Bahamas - FirstCaribbean International Bank

Horace Cobham
Managing Director
Corporate Banking
Corporate Banking
Another Successful Year
2007 proved to be another successful year for the Corporate Strategic Business
Unit as we continue to build on the solid foundation over the past three years set
around our customers, our employees and tailored financial solutions and service.
Our excellent results have again underscored the diversity of our operations as
we serve and support our customers in their business activities throughout
FirstCaribbean’s footprint. We saw one of our newest businesses, Trinidad,
perform exceptionally well with over 115% business volume growth over last
year. Improved results were also registered in the Jamaica, Cayman Barbados and
the OECS markets in the face of intense competition. Overall, our sales force of
dedicated relationship managers, industry specialists and Small Business officers
have kept focused on business opportunities and have helped us to retain our
market position in all our key markets.
Financials
Corporate loans grew by 15.5% year over year to $3.6 billion, fuelled by the
disbursement of over $1 billion in loan facilities for the third consecutive year.
Deposits continue to be a growth priority for the business and this year we realised
5.6% growth, moving the portfolio to $2.9 billion. Profit and loss performance
has also been strong in 2007. Total revenues increased by 10% to $247.7 million,
with the primary contributor, net interest income, increasing by 13%. Operating
expenses continued to be tightly controlled, with strong productivity metrics
being achieved.
These strong financial results have been achieved without diluting our risk
acceptance criteria. Underlying asset and portfolio quality remain well within the
Bank’s established risk parameters and well diversified loan portfolio has allowed us
to manage our country and industry risks successfully, as we pursued opportunities
across the region. Additionally, as the Bank moves into a Sarbanes Oxley era, the
Corporate SBU is actively ensuring the correct governance and control structures
are in place to achieve full compliance by the first quarter of 2008.
Customer Service
During 2007, Corporate has worked to deepen our understanding of our
customers through better research, segmentation and tailoring products and
services to meet their needs. Broadening the way we interface with customers
through multiple channels has been another area of focus for us, as we respond
to customer requests for more self-service options and technological solutions.
In this regard, our Internet Banking platform, facilitating straight-through
processing of incoming and outgoing wires in most markets, has been seen as
an excellent option by our customers.
People
Our 280 staff members across the region played an integral role in the success
of the Corporate SBU in 2007. Their work effort, dedication and commitment
have resulted in our customers rewarding us with more of their business, and
most importantly, their trust. In 2007, we continued with our accreditation
programmes under our sales and service mandate. On the risk side, in addition
to credit training, we have rolled out Anti-Money Laundering and Know
Your Customer courses to equip our people to better manage in the current
environment. We remain committed to providing our people with the right
tools, training and leadership to serve our clients better. To our staff, I say thank
you for your dedication and finding new, innovative ways towards being first for
our customers.
Outlook
As we enter 2008, there are expectations for a weaker global economic
environment, characterised by high oil prices, slowdown in business and
consumer activity and lower interest rates. The region’s dependence on foreign
direct investment, capital flows and tourism will heighten the potential for
impact on our regional business. However, the Corporate SBU is confident that
we can leverage the Bank’s excellent balance sheet strength, our deep customer
knowledge and service excellence to post another good performance in 2008.
Service excellence is integral to our value proposition to customers. We are
committed to continually enhancing service levels through all our channels and
contact points.
We stand committed to delivering the best customer experience possible, one
that is tailored, efficient and solution oriented. Thank you to our customers for
your business and we look forward to continuing our partnership in 2008.
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