Aug 2010 Financial News

FCIB’s net income flat

Aug 25, 2010

First Caribbean International Bank yesterday declared net income of US$124.5 million for the first nine months of its financial year—results that are almost the same as the same period last year. The bank, which is based in Barbados but operates throughout the Caribbean, said: “The economic environment remains challenging with a slowdown in business activity and overall loan demand, low interest rates, and persistent unemployment levels across many of the countries in the region. “It is against this backdrop that the Bank has still managed to deliver net income of US$124 million for the nine month period ended July 31, 2010 which was consistent with the prior year.”

The bank reported an 11 per cent decrease in its net interest income and increases in loan loss expenses as a result of the global financial climate, but said that these were offset by increases in operating income and decreases in operating expenses due to management’s actions to counter these effects. In addition, the Bank benefited from lower taxation expenses due to lower income earned in the higher tax jurisdictions. Net interest income was down by US$37 million primarily due to lower average loan and securities volumes and rates.

At the same time, operating income was up US$34 million due to non recurring higher gains on the sale/repurchase of investment securities/debt, lower mark to market losses and higher fee income. The bank said that its operating expenses declined by US$8 million due to continued focus on cost control. While every effort is being made to work with our customers to manage their debt obligations in these trying times, loan loss expenses have increased as the credit portfolio is impacted by the environment and these conditions are expected to continue. The bank’s risk-based capital ratios continue to be strong and we remain poised to take advantage of future opportunities.


Source:
Trinidad Guardian
Wednesday August 25, 2010

http://guardian.co.tt/business/business/2010/08/25/fcib-s-net-income-flat