by Geralyn Edward

EXPECT a major come-back from FirstCaribbean International Bank in Barbados following a major slump in profits in 2005.

Chief executive officer Oliver Jordan explained that a number of events, some of them one-off, contributed to the not-so-flattering result posted last year and recently released in the PricewaterhouseCoopers Barbados Banking Industry 2005 Performance Highlights. The publication showed FirstCaribbean's profits down a dramatic 52 per cent.

Net income last year was $19.8 million, down from $41.6 million in 2004.

Jordan told BARBADOS BUSINESS AUTHORITY on Friday the situation would be much different at the end of 2006 as the financial institution aggressively goes after all sections of the market.

"Our net interest income declined a lot, due mainly to increases in the minimum savings rates which are set by the Central Bank. We had increases of over 200 basis points over the previous year and that drove the interest expenses significantly," he said.

In addition, he disclosed that some remaining charges associated with
the Barclays/CIBC merger were added last year.

And with FirstCaribbean being among the most cash-rich if the island's banks, Jordan said the increases in minimum interest on deposits affected it severely.

However, Jordan asserted "the merger days are behind us . . . and our major focus is on transforming the business " while reclaiming its position as the leading bank in the country.

"For the size of bank that we are in Barbados, our expectations are higher – and that is what I'm busy working on."

Apart from credit cards and consumer loans, Jordan said, FirstCaribbean would also be going after more of the mortgage market as well as corporate and Government financing.