Dec 2008 Financial News

FirstCaribbean affected by global financial crisis

Dec 08, 2008

THE current global financial condition has significantly impacted the net income of one the largest banks in the Caribbean.

The net income attri-butable to shareholders for FirstCaribbean International Bank Limited for the fiscal year ended October 31, 2008, has dropped to $350.6 million from $511.4 million in 2007.

The word has come from Michael Mansoor, Chairman of FirstCarib-bean International Bank Limited, in a press release issued yesterday.

Mansoor has cited the tightening conditions in the global and regional economies, but has also explained that this year’s results are in line with management’s expectations.

In the third quarter report for the regional bank, Mansoor indicated that the management and directors of the firm would continue to monitor the economic conditions and take the necessary steps to ensure that the interests of all their stakeholders are promoted in these circumstances.

The performance at that time was described by the bank’s chairman, as reflected in the solid core results of the Group, as most satisfactory in the current challenging economic environment in some of our markets. According to Mansoor, included in last year’s earnings were a Bds$104.8 million gain on the restructuring of the bank’s Visa membership and a one-time curtailment gain in health benefits of $836 million.

However, this year, the banking firm recorded a loss on the sale of Visa shares of $7.0 million. Meanwhile, total revenue for this year stands at over one billion dollars, which is a significant decrease in the company’s revenue from the year before. For 2007, the total revenue stood at over $1.2 billion.

At its five-year milestone in the bank’s annual report last year, Mansoor noted that the bank achieved excellent results with net income attributable to equity holders of the parent, surpassing the quarter-billion-dollar mark at US$255.7 million.

In the 2007 report, the chairman stated, “Excluding the one-time gain of $104.8 million relating to the Visa membership restructuring, these results reflect robust growth in core operating performance. The Directors have approved a 19 per cent increase in per share dividends to Bds$0.1250.”

Moreover, Mansoor said, “These very commendable results have come about as we celebrate the fifth anniversary of the formation of FirstCaribbean and are a tangible manifestation of the achievements of all our people. A glance at the last five years reveals stellar accomplishments: sustained organic growth in balance sheet aggregates and profitability, two important acquisitions – one in Trinidad and the other in Curaçao, integration and improvements in our technology platforms, major and fundamental enhancements in the infrastructure of the Bank in distribution channels, and in all functional support areas.”



Source:
Stacia Browne
The Barbados Advocate
Monday December 8, 2008
http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=786