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FirstCaribbean reports $61.9M in net income

FirstCaribbean International Bank is reporting$61.9 million in net income or the year ended October 31, 2010, a 21 percent decline compared to the same period in 2009.

The bank was unable to build on the$78.6 million figure recorded during the 2009 fiscal year, indicating in its latest report that”continuing adverse economic conditions”affected its performance.

“Total revenues were down by$0.9 million or 1 percent compared to the prior year, driven by the decline in net interest income stemming from lower average loan and securities volumes and yields; partially offset by lower cost of funds and lower mark to market losses,”said a statement from the financial report.

“Operating expenses increased by$6 million or 8 percent mainly due to the reimbursement of the bank’s share of head office support costs and occupancy charges. Loan loss impairment expenses increased by$11.7 million due to the prevailing adverse economic conditions.”

Commenting on the results, Managing Director of FirstCaribbean Bahamas Marie Rodland-Allen told Guardian Business yesterday,”While our financial results largely reflect the tough economic environment in which we operate, the bank maintains strong capital ratios which are well above what is required by the Central Bank; and while it is difficult to predict when we will see a rebound in the economy, we expect to see an improving trend in our business in 2011″.

This was also echoed in the bank’s financial report.”The bank remains in a solid financial position with both the Tier 1 and total capital ratios being 21 percent, despite the decline in net income,”said the report.

Total assets for the bank decreased 4.3 percent to$3.5 billion from$3.7 billion in 2009. Securities increased 18.4 percent to$687 million from$580 million, and loans and advances to customers dropped 4.8 percent to$2.4 billion from$2.5 billion year-on-year.

Total liabilities decreased 6.1 percent to$2.8 billion from$3 billion in 2009, total deposits dropped 7.3 percent to$2.7 billion compared to$2.9 billion during the previous fiscal year, and other borrowed funds rose to 28.7 percent from$54.1 million to$75.9 million.

Net income for the bank decreased for the fourth quarter year-on-year, dropping from$29.4 million to$11.3 million. The 61 percent drop in the three months ended October 31, 2009 negated the progress the financial institution made in the third quarter, where net income rose by$1.3 million to$50.5 million.

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