Bahamas - FirstCaribbean International Bank

Notes to the Consolidated Financial Statements
October 31, 2007
(expressed in thousands of Bahamian dollars)
82
23. Dividends paid and proposed
2007 2006
$ $
Declared and paid during the year
First dividend $0.25 cents (2006-$0.30) 30,054 36,065
Final dividend $0.22 cents (2006-$0.25) 26,445 30,054
Total dividends declared and paid 56,499 66,119
At the Board of Directors meeting held on December 17, 2007, a final dividend
of $0.25 per share amounting to $30,054 in respect of the 2007 net income was
proposed and declared. The consolidated financial statements for the year ended
October 31, 2007 do not reflect this resolution, which will be accounted for in
equity as a distribution of retained earnings in the year ending October 31, 2008.
24. Related party transactions and balances
As discussed in Note 1, the Bank’s Parent and major shareholder is FirstCaribbean
International Bank Limited who owns 95.2% of the Bank’s ordinary shares. From
October 11, 2002, the Bank’s major shareholders were jointly CIBC and Barclays.
On December 22, 2006, CIBC acquired Barclays’ interest in the Bank and now owns
91.4% of the shares of The Bank’s Parent (FCIB). The remaining shares are widely
held.
A number of banking transactions are entered into with related parties in the normal
course of business. Outstanding balances at year-end and transactions during the
year are as follows:
Directors and key Major shareholder
management and associated Ultimate
personnel banks Shareholders
2007 2006 2007 2006 2007 2006
$ $ $ $ $ $
Balances:
Due from banks — — — 86 117,986 230,778
Loans and advances
to customers 2,939 2,011 89,169 88,754 — —
Deposit liabilities 4,152 5,869 600,452 484,877 13,905 12,757
Transactions:
Interest income earned 87 151 5,484 4,117 8,028 15,956
Interest expense incurred 219 201 27,457 11,408 341 626
Other revenue – fee
income (note (i)) — — — — — 1,099
Other expenses (note (ii)) — — 2,300 2,300 38 50
See Auditors’ Report Page 56.
24. Related party transactions and balances (continued)
i) The agreement with Barclays Bank PLC whereby the Bank received an annual
payment from Barclays Bank PLC of $10,000 effective January 1, 2002, as an
incentive for the Bank to retain its deposit placements with Barclays Capital
expired on December 31, 2005.
ii) Expenses incurred in relation to banking and support services.
Key management compensation
2007 2006
$ $
Salaries and short term benefits 1,960 2,095
Directors’ remuneration
A listing of the members of the Board of Directors is included within the Bank’s
Annual Report. In 2007, the total remuneration of the directors was $45
(2006 — $67).
25. Contingent liabilities and commitments
The Bank conducts business that involves guarantees, performance bonds and
indemnities, which are not reflected in the balance sheet. At the balance sheet date
the following contingent liabilities and commitments exist:
2007 2006
$ $
Letters of credit 47,728 60,881
Loan commitments 290,738 358,191
Guarantees and indemnities 25,124 16,067
363,590 435,139
The Bank is the subject of legal actions arising in the normal course of business.
Management considers that the liability, if any, of these actions would not be
material.