PanCaribbean’s Q3 Profits up 24%

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The Directors of PanCaribbean are pleased to report Net Profit of $1,338 Million for the nine-month period ended September 2011. This represents an increase of $256 Million over the $1,082 Million reported for the comparative period. Earnings per share year to-date jumped 23% from $1.97 to $2.43.

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For the nine-month period ended September 2011, Pan Caribbean Financial Services Limited (PCFS) reported consolidated profit of $1,338 Million up 24%, compared to $1,082 Million in the corresponding period last year. Year-to-date, net interest income increased by 7% to $2,157 Million from $2,008 Million in 2010. The balance sheet grew 10% overall.

Year to date earnings per share were $2.43 versus $1.97 for the corresponding period last year. Ordinary dividends of $0.66 per share ($364 Million) were declared during the third quarter and paid in October 2011, bringing the total dividend for the year to $1.28 per share ($705 Million). The consolidated balance sheet grew to $80.2 Billion, up 10% which positively influenced net interest income. The Group’s investment portfolio rose 14% to $66.5 Billion, while interest bearing liabilities grew 9% to $66.1 Billion, compared to $60.4 Billion at December 2010.

Trading Income climbed 79% and Fees and Commissions rose 1% to $543 Million and $299 Million respectively. Trading income benefitted from gains in bond trading and fees and commissions benefited mainly from business activities related to asset management, stockbrokerage and credit. Donovan H. Perkins, President and CEO of PanCaribbean further explained that “With the depreciation of the Jamaican currency since the start of the year, foreign currency translation gains of $34 Million had a favorable impact on Other Operating Income, compared to losses reported last year”.

The Group’s non-performing loan ratio stood at 4.9% of its credit portfolio (industry average 8.4%) versus 3.9% of its portfolio at December 2010. “The weak economy is affecting both individuals and companies, and the financial industry is seeing an increase in problem loans,” noted Mr. Perkins. Capital to assets ratio stood strong at 14.6% and risk-weighted capital ratios for the unconsolidated balance sheets of Pan Caribbean Financial Services and PanCaribbeanBank were 23.7% and 26.4% respectively. “These figures,” Mr. Perkins stated, “confirms PanCaribbean’s financial strength and stability.” Stockholders’ equity closed the quarter at $11.7 Billion over the $10.6 Billion at December 2010, as its bond portfolio appreciated with improvements reflected in its fair value reserves and growth in retained earnings.

PanCaribbean’s credit rating was reaffirmed jmA+ by CariCRIS, the Caribbean's regional credit rating agency. PCFS was also awarded the prestigious Governor General’s Award for Excellence by the Jamaica Stock Exchange in 2009 for the second consecutive year and was more recently awarded the Investor’s Choice Champion Company Award 2010. The company is a member of the Sagicor Group and the Jamaica Stock Exchange.

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Carlette DeLeon