- Contributed
President and CEO of Pan Caribbean Financial Services Limited, Donovan H. Perkins, addressing the audience at the group's annual general meeting, which was held on Friday at the Terra Nova Hotel, St. Andrew.
Ashford W. Meikle, Staff Reporter
PRESIDENT AND chief executive officer of Pan Caribbean Financial Services (PCFS), Donovan H. Perkins, is upbeat about the group's performance for 2004. Now it aims to be the premier unit trust provider and one of the top investment houses in Jamaica. Mr. Perkins' expressed these sentiments during his presentation at PCFS' annual general meeting which was held on Friday at the Terra Nova Hotel on Waterloo Road, St. Andrew.
The directors have clearly set out their objectives for PCFS and with Mr. Perkins at the helm, there is very little doubt that many will be obtained. In 2001, Group Chairman Richard Byles said, "We are determined to stake our claim in the new and exciting landscape. We will expand as conditions and opportunities present themselves." Now celebrating its 20th year, Pan Caribbean did just that earlier this year the company formally merged with Manufacturers Investments Limited (MIL), the parent company of Sigma Unit Trust, Manufacturers Merchant Bank, Manufacturers Credit & Information Systems and Manufacturers Sigma Investment Management Limited.
According to the group, the merger resulted in "an expanded menu of financial products, wider distribution across the island with five branches, over $40 billion of assets under management and equity in excess of $2.8 billion."
NET PROFITS
For its 2003 financial year ending December 31, the Group returned net profits of approximately $342 million, a 20 per cent increase over the previous year. The NPAT was earned on total interest income of $2.8 billion, a 61.5 per cent increase over the previous year's figure of $1.7 billion. Pan Caribbean says it achieved healthy profits in spite of last year's volatile money market environment because it focused on managing its risk and investing in brand-building activities.
The CEO outlined to shareholders the plans which the group has to consolidate its position and expand its operations in the financial services market. Mr. Perkins said that Pan Caribbean would diversify its operations and offer new products. He informed the audience that the company would now be looking at venturing into the wider Caribbean to explore the possibilities of joint partnership. The group already has a small operation in Trinidad with its Advance card. But, hinting that Pan Caribbean is ready to deepen its foray into regional financial markets, he said Caribbean expansion "is a project which we will be putting some energy into and hopefully have something positive to report at next year's AGM."
The group says it plans to apply for a commercial banking licence as it wants to convert its merchant bank licence to a retail one. The Jamaica Stock Exchange (JSE) could soon have a new member. Sunday Business understands that Pan Caribbean has been successful in its application to the Stock Exchange to be a registered broker on the JSE. At present there are 10 functioning licensed stockbrokers on the Jamaica Stock Exchange. However, according to Mr. Byles, the company has not decided whether it will buy
the seat.
CHALLENGES AHEAD
In spite of the positive trends in the economy, Mr. Perkins acknowledged that there were challenging times ahead. He cited impending regulations by the Financial Services Commission which will affect the industry. "The financial services industry," he said, "is experiencing shrinking numbers and it is expected to continue the environment is vastly competitive."
The CEO also pointed out that crime could negate the growth in the tourism industry. An unstable dollar could also have effects not just on the financial services sector but also the country's economy as a whole.
But the group feels that it is sufficiently poised to meet the challenges. One of its major plans is to increase its "customer base through pointed marketing campaigns and the development of new, innovative products."
Mr. Perkins expressed confidence in his staff, describing his team as "a strong blend of experience with energetic well trained professionals in financial services."
