FirstCaribbean International Bank Limited (FCIB) will be closing its branch in the Commonwealth of Dominica on January 31, 2023, as it seeks to simplify its structure.

The assets for FCIB’s Dominican branch were supposed to have been sold to National Bank of Dominica Limited (NBD), but the bank indicated earlier this year that a change in its strategic direction did not include an acquisition at the time. NBD had acquired the assets of the Royal Bank of Canada in April 2021 before it was announced in October 2021 that it was expected to acquire the assets of the Dominican branch.

With the closure to occur at the end of the first quarter subject to regulatory approval, Dominica will only have two commercial banks remaining. Republic Financial Holdings Limited, the owner of all Republic banks in the Eastern Caribbean, acquired the operations of seven Scotiabank operations in the Eastern Caribbean in October 2019.

“Decisions like this are never easy, and never taken lightly, as we are mindful of the impact on our employees and our customers. Until we can put the necessary arrangements in place, we will continue doing what we’ve always done — helping our clients to make the right decision to maintain their financial health. Our focus is also on supporting our employees through this time of transition. We will continue to keep all our stakeholders apprised of the developments as they unfold,” said managing director for Barbados and the OECS (Organisation of Eastern Caribbean States), Donna Wellington, in a news release.

The commercial banking sector in the Commonwealth of Dominica had total assets of EC$2.31 billion ($131.19 billion) as of August with EC$1.15 billion in loans and advances, overdrafts, repos, bills and EC$2 billion in deposits.

The sale of FCIB’s banking assets in Grenada is ongoing as they discuss and negotiate key aspects of the transaction with Grenada Co-Operative Bank Limited. The Canadian Imperial Bank of Commerce (CIBC) said in its third quarter report, “The parties continue to pursue the regulatory approvals required to complete the transaction in Grenada, which may require amendments to the proposed transaction.”

FCIB (Cayman) completed the sale of its Aruban banking operations to Aruba Bank NV on February 25 for approximately US$6.8 million while the sales for assets in the St Vincent and the Grenadines, and St Kitts and Nevis received regulatory approval in July from the Eastern Caribbean Central Bank. The sales are expected to close by the third quarter (May to July) of 2023. The St Vincent sale is with The Bank of St Vincent & Grenadines Limited while the St Kitts sale is with St Kitts-Nevis-Anguilla National Bank Limited.

The assets relating to St Kitts, St Vincent, Grenada and the Commonwealth of Dominica were to be sold for approximately US$13.9 million as per the October 2021 release. The assets held for sale relating to five territories were worth US$657.12 million in October 2021 with customer deposits of US$653.18 million. They earned US$20.94 million in interest income and had a loss before taxation of US$7.23 million.

CIBC attempted to sell 66.7 per cent of its ownership in FCIB for US$797 million to Colombian-based GNB Financial Group Limited, but it was rejected by regulators in February 2021. The deal would have left CIBC with a 24.9 per cent stake after the proposed initial public offering on the New York Stock Exchange was withdrawn in April 2018. CIBC owns 91.7 per cent of FCIB through its wholly owned subsidiary CIBC Investments (Cayman) Limited.

Despite the hurdles over the nine months up to July, FCIB’s total revenue grew eight per cent to US$432.87 million with net profit from continuing operations up 44 per cent to US$128.89 million. Equity attributable to shareholders increased 40 per cent to US$122.55 million. Total assets year over year are up nine per cent to US$13.60 billion with equity attributable to shareholders up 11 per cent to US$1.17 billion.

FCIB paid a dividend of US$0.01 last month with the total payments of US$0.04 for the financial year totalling US$63.08 million. FCIB’s share price on the Trinidad and Tobago Stock Exchange is down 19 per cent to TT$5.00.

With the retirement of former chief executive officer Colette Delaney on October 31, Mark St Hill became the CEO on November 1 subject to regulatory approval. Pim van der Burg was appointed to the new position of chief commercial officer on November 1 who will join the board of directors on November 1 subject to regulatory approval as well. This comes as managing director of wealth management Dan Wright retires on February 28, 2023, with der Burg assuming his responsibilities on September 5 as Wright transitions to retirement.