Donovan Perkins: We have a good mergers and acquisitions background. - Ricardo Makyn/Staff Photographer
PAN CARIBBEAN Financial Services Limited (PCFS) reported record profits for the fifth consecutive year as net income grew 23 per cent to $1.03 billion. In addition to crossing over the billion-dollar mark in profits, the company's capital at year-end was a very healthy $6.1 billion.
Net interest income declined marginally as interest rates fell, but profits were driven by other income which rose strongly in 2005 from $434 million to $751 million as fixed income trading gains dominated non-interest income. Pan Caribbean's new stock brokerage arm in its first year generated $48 million in fees. Non-interest expenses grew 12 per cent in 2005, increasing to $691 million with staff costs rising 45 per cent to $400 million.
ASSETS DECLINED
Total assets declined marginally to $40 billion at year-end. Noticeably, investments fell six per cent, while loans increased 31 per cent.
Its Sigma funds Optima and Solution came out on top again in 2005, contributing handsomely to PCFS's performance. During the year, Pan Caribbean divested 75 per cent of Manufacturers Credit and Information Services, its advance card company, to Jamaica National.
Commenting on the performance, the CEO of PCFS, Donovan Perkins, said, "The results reflect contributions from every area capital markets, corporate banking, asset management and trust. Our entire team has performed admirably and the support
that these units get from Technology and Operations really allows for excellent service delivery." He indicated that while 2006 would have its challenges, Pan Caribbean expected to continue its growth trajectory in an intensely competitive market.
LIKELY GROWTH
In looking at where growth is likely to come from, its chairman Richard Byles felt that "new products and services chequing accounts, expanded stock brokerage,
a broader offering of unit trust products will deepen client relationships and improve Pan Caribbean's value proposition".
"Right now we are a bit introverted, but growth could also come from possibly Caribbean or local transactions," noted Mr Perkins. "You know we have a good mergers and acquisitions background."
