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FCIB profits plummet 21%

A dramatic 63 percent year-on-year increase in loan loss impairment took$12 million from FirstCaribbean International Bank Bahamas'(FCIB)bottom line, resulting in a net income loss of 21 percent for its fiscal year ended October 31, 2010.

The bank still posted net income of$61.9 million and an earnings-per-share figure of 51.5 cents, down 14 percent from 2009’s 65.4 cents. Despite decreases in interest and similar income, total operating income for the period was essentially flat, actually seeing a 0.6 percent increase due to a boost from other operating income. However, the leap in loan loss impairment contributed to a$17.7 million or 19.8 percent increase in total operating expenses.

Total comprehensive income also dropped off significantly for the bank, diving 41 percent to$60.9 million from the previous year’s$103.4 million. A net loss of$0.9 million in available-for-sale security investments for the 2010 fiscal year caused the fall off. The bank posted a$24.8 million gain on this line during fiscal 2009.

Customer deposits shrunk as at October 31, 2010 compared to the previous year-end, contracting 7.3 percent to$2.77 billion. On the other side of the balance sheet, total assets were down 4.35 percent to$3.6 billion. Cash due from banks other than the Central Bank dropped off 51.5 percent by the October 31 year-end to$149.9 million, while loans and deposits to customers fell 4.8 percent to 2.42 billion, from 2009’s 2.54 billion. The value of investment securities across the periods was up 18.5 percent across the periods, coming in at$687.5 million from$580.3 million.

Total equity increased to$730,854 at the 2010 year-end, up 23.6 million or 3.35 percent year-on-year.

FCIB is traded on the Bahamas International Securities Exchange(BISX)under the symbol FCIB. Common shares closed at$9.39 on Friday.

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