| Type | Public company |
|---|---|
| Industry | Bank |
| Founded | Saint Michael, Barbados - 2005 |
| Headquarters | Warrens, Saint Michael |
| Key people | Michael Mansoor - Chairman John Orr - CEO Francesca Shaw - CFO |
| Products | Financial services |
| Website | http://www.firstcaribbean.com/ |
CIBC FirstCaribbean International Bank (FCIB) (TTSE: FCI), (BSE:FCI) is a publicly held Caribbean financial services company based in Barbados. Formed in 2002 as a merge the Caribbean operations of Barclays Bank PLC and 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."[1]
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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 23rd, 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.
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.
FirstCaribbean has branches in the following Caribbean countries:[2]
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.
FirstCaribbean is a member of various Bankers Associations through-out 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:
FCIB is listed on the stock exchanges of Barbados, Jamaica, Trinidad and Tobago, Bahamas, as well as the Eastern Caribbean Securities Exchange.
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