FirstCaribbean International Bank Ltd (FCIB) has registered a $1.15 billion profit for the fiscal year ended October 31.
The bank reported net income of US $170.5 million, up by US $69.7million or 69 per cent, a significant increase from one year ago when its net income was US $100.8 million.
In the organisation’s financial report, CEO Colette Delaney said that the company’s earnings were driven by the solid growth in its performing loan book.
She said: “Credit loss expense was improved as the bank benefited from model enhancements and changes to assumptions due to lower probability of defaults.”
Delaney continued: “This was offset by increased taxation and higher operating expenses.”
The Board of Directors of FCIB approved a final quarterly dividend of $0.0125 per share, bringing the total dividend to $0.05 per share for the year. Delaney expressed that the dividends will be paid on January 24, 2020 to shareholders of record as at December 27, 2019.
Delaney also articulated that the bank’s Tier 1 and Total Capital ratios remain strong at 14.5 per cent and 16.2 per cent, well in excess of applicable regulatory requirements.
On November 8, CIBC announced its intention to sell part of its shareholding in FirstCaribbean International Bank Ltd to GNB Financial Group Limited (“GNB”).
GNB, will purchase 66.73 per cent of the shares of FirstCaribbean, subject to the approval of local regulators, while CIBC will retain a 24.9 per cent interest in the Caribbean bank.
GNB is wholly owned by Starmites Corporation S.ar.L, the financial holding company of the Gilinski Group. The Gilinski Group has banking operations in Colombia, Peru, Paraguay, Panama, and Cayman Islands with approximately US $15 billion in combined assets.
The Gilinski Group is led by Jaime Gilinski Bacal, a Colombian billionaire, banker and real-estate developer.
In a past release, Gilinski said: “FirstCaribbean will remain the strong entity it is today, committed to servicing its clients in the region.” He continued: “I have been impressed by the strength and stability of FirstCaribbean and am excited about its prospects for the future.”
According to another release, the 66.73 per cent stake will be purchased at US$797 million, valuing the company at approximately US$1.195 billion.
Commenting on the transaction Delaney said: “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.”