May 2016 Financial News

Customer deposits at FCB increases

May 09, 2016

Customer deposits at First Citizens bank have increased despite Planning Minister Camille Robinson-Regis’ decision to close her account there because of an alleged “breach of confidentiality” involving her personal financial information and Prime Minister Dr Keith Rowley’s admission that he was “uncomfortable” with the State-owned commercial bank as a result of the alleged leak of information.

According to the unaudited financial statements for First Citizens Bank Ltd and its subsidiaries for the period ended March 31, customer deposits were valued at $29.2 billion.

“During the last six months customer deposits grew by approximately 13.5 per cent to $29.2 billion,” First Citizens’ chairman Anthony Smart stated in his report dated April 25.

Smart said the First Citizens Group had concluded “another profitable quarter” with profit after taxation for the three-month period ended March 31 amounting to $153.5 million.

“This brought the year to date profit for the six months to $333.4 million which represents an increase by 2.4 per cent as compared to the corresponding period in 2015,” Smart stated.

On March 1, Robinson-Regis closed her account with First Citizens in Arima, after she said she had lost all trust in the bank, following what she described as “breach of confidentiality” in which a journalist was given information about a private banking transaction she had done. On the heels of that, Rowley admitted to feeling discomfort with the State-owned bank, where he holds a credit card account. Addressing the post-cabinet press conference at the Magdalena Grand Hotel in Tobago on March 3, Rowley offered a made-up scenario and stated: “I have a credit card in FCB and suppose I go and buy some underwear for my wife and I didn't deliver it to her on time and somebody tells the press.”

Opposition Leader Kamla Persad-Bissessar and chairman of the United National Congress (UNC) David Lee both took Rowley to task for his comments claiming they would cause a run on the bank.

Finance Minister Colm Imbert called on First Citizens to provide him with information on the systems in place at the bank to ensure there is compliance with financial obligations regulations.

In response to the situation First Citizens issued a statement reaffirming that it considers “the confidentiality of its customers’ business” as its “highest priority.”

Source:
JOEL JULIEN
Trinidad Guardian
Sunday May 8, 2016