FirstCaribbean International Bank Limited

Management’s Discussion and Analysis
Taxes were lower than the prior year by $15 million or
54% due to a lower proportion of income earned in
taxable jurisdictions.
Review of Consolidated Statement of
Total Comprehensive Income
$millions, as at October 31 2010 2009
Net income for the year 157 175
Other comprehensive income:
Net (losses)/gains on availablefor-sale
investment securities (14) 113
Exchange differences on
translation of foreign operations 3 (14)
Other comprehensive income (11) 99
Total comprehensive income 146 274
Total comprehensive income declined by $128 million or
47% due to the following:
- decline in net income for the year by $18 million as
explained above; and
- decline in other comprehensive income by $110
million due to the realisation of the 2009 availablefor-sale
securities gains on sale in 2010 through
the statement of income. These decreases were
partially offset by increases in exchange differences
on translation of foreign operations mainly Jamaica
where the Jamaican dollar appreciated.
The Bank conducts business in two jurisdictions (Jamaica
and Trinidad) that have functional currencies that float
against the United States (U.S.) dollar. The Jamaican
dollar appreciated slightly by 3.0% year on year, while the
Trinidad dollar remained relatively stable. This resulted in
a gain of $3 million in the current year compared with a
loss of $14 million in the prior year when the currency
was devaluing.
Liabilities & shareholders’ equity
Deposits
Individuals 3,494 3,613
Business & Government 4,357 4,876
Banks 62 141
Other 30 28
7,943 8,658
Other borrowings 45 38
Debt issued 31 125
Other liabilities 174 163
Minority interest 30 28
Shareholder’s equity 1,543 1,491
9,766 10,503
Assets
Total assets declined year on year by $737 million or
7% mainly due to the slowdown in loan demand, as
well as, the reduction in cash and deposits with banks
attributable to the net repayment of deposit liabilities.
Liabilities
Client liquidity needs resulted in a decline in deposits
by $715 million or 8%. Fixed deposits accounted for
approximately 70% of this decline.
The Bank redeemed its Cayman issued debt in full
during the year which accounted for the reduction of $94
million compared to 2009.
Loans & advances and deposits (US $ millions)
and loans to deposit ratio (%)
Review of Consolidated Statement of
Financial Position
$millions, as at October 31 2010 2009
Assets
Cash & deposits with Banks 917 1,277
Securities 1,679 1,744
Loans and advances
Mortgages 2,501 2,513
Personal 722 760
Business & Government 3,552 3,805
Other (3) (12)
Provisions for impairment (196) (161)
6,576 6,905
Other assets 594 577
9,766 10,503
Shareholders’ equity
Shareholders’ equity as at October 31, 2010 was up by
$54 million or 4% driven by earnings for the year less
dividend payments.
The Bank continues to maintain strong capital ratios
of Tier I and Tier I & II of 21% and 22% respectively at
the end of 2010, compared to 19% and 22% respectively
at the end of 2009.
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