Businessuite #6 Caribbean Ranked Public Company for 2015
CIBC First Caribbean International Bank
“The Mission – Deepening Customer Relationships And Enhancing Value To The Client.”

Market/Stock Exchange: Barbados Stock Exchange

Company: CIBC First Caribbean International Bank

2016 Rank
2015 Rank: #6
2014 Rank: #13

Non-executive Chairman: Mr. David Ritch

Chief Executive Officer: Rik Parkhill

Address: The Michael Mansoor Building, Warrens, St. Michael.Barbados
Website: https://www.cibc.com/fcib/about-us/locations/barbados.html
Annual Reports and Performance http://bse.com.bb/reports/trading-reports

Company Profile:
CIBC FirstCaribbean International Bank is a relationship bank offering a full range of market-leading financial services through our Wholesale Banking, Retail & Business Banking and Wealth Management segments. We are located in seventeen (17) countries around the Caribbean, providing the banking services that matter to our customers through approximately 3,100 employees, in 66 branches. We are one of the largest regionally-listed financial services institutions in the English and Dutch speaking Caribbean, with over US$10.8 billion in assets and market capitalization of US $1.4 billion. The face of banking is changing throughout the world and CIBC FirstCaribbean intends to lead these changes with the expertise, integrity and knowledge of banking that almost 250 years of combined experience in the Caribbean brings.

Business Held Steadfast To Their Mission, Deepening Customer Relationships
And Enhancing Value To The Client.

The following edited extract was taken from the company’s 2014 Annual Report to shareholders.

The Group continues to focus on five strategic priorities to address market trends:
1. Cultivating deeper relationships with its clients across its business;
2. Focusing on value for its clients through understanding their need;
3. Competing in businesses where the Group can leverage its expertise to add differentiated value;
4. Pursuing risk-controlled growth in the region; and
5. Continuously investing in its client base, people and infrastructure.

Ever mindful that a key contributor to our business success rests in the advocacy of our clients, in 2014 our lines of business held steadfast to their mission of deepening customer relationships and enhancing value to the client.

Net loss for the year was $151 million, compared to a net loss of $22 million in 2013.

This year’s results were affected by an increase in loan loss impairment, impairment charge on goodwill, declining net interest income and operating income which was offset by decreased operating expenses. The region continues to face significant economic challenges and this is reflected in the protracted slowdown in business activity and increased rates of loan delinquency.

The results for both years were affected by certain significant items as follows:

2014
•$116 million in impairment charge on goodwill in light of persistently challenging economic conditions and financial projections for conditions going forward.

• $47 million decrease in operating expenses which includes $41 million reduction in salaries and benefits related to the restructuring program in 2013 as well as overall reduction in discretionary spending due to cost cutting measures.

• $55 million increase in loan loss impairment reflecting further deterioration and updates to collateral values underlying secured loans.

• $4 million decrease in net interest income largely due to sustained downward pressure on loan volumes in key markets.

• $3 million increase in operating income driven by higher service based fees and foreign exchange commissions.

2013

• $54 million increase in operating expenses which includes $38 million related to restructuring expenses.

• $31 million increase in loan loss impairment reflecting further deterioration and updates to key assumptions.

• $24 million decrease in net interest income largely due to sustained downward pressure on loan volumes in key markets.

• $11 million increase in operating income driven by foreign exchange commissions and securities gains.

Total revenue is down year on year by $2 million mainly due to lower net interest income of $4 million, offset by higher operating income of $3 million.

In Retail & Business Banking, we have:
• Responded to our customers’ needs by offering them a onestop shop in several of our markets through the introduction of Loan & Mortgage Centres. The rolling out of this new customer contact point will continue in the new fiscal and will foster the deepening of our client relationships by providing an easily identifiable point of contact for our clients to meet their personal and financial objectives.

• Continued the enhancement of our ABM network through the provision of new machines, including dual-currency machines where possible, in some markets and the refurbishment of machines in the rest.

• Enhanced our offering to Business Banking customers. During the year we launched our enhanced Business Banking product including the introduction of business planning tools to assist our customers in managing their businesses along with adding further value through a series of client workshops conducted across the region. We continue to train our staff with a view to increasing their knowledge and skill level to meet the needs of today’s customer.

In Wealth Management, we have:

• Successfully opened our first Private Wealth Management (PWM) office in The Cayman Islands, catering to high and ultra-high net worth individuals with unique needs through customized solutions.

• CIBC Bank & Trust (Cayman) launched Discretionary Portfolio Management services for our Trust and PWM clients.

• We have successfully launched our Fund Administration business in the Bahamas leveraging the strengths and capabilities of our established Cayman business.

• Additionally, we successfully implemented the Wealth Management Automation Project in support of our local securities businesses in Barbados and Jamaica, increasing efficiency and significantly improving our client reporting capabilities.

In Wholesale Banking, we have:
• Deepened our client relationships and leveraged our broader global firm. Despite a challenging economic environment, we successfully arranged and led financings of over US$1.75 billion for our clients across the Caribbean in a broad range of industries including Renewable Energy, Infrastructure, Utilities, Communications, Transportation and Manufacturing.

• Focused on continuing to provide an exceptional client experience by streamlining internal processes and realigning to ensure appropriate support to enable our front-line personnel to provide superior, value-added solutions to our clients.

• Successfully hosted our 2nd annual Infrastructure Conference held in Port of Spain, Trinidad in June 2014 under the theme “Driving Caribbean Infrastructure Forward”.
We were successful in bringing together experts and relevant stakeholders to address this important aspect of regional development. The conference underscored the importance of continued partnership between multilaterals and the private and public sectors to create an enabling environment for infrastructure opportunities in areas such as energy, ports and health care, taking into consideration the regional economic challenges. BM

Mr. David Ritch: FirstCaribbean International Bank announced the appointment of Mr. David Ritch as its new non-executive Chairman. The appointment took effect from 13th December 2013. Mr. David Ritch, is Senior Partner in the law firm of Ritch & Conolly in the Cayman Islands. He was admitted in 1976, in England as Barrister-at-Law and in the Cayman Islands as an Attorney-at-Law. He is a graduate of the University of the West Indies, (LL.B) (Hons), Inns of Court School of Laws, Inner Temple, London, England. He has served as a Clerk of Courts, Crown Counsel and Senior Crown Counsel with the Cayman Islands Government from January 1977 – November 1979. Mr. Ritch is a Past President of the Cayman Islands Law Society.