains (up 355%), and dividend income (up 10%).
Shareholders’ Equity declined by 27%, closing the year at $2.4 billion, $0.911 million less than Y/E 2007. The decline in shareholders’ equity was a result of the unrealized losses in the available-for-sale portfolio of securities which was previously positive at Y/E 2007.

EPS for 2008 was $0.39 compared with a 2007 EPS of $0.31. 2008 Book Value per share was $2.04 compared with 2007 Book Value per share of $2.80.

The company has reassured investors that its capital base remains healthy and in fact still exceeds the 10% FSC regulatory requirement, despite its capital having fallen from 57% of total risk weighted assets at the end of 2007 to 43% as at Dec 31 2008.
Gary Peart, speaking at Mayberry Investments’ 23rd Annual General Meeting (AGM), said that Commission & Fee Income saw good growth and that the Company booked a large foreign exchange gain. Net interest income also rose as the Company was able to take advantage of higher interest rates. He said in terms of expenses, the provisions for credit losses was the main contributor to the increase given the overall economic environment and that salary‐related expenses did not see a significant increase. Peart also stated that the Company remained above the key regulatory benchmarks during the period. That is, it stood above the Capital/Total Assets, Core Dealer Earnings and Capital/Total Risk‐Weighted Assets ratios. He added that during 2008, Mayberry revamped its marketing strategy and that the Company is efficiently using its marketing budget.

Historically, adverse movements in the local stock market have negatively impacted the Company’s bottom line. During 2007 for example, Mayberry augmented its business lines and steadied its net profit through the addition of pension-fund investment and management services.

Looking towards the future, Peart mentioned that the Company is keeping its eyes on four key areas: the effects of the global crisis, innovative product offerings, expansion of brokerage services and a further downturn in the local economy. He said that the Company will launch new services including fixed income portfolio management. It will also expand into advisory services and sees earnings potential in the establishment of a financial advisory department which will provide services that were previously extended to Mayberry’s corporate clients free of charge. Its expansion into advisory services will also include guidance on mergers and acquisitions and enlisting companies on the JSE Junior Stock Exchange.
During 2009 Mayberry will give special attention to lowering costs and the disciplined use of its capital, relying on sound advice and expertise.BM