PANCARIBBEAN Group yesterday reported a first-quarter consolidated net income of $396.9 million which, it said, was up 14 per cent over last year’s $349.1 million.

Earnings per share were $0.72 for the current quarter versus $0.64 for the comparative period, the group said.

The main contributor to the improved results was the 23 per cent increase in net interest income, which grew from $562 million to $692 million, reflecting Pan Caribbean Financial Services’ (PCFS’) ability to cut the interest expense more steeply than the fall-off in interest income. Interest income fell by $167 million versus a $296 million drop in interest costs.

“Non-interest income for the period fell 28 per cent from $259 million to

$187 million,” the Group said in a news release.

Fixed income trading, stock brokerage, trust, credit and asset management actually showed improved results but the lower income posted for equity trading, FX trading and translation gains translated into lower overall revenue from non-interest income streams.

The Group added that ordinary dividends of $0.61 per share were declared during the first quarter and paid on April 8, 2010. The consolidated balance sheet grew $5.3 billion to $70.5 billion, up eight per cent and positively influencing Net Interest Income.

“This positive impact has created opportunities for our customers, validating our consistent advice to customers over the last six months,” the release quotes Donovan Perkins, president & CEO of PanCaribbean.

The Group said that despite sluggish economic conditions, its credit portfolio continues to perform relatively well, and its non-performing loan ratio at 2.8 per cent of the portfolio (industry average 4.7 per cent) reflects its underlying quality.

Underpinning PanCaribbean’s business is a solid capital base of $8.95 billion, crossing the equivalent US$100 million threshold for the first time, and with a conservative Capital to Assets ratio of 12.7 per cent.

“Our directors are reasonably happy with the results and growth experienced in the quarter,” added Perkins. “Our entire team, especially Operations, deserves the credit for the effort in working through the JDX exercise, keeping our customers informed while continuing to grow the business and deliver excellent results.”