Home' Trinidad and Tobago Guardian : December 9th 2016 Contents Condensed Consolidated Statement of Financial Position
Sir Allan Fields
Chief Executive Officer
Cash, balances with Central Banks and due from banks
Loans and advances to customers
Property and equipment
Assets of disposal group classified as discontinued operations
Customer deposits and other borrowed funds
Debt securities in issue
Liabilities of disposal group classified as discontinued operations
Equity attributable to equity holders of the parent
Issued capital and reserves
Total liabilities and equity
Note: Results have been converted to US$ at an exchange rate of US$1 = BBD$2
Oct 31, 2016 Oct 31, 2015
CHIEF EXECUTIVE OFFICER'S REVIEW
For the scal year ended October 31, 2016, the Bank reported net income of $143.3 million, up $45.4 million or 46%, a signi cant
improvement in performance when compared with prior year's net income of $97.9 million. Lower loan loss impairment expense
contributed signi cantly to this result, as the Bank bene ted from increased loan recoveries and an improved loss experience. Growth in
our core revenue was also a highlight for the year.
Despite the slow pace of economic recovery and uneven investment activity across the Caribbean, productive loans grew 5% over last year,
while non-performing loans declined by 28%, together re ecting the Bank's priority to grow its business with a sound risk management
focus. Both Retail and Wholesale Banking segments produced strong productive loan growth of 4% and 6% respectively as origination
activity outpaced the prior year.
Revenue of $533.8 million was up $11.4 million or 2% against prior year's revenue. Interest margin pressure still persists in a low LIBOR
rate environment with the pace of uplift slower than expected. Demand for credit is better than last year, but is generally expected to follow
the lagging economic conditions in most jurisdictions. Operating expenses of $357.4 million were down $12.7 million or 3% compared
with prior year's expenses of $370.1 million. Prior year's expenses were hurt by restructuring related costs which included the sale of the
Belize operation. The Bank is committed to discretionary expense control and strives to maintain a balance between the investment in its
network, products and people. However, the impact of higher business taxes imposed by various jurisdictions coupled with higher operating
costs continues to hurt operating results.
Loan loss impairment expense was signi cantly lower by $24.2 million compared with the prior period's expense of $41.5 million.
Additionally, non-productive loan balances reduced by $161.6 million to $418.4 million compared with the same period last year.
Signi cant effort has been placed on strengthening credit quality within our total loan portfolio.
Overall, the 2016 nancial results build on the recovery from last year. While the economic outlook for the Caribbean remains modest, we
are positive about the Bank's future and believe we are well positioned for sustainable growth and improved shareholder returns.
We announced a nal dividend for the year of $0.025 per share, bringing the total dividend to $0.045 per share for the year, an increase
of $0.010 over 2015. Our dividend level continues to reinforce our view that the future continues to be promising for our franchise. The
dividends will be paid on January 27, 2017 to shareholders of record as at December 29, 2016.
The Bank's Tier 1 and Total Capital ratios remain strong at 18.9% and 20.6%, well in excess of applicable regulatory requirements.
In 2016, CIBC FirstCaribbean reaf rmed our ve strategic priorities: cultivating deeper relationships with our clients across our business;
focusing on delivering value for our clients through understanding their needs; competing in businesses where we have the expertise to
add differentiated value for our clients; pursuing growth in the region while maintaining sound risk management; and continuously
investing in our people and infrastructure to enhance ef ciency and effectiveness.
Consistent with these priorities, the Bank completed a number of strategic initiatives in 2016 to support acceleration of pro table growth.
To deepen client relationships, customer relationship management systems were enhanced and credit approval processes streamlined to
deliver an improved client experience. Customer feedback on the enhancements has been extremely encouraging.
Understanding clients' needs was central to the launch of our Mobile Banking smartphone app in June this year to complement internet
banking and Automated Banking Machines (ABMs) in our suite of alternate channels. This expanded suite now allows clients to better
customise their banking experience to t their lifestyle. We will leverage ongoing client focused research for continuous improvement.
2016 also saw the launch of our new co-branded insurance offering with a leading regional insurer. The arrangement provides a
differentiated level of service and insurance products to our clients in 11 of our markets across the region. We can proudly say that we offer
a distinctive property insurance experience.
In October we entered the retail banking market in Aruba with a new branch following the opening of a representative of ce last year. This
step represents commitment to our growth plan in the Dutch-speaking Caribbean. To cater to growing demand from our Platinum, Business
Banking and Retail clients, we also opened two ultra-modern nance centres -- at Rendezvous, Barbados, and Cole Bay, St. Maarten.
To support growth of our client base, the Bank continued to expand its ABM network with new ABM installations in The Bahamas, British
Virgin Islands, the Cayman Islands and upgraded older machines to meet enhanced security standards.
Since arriving in the Caribbean in January 2016, I have traveled the region extensively meeting clients and staff. We have highly dedicated
staff with a passion for serving customers. However, we still have work to do to enhance our service. That's why the Bank invested
signi cantly in customer service and sales training for front line staff and coaching and leadership training for managers.
In 2016 we again contributed just over $1 million for the improvement of the communities in which we operate. We continued to support
a number of charitable causes in our various communities -- chief among them, our agship event the annual Walk For the Cure. This
regional cancer fundraiser attracted over twenty thousand participants across the Caribbean this year and raised just over $500,000 for
public awareness and the care and support of those living with the disease.
This year also saw scores of our staff members supporting causes that are dear to them in their communities as part of our Adopt-A-Cause
Programme. More than twenty projects were undertaken by our branches and of ces including assisting young sportsmen in Barbados
with equipment and training, supporting a special needs hospital at Holberton in Antigua, and providing assistance to a children's home in
We are into the third year of our Memorandum of Understanding with the Hospital for Sick Children in Toronto, whose Caribbean Initiative
established by its SickKids Foundation aims to improve the care and diagnosis of children in the Caribbean affected by cancer and blood
diseases. As Nursing Training partner, CIBC FirstCaribbean provided funding for the rst cohort of Caribbean nurses -- drawn from The
Bahamas, Jamaica, St. Lucia and St. Vincent and the Grenadines to begin a specialised one-year Nursing Training Programme at the
University of the West Indies School of Nursing in El Dorado, Trinidad and Tobago. Our commitment to the SickKids Caribbean Initiative is
to provide $1 million commitment over a seven-year period.
I would like to thank our employees, clients and shareholders for their continued support in building this great franchise here in the
Chief Executive Officer
December 9, 2016
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL STATEMENTS
To the Shareholders of FirstCaribbean International Bank Limited
The accompanying summarised consolidated nancial statements, which comprise the consolidated statement of nancial position as at
October 31, 2016, consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash ows for the year then ended, and related notes, are derived from the audited
consolidated nancial statements of FirstCaribbean International Bank Limited for the year ended October 31, 2016. We expressed an
unmodi ed audit opinion on those consolidated nancial statements in our report dated December 9, 2016. Those consolidated nancial
statements, and the summarised consolidated nancial statements, do not re ect the effects of events that occurred subsequent to the
date of our report on those consolidated nancial statements.
The summarised consolidated nancial statements do not contain all the disclosures required by International Financial Reporting
Standards. Reading the summarised consolidated nancial statements, therefore, is not a substitute for reading the audited consolidated
nancial statements of FirstCaribbean International Bank Limited.
Management's Responsibility for the Summary Financial Statements
Management is responsible for the preparation of a summary of the audited consolidated nancial statements on the basis of their
established criteria as described in Note 1.
Our responsibility is to express an opinion on the summarised consolidated nancial statements based on our procedures, which were
conducted in accordance with International Standard on Auditing 810, "Engagements to Report on Summary Financial Statements."
In our opinion, the summarised consolidated nancial statements derived from the audited consolidated nancial statements of FirstCaribbean
International Bank Limited for the year ended October 31, 2016 are consistent, in all material respects, with those consolidated nancial
statements, on the basis of management's criteria as described in Note 1.
December 9, 2016
For the year ended October 31, 2016 (expressed in thousands of United States dollars)
E rnst & Young
P.O. Box 261
St. Thomas, BB22025
Tel: 246 430 3900
Fax: 246 426 9551
246 430 3879
246 430 1352
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