AFTER starting out with US$20 million ($1.75 billion) raise from 150 investors in February 2010 through a private placement, Proven Investments Limited (PIL) has surpassed the US$1 billion ($157.41 billion) threshold in total assets, following the completion of its Fidelity Bank (Cayman) Limited (FBC) acquisition on February 1. The company has also indicated that the entity will be rebranded Proven Bank.

Christopher Williams, co-founder and CEO of Proven Management Limited, however, said there are no plans to enter the banking sector in Jamaica.

“Banking in Jamaica is extremely competitive and we are more comfortable in the international jurisdictions,” Williams told the Jamaica Observer.

“We like the Cayman and the more international jurisdictions, so we are in St Lucia with BOSLIL and with Fidelity Bank in the Cayman. We like those jurisdictions, which tend to get a lot of international capital and we like that market, so we are going to stay there,” he continued.

Fidelity Bank (Cayman) Limited is a financial services company incorporated in the Cayman Islands and is licensed under the Bank and Trust Companies Act as a Category A Bank to carry on banking business in the Cayman Islands. With two branches in Grand Cayman, Fidelity has operated since 1980 in providing banking solutions such as deposit accounts and credit cards to domestic and international clients. Fidelity had US$354.1 million in total assets up to September 2020.

Category A banks with a retail presence in the Cayman Islands had US$16.11 billion in total assets with US$6.06 billion in net loans and advances for 2020. These banks generated US$243.40 million in operating income and delivered $122.45 million in net income in 2020.

“Fidelity Bank (Cayman), with the backing of the Proven Group, is uniquely positioned to provide the catalyst and funding for major development and corporate projects throughout Cayman, which we believe is poised for further growth in the near future. We think there’s a lot of potential in Cayman and are quite excited to play our part in growing the territory. The bank’s current staff will continue to seamlessly provide a customer focused alternative that will delight our valued clients and satisfy their day-to-day banking needs,” stated Proven’s head of banking and wealth division Johann Heaven in an interview with the Caribbean Business Report. Heaven is also the chief executive officer of PIL’s wealth management subsidiary Proven Wealth Limited.

On completion of the acquisition Williams tweeted “dare to dream” based on the progression of PIL’s growth to date. PIL’s total assets up to September 2021 was US$741.05 million ($116.35 billion) with the latest acquisition expected to propel the asset base past US$1.095 billion when the 2022 audited financials are published at the end of May.

Heaven confirmed that Garry Sinclair has been appointed chairman of FBC with Williams to serve as a director of the bank. Co-founder Peter Bunting and Chris Williams were appointed to the roles of chairman and director of Roberts Manufacturing Company Limited after completing the US$21.45 million acquisition in June 2021. PIL also acquired Heritage Education Funds International Inc in October for an undisclosed sum. FBC was acquired from Fidelity Bank & Trust International Limited by PIL for US$31.84 million ($5.01 billion).

Though Heaven didn’t confirm the funding means for the FBC acquisition, PIL received a CariBBB and jmA credit rating from the Caribbean Information and Credit Rating Services Limited in November, which was indicative of the company looking to raise debt. PIL raised US$29.04 million in an additional public offering in February 2021.

Proven will be rebranding FBC as part of its group effort to bring the various subsidiaries under a common brand and extract greater efficiencies from their operations. This will be PIL’s second banking subsidiary after acquiring Bank of St Lucia International Limited (BOSLIL) in March 2017 for US$12.6 million. BOSLIL earned 29 per cent more in net profit to US$6.26 million for the 2021 financial year.

“Yes, this will be the first company to be under the rebranding and will be renamed Proven Bank (Cayman) Limited. This will be the first step in rebranding other subsidiaries within the Proven financial group. For those more established brands like BOSLIL, we obviously have to do a proper assessment before we rush out and change the brand. We have to ensure consistency and buy in from the community and our customers,” Heaven replied.

The acquisition of FBC makes it the second business PIL owns in the Cayman Islands after International Financial Planning Limited. PIL is also developing The Lagoons on Omega Drive in Grand Cayman where it has a 40 per cent stake. The development is set to be completed by July.

“It’s part of our strategic drive to grow our financial services and banking footprint across the Caribbean. This is the second step in that drive picking up Fidelity in Cayman, and we’re actively looking for acquisitions throughout the Caribbean. We’re looking at many territories to diversify the portfolio in and that’s the push to have us in various territories so that there isn’t overreliance on any one territory to be successful,” Heaven explained about the company’s greater exposure to the Cayman Islands.

PIL’s consolidated net revenue rose by 26 per cent for the first six months to US$17.65 million while its net profit attributable to shareholders grew by 25 per cent to US$6 million. The company’s board is set to meet next Wednesday to consider a dividend payment for March.

“The plan for this year is consolidation of all the acquisitions we’ve done over the past year. It’s been a busy year for us with three acquisitions in one financial year. We have consolidation within the group, seeking out efficiencies across the various subsidiaries in Proven and optimising current structure and infrastructure to maximise profits. That is definitely the key driver within the next financial year,” Heaven closed.