FirstCaribbean International Bank (Bahamas) sees 11 percent net income increase

FirstCaribbean International Bank (Bahamas) sees 11 percent net income increase
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NASSAU, BAHAMAS – FirstCaribbean International Bank (Bahamas) Limited has reported a net income of $94 million for the 2019 fiscal year up 11 percent over the previous year’s performance.

Marie Rodland-Allen, FCIB’s Managing Director in her review of the results for the year ended October 31, 2019 noted that the Bank reported net income of $94 million, up $9 million or 11 percent from last year’s net income of $85 million.

“The Bank’s revenue rose by $17 million from $188 million in 2018 due primarily to higher interest earnings, lower securities losses and fee income,” Rodland-Allen noted.

“Operating expenses were $107 million, up $16 million due primarily to higher group service costs. Credit loss expense on financial assets improved despite an increase in credit loss allowances during the 4th quarter as a result of the impact of Hurricane Dorian.”

She added: “The bank benefited from model enhancements and changes to assumptions due to lower probability of defaults. The Bank’s Tier 1 and Total Capital ratios remain strong at 27.7 per cent and 27.6 per cent, respectively. At its meeting on December 12, 2019, the Board of Directors approved an interim dividend of nine cents ($0.09) per share, subject to regulatory approval.

It was also noted that on November 8th, 2019, CIBC announced its intention to sell part of its shareholding in FirstCaribbean International Bank Ltd -its parent company- (to GNB Financial Group Limited (“GNB”), a company ultimately owned by Jaime Gilinski.

This transaction remains subject to regulatory approval.

“On closing of the transaction, GNB will become FirstCaribbean’s majority shareholder owning 66.73per cent of our Parent Company’s shares while CIBC will retain a 24.9 percent interest.

“This is an exciting development for FirstCaribbean. It creates a platform for the future growth of our Bank and allows us to retain and celebrate our heritage while building our future.