PanCaribbeanBank Limited, which began business just eight months ago as a commercial bank, has added just about 1,000 clients to its list and has set a target of another 2,000 customers this year.

Run by Philip Armstrong, who took charge of the operation two months after start-up, replacing Henry Pratt who resigned, the bank contributed 18 per cent of revenue to parent Pan Caribbean Financial Services last year.

Pan Caribbean CEO Donovan Perkins said the aim is to grow the commercial banking contribution to between 25 and 35 per cent.

That, for now, is a moving target, which rests on the health of the economy.

Economic climate

"The economic climate has reduced the rate at which we intended to grow the bank," said Armstrong, who is chief executive officer of PanCaribbeanBank and Perkins' deputy at Pan Caribbean Financial Services.

Armstrong said the additional 2,000 clients sought is a trimmed-down version of earlier projections.

With 36 per cent of its customers accounting for 89 per cent of its business, Perkins said the bank's penetration with its existing customers is very deep. PanCaribbeanBank's business model is based on providing a comprehensive range of financial services - personal and business banking, wealth management and investment banking - to existing and new customers.

"The commercial bank is a very strategic investment for us. One of our targets is to do substantially more cross selling of our products to existing clients as well as attract new ones," Perkins said.

Compact operation

Having shelled out more than J$100 million to start up the commercial banking arm, Perkins highlighted the fact that his bank is a small one but said he and his people see virtue in a compact operation.

The bank, No 7 in assets in a market of seven, is capitalised at $7.1 billion with total assets of $11.56 billion at December, up from the near $10 billion it started out with in June last year. The bank holds $6.5 billion in deposits.

"We have grown without putting our foot on the gas," said Perkins.

"If we had really grown the bank more rapidly, we would have taken on some unnecessary risks."

huntley.medley@gleanerjm.com