PAN Caribbean Financial Services’ (PCFS) net profit climbed three per cent to $1.52 billion on higher interest margins and fee and commission income for the year ended December 31, 2010.

On Monday, PCFS posted $2.75 billion in net interest income, up 4.8 per cent over 2009, and $406 million in fees and commission income, up 20.8 per cent.

Interest margin climbed despite a 21.4 per cent decline in interest income as the repo cost fell 34.5 per cent while the redemption of half of 12 1/2 per cent prefence shares led to a $21-million reduction in interest expenses.

Growth in fees and commission income resulted primarily from increases in asset management fees, up 17.6 per cent, credit-related fees, up 44.6 per cent, and stock brokerage fees, up 81.5 per cent.

Foreign exchange trading and translation losses totalling $23.5 million in 2010 reversed a $294.6-million gain in 2009, while equities trading gains of $31.6 million reversed a loss of $10.9 million.

Staff costs climbed from $758 million to $912.5 million, primarly due to an 8.6 per cent rise in wages and salaries and an $94-million rise in pension costs.