PERKINS
FOR THE 12 month period ended December 31, 2004 Pan Caribbean Financial Services (PCFS) reported net profit of $842 million, a 146 per cent increase over the prior year's results of $342 million. This saw a subsequent increase in its earnings per share (EPS) from $1.34 in 2003 to $1.84 at December 2004.
The recent amalgamations and mergers of PCFS significantly and positively affected these impressive results.
Specifically, the results include ten months of operations of Manufacturers Investments Limited (MIL) that merged with Pan Caribbean in March last year, and five months of the Lets Investment Portfolio (LIL) that was acquired in August 2004.
Improving net interest margins and realised trading gains from a larger portfolio were also primary profit catalysts. Non-interest income rose 105 per cent to $479 million, driven primarily by securities and foreign exchange trading activities and asset management fees.
GROWTH IN ASSETS
The company's foreign ex-change translation gains made a drastic decline from $125 million to $14 million in 2004.
Quite notable, as well, is the $22 billion growth in assets to $40 billion and the improvement in credit quality with a reduction of 50 per cent in its non-performing loans.
CONFIDENT
In January 2005 Life of Jamaica acquired an additional 43 per cent of Pan Caribbean Financial Services, increasing its holding to 51 per cent. President and CEO of Pan Caribbean, Donovan Perkins, is confident that this new alliance will bear much fruit.
"Pan Caribbean remains focused on completing operational, technology and training projects intended to improve efficiencies and service standards in 2005. The acquisition of majority shares by Life of Jamaica is only expected to strengthen our current operations," Mr. Perkins said.
He went on to say that Pan Caribbean's staff and management team have been instrumental in carving out a niche in the local financial services market, and it is expected that Pan Caribbean will continue to grow and support projects which are necessary to create an even stronger Pan Caribbean.
Last year PCFS became a seat holder of the Jamaica Stock Exchange and is currently upgrading its infrastructure to provide online banking and stockbrokerage services.
