FirstCaribbean International Bank (Bahamas) Limited
FirstCaribbean International Bank (Bahamas) Limited FirstCaribbean International Bank (Bahamas) Limited
Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)25. Business Segments (Continued)The Credit Card Banking line of business was segregated and merged as follows:• Issuing business was merged as part of R&WM; and• Acquiring business was merged as part of Corporate Banking under CIB.The Capital Markets line of business, along with the Corporate Finance unit of the previous Corporate Banking line ofbusiness were merged to form the Investment Banking unit of CIB to better leverage our resources to meet our clients’needs.Retail and Wealth Management (R&WM)This line of business assists individuals by providing a full range of financial products and services. Clients can access ourservices and products through our network of branches in the Caribbean, as well as, use the convenience of ABMs, InternetBanking, Telephone Banking and Cards (Issuing). Our Wealth Management centres help individuals achieve their financialgoals through an array of investment products, deposit accounts, loans, mortgages and other services.For Personal Wealth Management clients and Domestic clients who meet the Wealth Management criteria, the Bank offerstraditional day-to-day banking services, investment advice, and a relationship management offering of being pro-active onclient needs. The International Mortgage group provides funding in U.S. dollars, and other ‘hard currencies’ typically tonon-residents of The Bahamas seeking to purchase homes for personal/investment use.Corporate Investment Banking (CIB)This line of business comprises two sub-segments: Corporate Banking and Investment Banking.Corporate Banking provides a full range of corporate and commercial banking services, including Cards Merchant Acquiringbusiness, to large and mid-size corporations and small businesses, governments, financial institutions, international tradingcompanies and private wealth vehicles throughout the Caribbean. The Corporate International Wealth unit specializes inproviding banking services to businesses and professional intermediaries who use international financial centres.Investment Banking provides debt and equity capital markets and corporate finance products and services to largecorporations, financial institutions and sovereigns.The Treasury Group (TST) manages the interest rate, foreign exchange and liquidity risk of the Bank. In addition, theTreasury Group conducts foreign exchange transactions on behalf of Bank clients, where possible, and hedges fixed rateloans and investments with interest rate swaps.Transactions between the business segments are on normal commercial terms and conditions.Funds are ordinarily allocated between segments, resulting in funding costs transfers. Interest charged for these funds isbased on the Bank’s funds transfer pricing. There are no other material items of income or expense between the segments.Segment assets and liabilities comprise operating assets and liabilities, being the majority of the balance sheet, but excludeitems such as taxation and intangible assets.Internal charges and transfer pricing adjustments are reflected in the performance of each business.Effective November 1, 2008, the Bank changed its transfer pricing methodology. The comparative year however was notrestated to reflect these changes, as it was deemed impracticable to determine the cumulative effect at the beginning of thecurrent period, of applying the new methodology to the prior period. Consequently, the impact of the new methodologywill be reflected prospectively.52
Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)25. Business Segments (Continued)October 31, 2009Corporate TreasuryRetail Investment Sales& Wealth Banking & Trading Other Eliminations Total$ $ $ $ $ $External revenues 107,338 94,144 45,685 (124) (4,683) 242,360Revenues from other segments (24,330) 6,932 17,398 – – –Total revenues 83,008 101,076 63,083 (124) (4,683) 242,360Net income for the year 26,810 67,258 29,191 (44,622) – 78,637Total assets 1,308,733 1,360,664 1,064,457 186,885 (158,067) 3,762,672Total liabilities 1,179,121 1,406,332 615,061 12,043 (157,067) 3,055,491Other segment itemsCapital expenditure (Note 10) – – – 3,754 – 3,754Depreciation (Note 10) – – – 3,470 – 3,470Loan loss impairment (Note 9) – – – 18,519 – 18,519Corporate TreasuryRetail Investment Sales& Wealth Banking & Trading Other Eliminations Total$ $ $ $ $ $October 31, 2008External revenues 106,469 113,602 76,282 (8,425) (8,310) 279,618Revenues from other segments 28,423 15,439 (43,858) (4) – –Total revenues 134,892 129,041 32,424 (8,429) (8,310) 279,618Net income for the year 55,485 73,843 (8,779) (36,645) – 83,904Total assets 1,372,171 1,365,319 1,472,400 222,538 (294,438) 4,137,990Total liabilities 1,436,648 1,295,582 1,041,921 11,465 (293,438) 3,492,178Other segment itemsCapital expenditure (Note 10) – – – 3,120 – 3,120Depreciation (Note 10) – – – 3,584 – 3,584Loan loss impairment (Note 9) – – – 23,350 – 23,350Geographical segments are set out in Note 26 (C).53
- Page 5 and 6: Executive ChairmanMichael K. Mansoo
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Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)25. Business Segments (Continued)October 31, 2009Corporate TreasuryRetail Investment Sales& Wealth <strong>Bank</strong>ing & Trading Other Eliminations Total$ $ $ $ $ $External revenues 107,338 94,144 45,685 (124) (4,683) 242,360Revenues from other segments (24,330) 6,932 17,398 – – –Total revenues 83,008 101,076 63,083 (124) (4,683) 242,360Net income for the year 26,810 67,258 29,191 (44,622) – 78,637Total assets 1,308,733 1,360,664 1,064,457 186,885 (158,067) 3,762,672Total liabilities 1,179,121 1,406,332 615,061 12,043 (157,067) 3,055,491Other segment itemsCapital expenditure (Note 10) – – – 3,754 – 3,754Depreciation (Note 10) – – – 3,470 – 3,470Loan loss impairment (Note 9) – – – 18,519 – 18,519Corporate TreasuryRetail Investment Sales& Wealth <strong>Bank</strong>ing & Trading Other Eliminations Total$ $ $ $ $ $October 31, 2008External revenues 106,469 113,602 76,282 (8,425) (8,310) 279,618Revenues from other segments 28,423 15,439 (43,858) (4) – –Total revenues 134,892 129,041 32,424 (8,429) (8,310) 279,618Net income for the year 55,485 73,843 (8,779) (36,645) – 83,904Total assets 1,372,171 1,365,319 1,472,400 222,538 (294,438) 4,137,990Total liabilities 1,436,648 1,295,582 1,041,921 11,465 (293,438) 3,492,178Other segment itemsCapital expenditure (Note 10) – – – 3,120 – 3,120Depreciation (Note 10) – – – 3,584 – 3,584Loan loss impairment (Note 9) – – – 23,350 – 23,350Geographical segments are set out in Note 26 (C).53
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