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