CIBC FirstCaribbean International Bank

For other banks with a similar name, see First Bank (disambiguation).
CIBC FirstCaribbean International Bank
Public
Traded as BSE: FCI
TTSE: FCI
Industry Bank
Founded Saint Michael, Barbados - 2005
Headquarters Warrens, Saint Michael
Key people
 Michael Mansoor - Chairman
Rik Parkhill - CEO
Brian Lee - CFO
Products Financial services
$255.3 million[1] USD (2007)
Owner Canadian Imperial Bank of Commerce
Number of employees
 3 400
Website http://www.cibcfcib.com/
CIBC FirstCaribbean International Bank branch in Bridgetown, Barbados.
CIBC FirstCaribbean's head office, Warrens, St. Michael.

CIBC FirstCaribbean International Bank (FCIB) is a publicly held Caribbean financial services company based in Barbados. Formed in 2002 as a merge the Caribbean operations of Barclays Bank and the Canadian Imperial Bank of Commerce (CIBC), in March 2006 both CIBC and Barclays announced that Barclays wished to exercise their option to exit the Caribbean venture completely resulting in CIBC gaining majority-control of the bank. in June 2011 it was announced the bank would be renamed CIBC FirstCaribbean Bank "to be more closely aligned to the CIBC brand, while still maintaining the FirstCaribbean name and local identity."[2]

History

Prior to 2002, the operations of what is now FirstCaribbean were run as the separate businesses of Barclays Bank and CIBC West Indies, part of CIBC's group of companies. Barclays had been active in the region since 1837 and CIBC's foray into the region began with branches in Jamaica in 1920.

The deal closed on December 23, as expected near the end of 2006. is awaiting approval by several Caribbean regional regulators, as well as the securities exchanges in the Caribbean where majority ownership thresholds of 50% + 1 may have been crossed for the publicly held bank.

CIBC shares acquisition

On March 13, 2006, CIBC and Barclays announced that they had signed a non-binding letter of intent enabling CIBC to acquire 43.7% of the shares of FCIB from Barclays. Upon completion of the transaction, CIBC's ownership was to increase to approximately 87.4% of FCIB.

CIBC announced on 22 December 2006 that it had purchased 599,401,230 shares of FirstCaribbean from Barclays for US$988,652,389 (representing US$1.62 per share plus accrued but unpaid dividends). Barclays also retained their option to tender all or a part of the remaining holdings of 66,600,137 shares. Thereafter, CIBC proceeded with a mandatory purchase offer to all remaining shareholders at US$1.62 per share and wound up holding 91.5% of First Caribbean International Bank.

FirstCaribbean is not the only Canadian controlled bank in the region: Scotiabank, and the Royal Bank of Canada also have extensive commercial banking businesses in the region and treat the region as a native market.

Since the CIBC acquisition, the results of FirstCaribbean have deteriorated significantly. The most recent annual results (2010) saw revenues, profitability, assets, and deposits down significantly. The 2010 net income of $157 million is almost $100 million lower than the 2007 results.

Locations

FirstCaribbean has branches in the following Caribbean countries:[3]

Offshore

As well as providing financial services to residents of the Caribbean countries where it operates, FirstCaribbean is also a provider of offshore financial services to non-residents.

Membership

FirstCaribbean is a member of various Bankers Associations throughout the Caribbean region. Additionally FirstCaribbean also offers a co-branded University of the West Indies VISA-Classic, Gold or Platinum credit card for students, alumni and staff. FCIB is also a member of:

Stock Exchange listings

FCIB is listed on the stock exchanges of Barbados, Jamaica, Trinidad and Tobago, Bahamas, as well as the Eastern Caribbean Securities Exchange.

Largest competitors

References

  1. ↑ "Annual Report (2007), $157 million (2010)" (PDF). FirstCaribbean Group. Retrieved 2008-07-21.
  2. ↑ "FirstCaribbean to be branded as 'CIBC FirstCaribbean International Bank'". Barbados Advocate. 21 June 2011. Retrieved 22 June 2011.
  3. ↑ Map of CIBC operations in the Caribbean & Latin America

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