SHAREHOLDERS of FirstCaribbean International Bank have been given an update on the status of the integration of Barclays Bank and CIBC. Charles Pink, CEO of FirstCaribbean, has told the bankﾴs first annual meeting of shareholders that it is still in the process of combining its operations over the 15 countries in which it now operates. Barclays and CIBC were merged to form FirstCaribbean.
The change-over to FirstCaribbean is being done in two stages, the first is the physical look of the branches and the signage, while the second is the total combination of the Bankﾴs technology and information systems.
Throughout the region, this process is scheduled to take up to two years.
In Barbados, the first of these stages is scheduled for September 2003 when customers will see a change in the visual identity of the branches to the gold and blue of the FirstCaribbean brand. The second phase is scheduled to take place by early 2004 when the technology that allows all branches of the two heritage banks to operate as a single entity will become fully operational. At that time, customers will be able to enter any branch of the bank to transact business.
ﾓOur overall journey of integration will take some two years and we have a well developed plan to ensure we achieve our targets,ﾔ explained Pink.
ﾓFor the sake of our customers, employees and shareholders, we will implement our transformation with care and prudence, in particular aiming for minimal disruption for our customers. We will communicate extensively to ensure all our stakeholders are kept fully informed as we make changes.ﾔ
ﾓBy the middle of 2004, the integration of our two founding banks will be complete,ﾔ concluded Mansoor.
ﾓAt that time, FirstCaribbean will offer a unique and comprehensive product suite, using one technology platform to best serve all our customers ﾖ personal, corporate and international ﾖ from Belize to Barbados to The Bahamas.ﾔ
The meeting was held on Tuesday at the Sherbourne Conference Centre to report on the financial health of the company and update shareholders on the progress of the integration of its two heritage banks.
For the year 2002, FirstCaribbean reported a pro forma combined net income of BBD$ 223.2 million for both heritage banks, down from the previous yearﾴs income of BBD$ 280.1 million. Demonstrating rigid expense controls, non-interest expenses remained flat at BBD$459.9 million.
ﾓThe performance of both legacy banks on a stand alone basis was negatively affected by historically low interest rates and compression of net interest margins, declining rates of growth across the region and slackening demand, and a number of one time items that are related to the combination,ﾔ explained FirstCaribbeanﾴs Chairman Michael Mansoor.
ﾓA large bank such as ours reflects the macro economic conditions of the countries in which we operate so that real growth depends to a considerable extent on the economic development of our region. However, I am confident that our people will work extremely hard to manage successfully the matters that are within their control and prepare well for major opportunities in the future.ﾔ
Pink also updated on FirstCaribbeanﾴs business strategy, which is based on four key lines of business across the region to serve distinct customer groups.
Retail banking will serve personal customers with a complete suite of savings, borrowing and investment products, while corporate banking will offer unique products and services to small and medium businesses and commercial clients.
Additionally, the international banking segment and the large corporate and capital markets segment will serve the unique needs of their distinct customers groups.
Four resolutions presented to the shareholders relating to adoption of the Auditorﾴs Report, adoption of the financial statements, appointment of the auditors, and appointment of the directors, were passed unanimously.
Shareholder meetings for the Bankﾴs two public operating companies, FirstCaribbean Jamaica Limited and FirstCaribbean Bahamas Limited, are planned for April.
FirstCaribbean is the result of the combination of two complementary and leading financial services businesses in the Caribbean ﾖ Barclays Bank PLC and CIBC West Indies Holdings Limited ﾖ with the aim of offering its customers enhanced products and improved and extended access to banking services. FirstCaribbean focuses on the needs of the businesses and people of the Caribbean while delivering the global reach of its founding institutions. FirstCaribbean is publicly traded on the stock exchanges of Barbados, Jamaica, and Trinidad and Tobago, and by market capitalisation is one of the largest locally listed banks in the Caribbean based with approximately US$9 billion in assets, and over 700 000 accounts.
FirstCaribbean operates in 15 countries.
