FirstCaribbean International Bank (Bahamas) Limited

Chairman’s Report
Completing a very challenging integration programme and
battling the negative impact of hurricanes on our business in
Grand Bahama and Abaco occupied much of our attention
and focus during our second year of operation. We emerged
a stronger, better Bank, confident that we are equipped to
stave off adversity and function effectively in the interest of
our shareholders, customers and staff.
With our new integrated technological platform, consolidated
branches, common policies and procedures, a unified
corporate culture and a strong brand, we were able to register
an acceptable financial performance in 2004.
We achieved satisfactory growth in loans in both the Bahamas
and Turks and Caicos Islands, particularly in mortgages and
corporate loans. We can proudly regard 2004 as a year of
accomplishment in terms of building the infrastructure of the
Bank.
Governance
As our new Bank continues to evolve into the world-class
Caribbean financial institution which we intend it to be,
matters of good and effective governance are a major priority
and continue to engage us at every level. Our executives and
employees continue to function in a manner consistent with
an awareness of the need to adhere to a rigorous and robust
culture of risk management, internal controls and governance
that safeguard and bolster the interests of our shareholders,
customers and employees.
Internal audit, operational, market and credit risk
management functions reside with committed executives
and specially skilled and trained staff within the Group.
Despite the challenges of the past year, we have successfully
maintained the level of expenses for both credit and noncredit
losses within acceptable limits.
Legal and regulatory compliance is one of our highest
priorities. We continue to interface and consult with our
regulators and in the last year have increased our contact with
them to ensure that each aspect of our operations continues
to be in compliance with all applicable laws and regulations.
The Board
Our Board of Directors continues to meet quarterly and have
oversight of all aspects of the Bank’s business. The Directors
provide a further level of corporate governance and valuable
feedback and intelligence from the market. Our executives
and senior managers benefit tremendously from the
experience and expertise of our directors.
hardworking staff, and guided by our core values, they are
working assiduously to secure improved customer service,
control and governance of our business and to transform the
Bank by introducing new channels and platforms. With the
effective leadership of our Senior Management, our staff will
maximise their potential, and the Bank retains its
commitment to rewarding our people for performance.
We take this opportunity to extend our sincere appreciation
to Mr. Terry Hilts for his sterling contribution to the Bank as
Retail Director, Northern Caribbean and formerly as
Managing Director of CIBC Bahamas Limited. He has retired
and will continue to give us the benefit of his tremendous
experience as a director of the Bank.
We also extend condolences to the family of the late Reg
Lobosky, retired director of the Bank.
Outlook for 2005
In October 2004 the Bank entered into an agreement for sale
of its building located on Bay Street in Nassau and a leaseback
of a portion of the building from which the branch will
continue to operate. The transaction was completed in
January 2005. We expect to use the proceeds to bolster our
capital formation.
In December 2004 the FirstCaribbean Group completed the
acquisition of a niche player in the Trinidad and Tobago
market, the Mercantile Banking & Financial Corporation
Limited. We are keen to expand our footprint into this
relatively large and prosperous market.
We enter aggressively into 2005 with our eyes fully fixed on
growing our business and expanding our market share and
footprint in all segments of our business in the Bahamas and
the Turks and Caicos Islands, while adhering to our control
framework.
We are deeply committed to utilising the new integrated
technology platform together with new channels of
distribution to offer our customers an even wider range and
quality of service in the years ahead.
We acknowledge the loyalty and support of our customers,
particularly in more recent times when we dealt with the
difficulties of integrating the heritage banks in the Bahamas
and the Turks and Caicos Islands. We believe that our
integration has been difficult but eminently successful. I wish
to thank our regulators, shareholders, customers, directors
and staff for their support during the past year.
Our People
We have welcomed new and experienced members to our
Management team, which now comprises a rich blend of
skilled professionals. Together with our committed and
Michael Mansoor
Chairman
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