FirstCaribbean International Bank (Bahamas) Limited

Managing DirectorSharon E. BrownManaging Director’s ReviewIn 2009, strong management and a prudent approach to riskcontributed to FirstCaribbean Bahamas’ winning the Bank ofthe Year Award for The Bahamas from the world-renownedFinancial Times. Fiscal prudence and the support of employeesand customers during one of the most difficult periods facedby the banking community in decades make this fourthconsecutive award and recognition particularly symbolic.Financial PerformanceDespite the very challenging global environment impactingthe economies of The Bahamas and the Turks & CaicosIslands, the Bank has delivered quite commendable financialresults. This reflects the resilience of our core business, ourrobust risk policies and practices, as well as some significantcapital market opportunities. Net income of $78.6 million or65.4 cents per share was delivered in 2009, $5.3million and4.4 cents less than 2008. The securities trading portfolio wassold in 2009 and despite the limited new opportunities, loansand advances to customers were stable year over year.Retail and Wealth Management BusinessIn 2009, we focused on building and enhancing relationshipswith our customers. We re-engineered our customer servicedelivery to enhance the customer’s experience and improvedand expanded our product offering. Our loan processwas restructured and visible improvements made to loanturnaround time. Additionally, we launched a new customercentricdeposit product suite providing greater product choiceand opportunities to save. On the credit product side, we nowoffer more bundled products. We successfully launched theBritish Airways Visa Platinum Credit Card, and our electronicchannels were enhanced with a significantly improved lookand feel to our Internet Banking. Our customers in the Turks &Caicos Islands also benefited from these new enhancementsand improvements and their branch network was expandedwith the addition of a second location in Providenciales – ourGrace Bay Branch.Corporate Investment BankingDespite a decrease in the inflow of foreign direct investmentsand the contraction in domestic economic activity, CorporateInvestment Banking performed solidly in developinginnovative solutions to meet our clients’ needs. Therealignment of the delivery of all products and services forthe corporate customer under Corporate Investment Bankinghas strengthened the depth of our offering and servicesto our corporate clients. Significant transactions, in 2009include closing the Government of The Bahamas US$200million syndicated loan facility with Royal Bank of Canada;leading the Bahamas Electricity Corporation’s US$211 millionsyndicated loan; and Placement Agents for the Nassau AirportDevelopment’s $42 million in Senior Notes and $70 millionParticipating Debt Issue.Our newly-implemented Senior Coverage Model, whichprovides our Government and large corporate clients witha team comprising the Director, dedicated RelationshipManagers and Sector and Product Specialists, is working wellas we look to serve our clients’ unique needs and provideinnovative solutions during these challenging times.Community PartnershipIn 2009, our community partnerships and sponsorshipcontinued with particular focus on youth, education andthe environment. The Bank made a substantial donation tothe Downtown Nassau Revitalisation Project, which aims toredevelop the “City of Nassau.” Our sponsorship of both theCollege of The Bahamas’ President’s Scholars Programme andThe Bahamas National Trust’s Discovery Club Programmecontinued. FirstCaribbean-sponsored Illusions – a JuniorAchievement Company – performed well, receiving severalawards at the close of the JA year. In 2009, four distinguishedUnsung Heroes in the persons of Jenny Pinder and IsabellaNewton from Grand Bahama; and Sheila Culmer and CarletonWilliams from Nassau, were rewarded. The Bank also donatedto several other charities, and cultural and sporting activities.Our PeopleOur people make our institution and we are committed toproviding a stimulating and enjoyable work environment.Through our “One Team, One Bank” initiative, we continueto foster camaraderie, and a strong and friendly competitiveenvironment. Over the past year, we also focused onleadership development and skills enhancement. Our staffcontinued to excel in performance and service with twomembers recognised as Regional Helpful Partner Player ofthe Series Winners – Peter Butler, Technical Support Analystand Brannita Bowles, Customer Service Representative, JFKBranch. On a quarterly basis, several staff are identified andrewarded for performance excellence.AppreciationAs I retire from the position as Managing Director, I extendthanks, gratitude and appreciation to our valued staff andloyal customers for their many years of support. It is throughtheir continuing support that such commendable financialresults and international awards have been achieved. I amalso very appreciative of our many shareholders who continueto demonstrate their confidence in the Bank. I also say a veryspecial thank you to our Board of Directors for their wisecounsel and strong governance oversight.Sharon E. BrownManaging Director – Bahamas and Turks & Caicos4