FirstCaribbean International Bank
Encyclopedia
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 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."
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.
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.
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:
, Jamaica
, Trinidad and Tobago
, as well as the Eastern Caribbean Securities Exchange
.
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
financial services company based in Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
. Formed in 2002 as a merge the Caribbean operations of Barclays Bank PLC and Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce
The Canadian Imperial Bank of Commerce is one of Canada's chartered banks, fifth largest by deposits. The bank is headquartered at Commerce Court in Toronto, Ontario. CIBC's Institution Number is 010, and its SWIFT code is CIBCCATT....
(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."
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 JamaicaJamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
in 1920.
- In March 2006, CIBC officials announced their intention of buying majority control of their publicly held CaribbeanCaribbeanThe Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
joint venture the FirstCaribbean International Bank. The deal costing just over US$1billion (Bds$2 billion) would purchase the current 43.7% owned by Barclays Bank PLC and would raise CIBC's current ownership to 87.4%, from 43.7%. Upon closure of the deal, the top four Caribbean commercial banks would be consolidated merely to a top three, with those being ScotiabankScotiabankThe Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
, the FirstCaribbean International Bank, and the Royal Bank of CanadaRoyal Bank of CanadaThe Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
with a possible distant fourth-place bank varying in each territory. Following the deal, the regional head-office for FCI is expected to remain located in BarbadosBarbadosBarbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
, with that regional centre continuing to report to the Toronto CIBC head-office. http://www.caribbeannetnews.com/cgi-script/csArticles/articles/000008/000838.htm, http://www.guardian.co.tt/bussguardian12.html, (Final agreement for sale).
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.
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
Scotiabank
The Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
, and the Royal Bank of Canada
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
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: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 through-out the CaribbeanCaribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
region. Additionally FirstCaribbean also offers a co-branded University of the West Indies
University of the West Indies
The University of the West Indies , is an autonomous regional institution supported by and serving 17 English-speaking countries and territories in the Caribbean: Anguilla, Antigua and Barbuda, The Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Dominica,...
VISA-Classic, Gold or Platinum credit card for students, alumni and staff. FCIB is also a member of:
- MasterCard Worldwide
- VISAVISA (credit card)Visa Inc. is an American multinational financial services corporation headquartered on 595 Market Street, Financial District in San Francisco, California, United States, although much of the company's staff is based in Foster City, California. It facilitates electronic funds transfers throughout...
International - MaestroMaestro (debit card)Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
ATM Network - CarIFSCarIFSCaribbean Integrated Financial Services Inc. is a Barbados-based ABM-network provider.Using the name CarIFS , the company's offering allows customers of various financial institutions in Barbados to have 24-hour access to cash from their Bank Accounts via any CarIFS affiliated Automated Banking...
ATM Network - MultiLink Network ATM networkhttp://www.multilinkdebit.com/
Stock Exchange listings
FCIB is listed on the stock exchanges of BarbadosBarbados Stock Exchange
The Barbados Stock Exchange or BSE is Barbados' main stock exchange. Its headquarters are in the capital-city Bridgetown.The Barbados Stock Exchange is among the four major regional Caribbean stock exchanges. The other three being the exchanges of Jamaica, the Eastern Caribbean, and Trinidad and...
, Jamaica
Jamaica Stock Exchange
The Jamaica Stock Exchange is the principal stock exchange of Jamaica. It is known as the JSE. It was founded in 1968 in Kingston, Jamaica and its current executive chairman is Mr Roy Johnson....
, Trinidad and Tobago
Trinidad and Tobago Stock Exchange
The Trinidad and Tobago Stock Exchange is the main stock exchange in the Republic of Trinidad and Tobago. Currently the leading stock exchange in the Caribbean region , the Trinidad and Tobago stock exchange caters mostly to the strong financial position of many indigenous companies incorporated...
, as well as the Eastern Caribbean Securities Exchange
Eastern Caribbean Securities Exchange
The Eastern Caribbean Securities Exchange is the first regional securities market in the Western Hemisphere and a regional Stock exchange, established by the Eastern Caribbean Central Bank to serve the eight member territories of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint...
.
Largest competitors
- Barbados National Bank
- CitibankCitibankCitibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
- National Commercial Bank of Jamaica
- ScotiabankScotiabankThe Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
- RBTT
- Republic Bank of Trinidad and Tobago
- Royal Bank of CanadaRoyal Bank of CanadaThe Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
News and articles
- FirstCaribbean continues to work with regional unions - June 15, 2007: Barbados Advocate
- FirstCaribbean’s finally share tally: CIBC 92%, other shareholders 8% - May 10, 2007: The Broad Street Journal online
- FirstCaribbean to invest US$9m in new Barbados Bank Business Centre - July 4, 2006: Barbados Advocate
- CIBC takes control - March 20, 2006: Trinidad and Tobago Express
- 'Excellent year' for First Caribbean - December 23, 2005: Jamaica Observer daily news
- ABN AMRO’s banking operations in Curaçao to join with FirstCaribbean International Bank - November 24, 2005: Caribbean Net News
- FirstCaribbean exceeds US$4 billion loan mark - Thursday, April 28, 2005: Caribbean Net News