Pan Caribbean Financial Services (PCFS) reports net profits of $791M
for first half of 2012
Pan Caribbean Financial Services (PCFS) has reported net profits of $791 Million for the first half of its financial year ended June 30, 2012.
“Our performance was impacted by the challenging economic climate that businesses now face. Rising costs and slowing growth in our main business lines contributed to the 13% reduction versus last year’s $914 Million.” said PanCaribbean’s President & CEO, Donovan H. Perkins.
Mr. Perkins went on to state that “We’ll have to push hard in the second half and watch our expenditure if PanCaribbean is to match last year’s full year results.”
The financial results reported were achieved through 5% growth in net interest income to $1,508 million compared to half-year 2011. However, non-interest income dipped 12% to $524 Million, resulting in Operating Income essentially flat - $2,031 Million versus $2,027 Million in 2011. Operating expenses rose sharply by 12% or $102 Million to $953 Million, influenced by rising Team Member and Occupancy costs.
Non-performing Loans (NPLs) were $512 million or 5.4% of PanCaribbean’s total loan portfolio - below the 8.4% reported by Bank of Jamaica for the regulated financial sector at March 2012. According to Mr Perkins “Non-performing loans reflect the challenges faced by businesses, consumers and homeowners as the slowdown in economic activity negatively impacts employment, wages and consumption. The national data suggests some stabilizing of credit quality over the last two quarters, but our domestic market remains vulnerable.”
PanCaribbean’s total assets increased by $8.3 billion or 10% to $88.5 billion and at June 2012, Total Equity stood at $12.29 Billion.
During its second quarter, PanCaribbean supported a number of activities across the island through active participation by its Team Members. These included traditional projects on Labour Day at the Nest Orphanage, Read Across Jamaica Day in primary schools across the island where PanCaribbean has branches and sponsorship of the Jamaica 50 Poster Competition. The Kingston College leg of the very popular 'Lego Yuh Mind' Robotics workshop was also sponsored, encouraging an interest in science and design for youngsters, especially boys.
Pan Caribbean Financial Services Limited is a member of the Sagicor Group and a member of the Jamaica Stock Exchange. In 2012, CariCRIS, the Caribbean’s Regional Credit Rating Agency, reaffirmed PanCaribbean’s jmA+ credit rating for the 5th consecutive year. PanCaribbean was awarded an unprecedented five Jamaica Stock Exchange Best Practice Awards in 2011, winning first place for Annual Report, Dealers Investor Relations, Dealers Revenue Generation and Market Activity, Corporate Disclosure and Investor Relations and the prestigious Governor General’s Award for Excellence. PanCaribbean was also named Company of the Year (2010) by Investor’s Choice Magazine.