Pan Caribbean Financial Services Ltd profits up 24% (J$256 million)

November 13, 2011

Pan Caribbean Financial Services Ltd (PCFS) and its subsidiaries reported 3rd quarter results of $1,338 million for the nine-month period ended September 2011, this despite a 17% increase in Operating Expenses. 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.

Pan Caribbean Financial Services Ltd is a member of the Sagicor group.

Profit and Loss
Their results were significantly boosted by growth in Non-interest Income.

Non-interest Income year-to-date rose 83% to $901 Million from $493 Million. Fixed Income Trading, Asset Management Fees, FX Trading and Translation Gains, Treasury and other Service Fees reflected improved results. Equity Trading, Stock Brokerage, Trust and Credit Fees posted lower revenues.

Net Interest Income year-to-date increased 7% to $2,157 Million from $2,008 Million, supported by balance sheet growth of 11%. Income Earning Assets increased by $8.9 Billion to $76.1 Billion, (up 13%).

Their Net Interest Margin declined from 4.09% in 2010 to 3.88% due to the continued downward movement in yields on both investment and credit assets. Additionally, year-to-date operating expenses increased 17% to $1,291 Million, compared to $1,104 Million for the prior year. Team Member costs rose 22% as a result of annual salary adjustments and incentives.

Balance Sheet
Asset Efficiency ratio (Income Assets / Expense Liabilities) continued to improve, moving from 112% in the prior year to 113% for the current period. During the quarter, Non-performing Loans and Leases were $459 Million or 4.9% of the portfolio (June 2011 industry average : 8.4%).

Total Assets were $80.2 Billion, up 10% since December 2010.

YEAR-TO-DATE HIGHLIGHTS

  • Net Profit of $1,338 Million up 24% (2010 : $1,082 Million)
  • EPS = $2.43 up 23% (2010 : $1.97)
  • Operating Efficiency = 42.2% (2010 : 44.2%)
  • Q1 ordinary dividends paid $341 Million ($0.62 per stock unit)
  • Q3 ordinary dividends payable $364 Million ($0.66 per stock unit).
  • Annualized Return on Equity of 16.82% (2010 : 13.7%)
  • Annualized Return on Assets of 2.2% (2010 : 1.5%)
  • Capital to Assets ratio of 14.6% (2010 : 13.5%)

2011 Q3 FINANCIAL HIGHLIGHTS

  • Net Profit for Q3 of $424 Million, down 7% (2010 : $454 Million)
  • Q3’s EPS = $0.77 down 7% (2010 : $0.83)
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