BUSINESS MONDAY: ‘STRONG RESULTS’
FIRSTCaribbean International Bank (FCIB) has realised an 18 per cent increase in profits for the second quarter of its 2018 financial year. The Bank’s Chief Executive Officer, Gary Brown, has reported that FCIB recorded a net profit of $43.9 million for the period ended April 30, 2018, compared to $37.2 million for the corresponding period a year ago.
“During the quarter, we continued to deliver strong core results across all three business segments by building a client-focused bank and where possible, improving operational efficiencies,” Mr. Brown said in a review for the period.
He said that the regional economic outlook suggests moderate growth overall, but specific markets could face lower economic activity depending on the level of fiscal imbalance and sustainability of performance in key sectors.
“For the six months ended April, 2018, we report net income of $82.1 million, up $11.2 million or 16 per cent compared to the same period last year,” the CEO reported.
Total revenue was $288.8 million, up $24.2 million or nine per cent from the six months ended April 30, 2017, due to the three per cent growth in performing loans over last year in addition to the benefit from rising US interest rates. “We also saw increases in several categories of operating income, resulting in six per cent growth over the same period last year,” said the FCIB official.
It was further pointed out that operating expenses of $191.8 million were up $9.4 million or five per cent from the same period a year ago, mainly as a result of higher salaries and benefits coupled with increased depreciation and related costs associated with technology investment.
The official pointed out that they have continued efforts to simplify the client experience by providing various technology solutions, while closely managing controllable expenses.
Credit loss expense was $8.5 million, up $1.6 million or 23 per cent from the same period last year. Mr. Brown explained that the increase was primarily driven by a higher allowance for impaired loans.
“However, credit loss expense has improved from the first quarter, down by $2.3 million or 43 per cent. We early adopted International Financial Reporting Standards on November 1, 2017, which resulted in changes to aspects of our credit loss methodology related to financial instruments,” he added.