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Sunday, July 20, 2025

FirstCaribbean profits drop by almost 70%

by

Kyron Regis
1787 days ago
20200828
FirstCaribbean International Bank

FirstCaribbean International Bank

First­Caribbean In­ter­na­tion­al Bank Ltd (FCIB) has record­ed net in­come of US $15.2 mil­lion (TT $103.1 mil­lion)for the third quar­ter of its fis­cal year end­ed 31 Ju­ly, 2020. This rep­re­sent­ed US $33.4 mil­lion (TT $226.6 mil­lion) or 68.7 per cent low­er than the third quar­ter’s net in­come of US $48.6 mil­lion (TT $ 329.7 mil­lion) a year ago.

In the CEOs re­view of the bank’s fi­nan­cial state­ments, FCIB head Co­lette De­laney said: “These re­sults re­flect the con­tin­u­ing im­pact of the COVID-19 pan­dem­ic in­clud­ing the de­cline in US in­ter­est rates, our pro­jec­tion of in­creased cred­it loss­es and the over­all de­cline in busi­ness ac­tiv­i­ty.”

Dur­ing this pe­ri­od, De­laney said that the bank con­tin­ues to place em­pha­sis on sup­port­ing its clients as well as re­duc­ing its dis­cre­tionary ex­pen­di­tures.

On an ad­just­ed ba­sis, De­laney ar­gued that net in­come was US $27.7 mil­lion (TT $187.9) af­ter ad­just­ments for US $12.5 mil­lion (TT $84.8 mil­lion) in items of note re­lat­ing to US $14 mil­lion (TT $95 mil­lion) of pro­vi­sion for cred­it loss­es and re­lat­ed in­come tax cred­its of US $1.5 mil­lion (TT $10.2 mil­lion).

The CEO dis­closed that the in­cre­men­tal pro­vi­sion for cred­it loss­es re­flects up­dat­ed for­ward-look­ing views of prob­a­bil­i­ty of de­faults, loss-giv­en de­faults and macro-eco­nom­ic fore­casts, based on a more re­cent glob­al eco­nom­ic out­look due to the im­pact from COVID-19.

For the nine months end­ed 31 Ju­ly, 2020 the bank in­curred a net loss US $43 mil­lion (TT $291.7 mil­lion).

How­ev­er, De­laney not­ed that ad­just­ed net in­come from the nine months end­ed 31 Ju­ly, 2020 was US $112.2 mil­lion (TT $761.2 mil­lion), down 8.2 per cent com­pared to the same pe­ri­od last year of US $122.2 mil­lion (TT $829 mil­lion).

FCIB re­vealed, Year-to-Date (YTD) Net In­come was ad­just­ed for pro­vi­sion for cred­it loss­es of US $113.6 mil­lion (TT $770.7 mil­lion), good­will im­pair­ment charge of US $50.7 mil­lion (TT $344 mil­lion) and in­come tax cred­its of US -$9.1 mil­lion (TT $ -61.7 mil­lion).

Un­ad­just­ed, the fall in net in­come rep­re­sents a 135 per cent drop when com­pared to the pre­vi­ous year.

At the end of the third quar­ter, De­laney ex­pressed that the Bank’s Tier 1 and Cap­i­tal ra­tios are 12.6 per cent and 14.4 per cent re­spec­tive­ly, which re­main in ex­cess of the ap­plic­a­ble reg­u­la­to­ry re­quire­ments.

She added that the bank’s Di­rec­tors have ap­proved a reg­u­lar quar­ter­ly div­i­dend of one point two five cents (US $0.0125) per share (TT $0.085) ago be paid on Oc­to­ber 9, 2020 to the share­hold­ers of record as of Sept 10, 2020.

—Ky­ron Reg­is


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