CIBC FirstCaribbean International Bank
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Formerly called
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FirstCarribbean International Bank |
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| Subsidiary | |
| Industry | Bank |
| Founded | 2002 in Saint Michael, Barbados |
| Headquarters | Warrens, Saint Michael |
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Key people
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Michael Mansoor - Chairman Rik Parkhill - CEO Brian Lee - CFO |
| Products | Financial services |
| $255.3 millionUSD (2007) | |
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Number of employees
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3 400 |
| Parent | Canadian Imperial Bank of Commerce |
| Website | www |
CIBC FirstCaribbean International Bank (FCIB) is a financial services company based in Barbados and a subsidiary of the Canadian Imperial Bank of Commerce (CIBC). Formed in 2002 as FirstCaribbean International Bank through the merger of the Caribbean operations of Barclays Bank and 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."
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 Jamaica in 1920.
The deal closed on December 23, 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.
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, 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.
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Wikipedia