Bahamas - FirstCaribbean International Bank

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FirstCaribbean International Bank(Bahamas) Limited LocationsBay Street (B)P O Box N 8350Bay StreetNassauNew ProvidenceTel: (242) 356-8000Fax: (242) 328-7979Cable Beach (C)P O Box N-7125Hoffer Shopping CentreNassauNew Providence IslandTel: (242) 327-8361Fax: (242) 327-8324East Bay (C)P O Box SS-6254308 East Bay StreetNassauNew Providence IslandTel: (242) 393-1966Fax: (242) 393-7170East Mall (C)P O Box F-42556The First Commercial CentreEast Mall DriveFreeportTel: (242) 352-6651Fax: (242) 352-6655Freeport (B)P O Box F-42404Pioneers’ WayFreeportGrand Bahama IslandTel: (242) 352-8391Fax: (242) 367-9712Governor’s Harbour (B)P O Box EL-25022Governor’s HarbourEleuthera IslandTel: (242) 332-2300Fax: (242) 332-2318Harbour Bay (B)P O Box N-8350Bay StreetNassauNew Providence IslandTel: (242) 393-2334Fax: (242) 393-2560Hope Town (C)P O Box AB-20402Hope TownAbacoTel: (242) 366-0296Fax: (242) 367-2156Hurricane Hole (C)P O Box SS-6254Hurricane Hole ShoppingPlazaParadise IslandTel: (242) 363-3588Fax: (242) 393-2146John F Kennedy Drive (C)P O Box N-8329RND Plaza WestJFK DriveNassauNew Providence IslandTel: (242) 323-2422Fax: (242) 322-7851Madeira (C)P O Box N-7533MadeiraNew Providence IslandTel: (242) 322-8824Fax: (242) 325-7100Man-O-War Cay (C)P O Box AB-20402AbacoTel: (242) 352-9365Fax: (242) 367-2156Marathon Mall (C)P O Box N-8329Marathon MallNew Providence IslandTel: (242) 393-4386Fax: (242) 394-0239Marsh Harbour (B)P O Box AB-20401Great Abaco IslandTel: (242) 367-2152Fax: (242) 367-2659Marsh Harbour (C)P O Box AB-20402Marsh HarbourAbacoTel: (242) 367-2166Fax: (242) 367-2156New Plymouth (B)P O Box AB-20401New PlymouthGreen Turtle CayTel: (242) 365-4144Fax: (242) 365-4144Palmdale (B)P O Box N-8350PalmdaleMadeira StreetNassauNew Providence IslandTel: (242) 322-1231Fax: (242) 322-1121Queen’s Highway (C)P O Box F-42556Queen’s HighwayFreeportGrand Bahama IslandTel: (242) 352-9365Fax: (242) 352-9367Shirley Street (C)P O Box N-7125Shirley StreetNew Providence IslandTel: (242) 322-8455Fax: (242) 326-6552Thompson Boulevard (B)P O Box N-8350Thompson BoulevardNassauNew Providence IslandTel: (242) 325-6479Fax: (242) 328-1717Town Centre Mall (B)P O Box N-8350Town Centre MallBlue Hill RoadNassauNew Providence IslandTel: (242) 325-6479Fax: (242) 328-6839Providenciales (C)P O Box 698Leeward HighwayProvidencialesTel: (649) 946-5303Fax: (649) 946-5325Grand Turk (B)P O Box 61Cockburn TownGrand TurkTel: (649) 946-2831Fax: (649) 946-2695Providenciales (B)P O Box 236Butterfield SquareProvidencialesTel: (649) 946-4254Fax: 946-4573South Caicos (B)Lee StreetCockburn HarbourTel: (649) 946-3268FirstCaribbean International Bank(Bahamas) Limited (C)Commercial Banking CentreP O Box N-7125Shirley StreetNassauTel: (242) 322-8455Fax: (242) 328-1690FirstCaribbean International Bank(Bahamas) Limited (C)Corporate Office308 East Bay StreetNassauTel: (242) 393-4710Fax: (242) 393-4280Bahamas Corporate Division (B)P O Box N-3221Charlotte HouseShirley StreetNassauNew Providence IslandTel: (242) 326-1130Fax: (242) 356-3095Bahamas Offshore Banking Centre (B)P O Box N-8350Bay StreetNassauNew Providence IslandTel: (242) 356-8016Fax: (242) 328-7979FirstCaribbean International FinanceCorporation (Bahamas) Limited (B)P O Box N-8350NassauNew Providence IslandTel: (242) 322-7466Fax: (242) 326-8814Nassau VISA Centre (B)P O Box N-8350Charlotte HouseShirley StreetNassauNew Providence IslandTel: (242) 328-0405Fax: (242) 326-8814Card Services Centre (C)P O Box N-8329Independence DriveNassauNew Providence IslandTel: (242) 394-8472Fax: (242) 394-3655Note: (B) – formerly Barclays(C) – formerly CIBC2629
Management’s Discussion and Analysis ofOperating Results and Financial ConditionOverview of Audited Financial StatementsOn October 11, 2002 the combination of Barclaysand CIBC’s retail, corporate and offshore bankingoperations in the Bahamas and Turks & Caicos Islandswas completed and CIBC Bahamas Limited wasrenamed FirstCaribbean International Bank(Bahamas) Limited.Although CIBC and Barclays PLC hold identicalvoting share interests of 45% in FirstCaribbeanInternational Bank Limited which is the parentcompany of the Bank, at the initial stage of thecombination transaction, the value of Barclays’interest was larger than CIBC’s. As a result, underInternational Accounting Standards the accountingtreatment for the combination was determined to bethat of a reverse acquisition with Barclays identified asthe deemed acquirer. As a consequence, the publishedincome statement represents ten months results forBarclays Bahamas and Turks & Caicos Islandsoperations and approximately three weeks of CIBCBahamas results (Barclays’ results from January 1, 2002as they previously had a December fiscal year-end andCIBC Bahamas’ results from October 11, 2002 – thedate of the combination).This accounting convention applies to all of thefinancial statements although the balance sheet ismore straightforward, showing combined balances ata point in time i.e. October 31, 2002. The goodwillfigure of $196 million on the balance sheet representsthe excess of the fair value of CIBC Bahamas’ businessover the fair value of the identified assets andliabilities as of October 11, 2002, adjusted foramortization to the balance sheet date. All prior yearcomparatives reflect the fiscal 2001 results of BarclaysBahamas and Turks & Caicos Islands operations.As a result of the combination, the actual total assetsstood at $3.2 billion at October 31, 2002 with a totalloan portfolio of $1.5 billion and capital ratios well inexcess of regulatory requirements. The large increasein all balance sheet categories is due to the fact thatthe 2001 comparatives only include the operations ofBarclays in The Bahamas and Turks & Caicos Islands,whereas 2002 balances are those for the combinedoperations.A restructuring charge of $8.8 million has beenincurred this year to accommodate the funding ofcertain future costs related to the combination.Excluding the restructuring charge, the netincome before goodwill amortisation is $20.9million. Of this figure, $1.7 million relates tothree weeks of ex-CIBC operations and $19.2million relates to ten months of ex-Barclays’operations. Included in the ex-Barclays’ noninterestincome for the period is $8.3 million,representing ten months worth of the $10million annual incentive payment from BarclaysCapital (Barcap) which is further described inNote 19, of the Financial Statements.Performance OverviewIt is emphasized that because of the applicationof reverse acquisition accounting and theincurring of restructuring charges the reportednet profit of $11.5 million does not accuratelyreflect the ongoing operating performance of thecombined entity. To address this issue theremaining discussion and analysis focuses on thepro-forma combined results for Barclays and CIBC.This disclosure essentially allows the reader toview the combined performance of the twoentities as if they were two stand-alone businesses,without any accounting impact from a combination.On a combined basis, the total assets of the Bankgrew by $108 million or 3.6% with total loansincreasing by $53 million or 3.5%. Total customerdeposits also grew by $20 million or 0.7% of thecombined deposits of 2001. Despite this balancesheet growth, net income declined slightly from$53.9 million to $53.7 million.Net Interest IncomeNet interest income for the year fell by 12%from $101 million to $90 million with both theinterest income and the interest expense amountsdropping from the previous year. The decline innet interest income was brought about by thefalling US interest rates on our large US$denominated cash resources rather than decliningbusiness volumes. Net interest margin declinedfrom 3.5% to 3.0%.30
Page 3: ContentsOur Heritage 6Notice of Mee
Page 6 and 7: FirstCaribbean International Bank
Page 8 and 9: Our HeritageBarclays BankThrough th
Page 10: Notice of MeetingAnnual MeetingNoti
Page 13 and 14: Directors, Senior Management & Advi
Page 15 and 16: Directors’ ReportDIRECTORSIn acco
Page 17 and 18: Chairman’s ReviewIn late 2002, co
Page 19 and 20: Chairman’s Reviewpolicies. We are
Page 21 and 22: Group Chief Executive Officer’s R
Page 27 and 28: Country Manager’s ReportYear in R
Page 29: Country Manager’s ReportBank in 2
Page 33 and 34: Management’s Discussion and Analy
Page 35 and 36: 34Retail Banking
Page 37 and 38: 36Corporate Banking
Page 39 and 40: 38International Banking
Page 41 and 42: 40Capital Markets
Page 43 and 44: 42Marketing and Communications
Page 45 and 46: 44Human Resources
Page 48 and 49: FirstCaribbeanInternational Bank(Ba
Page 50 and 51: FIRSTCARIBBEAN INTERNATIONAL BANK (
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FIRSTCARIBBEAN INTERNATIONAL BANK (
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FIRSTCARIBBEAN INTERNATIONAL BANK (
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FirstCaribbean International Bank(B
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FirstCaribbean International Bank(B
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The undersigned....................
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