Ian Allen/Staff Photographer
Richard Byles introducing the new Pan Caribbean Financial Services at the Terra Nova Hotel last year.
Ashford W. Meikle, Staff Reporter
The chairman of Pan Caribbean Financial Services Limited (PCFS), Richard O. Byles, has praised the banking conglomerate for its successful mergers.
"I am most satisfied that we were able to execute a major merger and emerge from the fire with a unified and strengthened team of professionals, a loyal [and] consolidated customer base and an enhanced, single brand," said Mr. Byles while speaking at PCFS's annual general meeting on Friday at the Terra Nova Hotel on Waterloo Road.
To emphasise the success of Pan Caribbean's merger, he informed the audience "the global experience with mergers has been frightful only one out of every five mergers delivers on promised success." Mr. Byles commended chief executive officer, Donavan Perkins "and his team ... for the outstanding job they have done in ensuring the successful merger of PCFS and Manufacturers Sigma Merchant Bank (MSMB)."
Pan Caribbean Financial Services Limited is the result of the January 2004 merger of Pan Caribbean and Manufacturers Investments Limited, then the parent company of MSMB. In January this year, Life of Jamaica (LoJ) acquired 43 per cent of PCFS, bringing its total shareholding to 51 per cent. Four months later Sagicor - LOJ's parent company - acquired another 36 per cent of Pan Caribbean Financial Services Limited.
According to Mr. Byles "this new shareholding structure makes the combined Sagicor, LOJ and PCFS a most formidable financial group, not just in Jamaica, but also in the wider Caribbean." He gave his assurance that the major shareholders will adhere "to the highest standards of good corporate governance [and] prudent and professional management of the three separate entities."
In his presentation, Mr. Perkins highlighted the PCFS performance for the past year. Reflecting that "2004 was
definitely a great year for our shareholders," he noted:
The merger with Manufacturers Sigma added $1.5 billion capital to its balance sheet along with $23 billion in assets.
The acquisition of Lets Invest-ments, which contributed an additional $3 billion to the
balance sheet.
The purchasing the eleventh seat
on the Jamaica Stock Exchange.
Sigma Optima, its high performing unit trust, gave unit holders a 103 per cent return. The fund was ranked number one last year.
The 146 per cent increase in
net profit after taxation, to $842 million
A 120 per cent increase in assets, to $40 billion.
Market capitalisation jumped from $2 billion to $18 billion.
Commenting on the exceptional performance of the company's unit trust he said, "We're going to work very hard to maintain our position in 2005."
As has been the case in previous years, the directors did not recommend a dividend payment for shareholders. Mr. Byles explained that, "We've resisted paying dividends ... we have been accumulating capital to make the company strong." He explained that the policy of not paying dividends is not "borne of stinginess ... it's borne of prudent management and a decision to grow the business."
He also said "the dividend policy of Pan Caribbean and Sagicor [might] become more beneficial to shareholders... The board will be looking at it."
