Mar 2012 Financial News

Pan Caribbean posts net profits of J$1.7 billion for 2011

Mar 02, 2012

Pan Caribbean Financial Services (PCFS) a subsidiary of Sagicor which is headquartered in New Kingston put in a creditable financial performance for 2011
According to published audited statements for the year ended 31 December, 2011, Pan Caribbean posted total interest income of J$6.130 billion, J$430 million less than the J$6.566 billion registered for the year ended December 31, 2010. While interest income from securities slipped to J$5.136 billion from J$5.591 billion in the prior year, interest income from loans and leases increased marginally to J$992.6 million.

Net interest income increased by 7 per cent to J$2.94 billion up J$193 million over 2010.. According to PCFS's CEO Donovan Perkins, this was primarily due to balance sheet growth. Fees and commission income fell to J$92.4 million compared with J$406 million for 2010. Non interest income grew 25 per cent from J$868 million in 2010 to J$1 billion in 2011.

Fixed Income trading gains, FX Translation gains and Asset Management fees reflected improved results.

Total assets at year-end were J$80.2 billion, up 10 per cent. PCFS's investment portfolio increased by J$1.3 billion or 13 per cent to J$12 billion at the end of 2011, At year-end non performing loans were J$473 million or 5 per cent of the portfolio.

Stockholders'equity increased y J$1.3 billion or 13 per cent to J412 billion at the end of 2011. Again Perkins attributes this to improved after-tax profits of J$1.7 billion, improved securities prices reflected in a J$251 million change in fair value reserves and ordinary dividends paid amounting to J$705 million.

The suppression of operating costs continues to plague corporate Jamaic a and PCFS also saw an escalation here. Operating costs increased by 4 per cent to J$1.71 billion compared to J$1.63 billion for the prior year. Team Member costs rose 10 per cent as a result of annual salary adjustments and incentives and also benefited from a favourable pension adjustment of J$14 million compared to a charge of J$64 million in 2010.

The main highlights for 2011 were:

• Net income of J$1.72 billion, up 13 per cent over prior year

• Earnings per share increased 12 per cent to J$3.12

• Capital to Assets Ratio of 14.9 per cent

• Return on opening equity of 16.2 per cent.

Commenting on the company's performance, Donovan Perkins, President & CEO Speaking with Caribbean Business Report said: "Our team is particularly pleased at this performance. Every line of business contributed to these decent results. Our Treasury, Trading and Asset Management business lines stood out in 2011."

In assessing PanCaribbeanBank's performance, the Group's CEO indicated that "Our commercial bank also had respectable growth and added a record number of new retail customers, along with making inroads into the SME market also." According to Perkins "We plan to build on the momentum through cross-selling and hitting the road more in 2012 to grow the business. The opportunities are there for us and customers are exceptionally happy with our service standards."

The CEO indicated that Pan Caribbean had much to celebrate in 2011 - "For a small company competing against much larger entities, we won an unprecedented five first place awards at the JSE Best Practices function last December. We were also named by Investors Choice as the Company of the Year and our Sigma Optima was the best performing unit trust fund in Jamaica."

"Those awards were a wonderful way to end the year, and our recent Sigma Corporate Run has us off to a good start in 2012, having raised over $ 33 Million for the Chain of Hope's project at Bustamante Hospital. Our entire team, especially our Chairman, is particularly proud of the role we are playing in building our community."

In closing on his plans for 2012, the CEO shared that "Double digit growth remains Agenda Item 1 and we can only achieve this with a Team that enjoys taking proper care of our customers.


Source:
By Al Edwards
Jamaica Observer
Friday March 2, 2012

http://www.jamaicaobserver.com/business/Pan-Caribbean-posts-net-profits-of-J-1-7-billion-for-2011_10940573#ixzz1oG04D3bE