Banking, finance, and taxes

First Caribbean International Bank Gears Up for IPO

Chris Lange

Published: April 2, 2018 11:55 am

Last Updated: January 12, 2020 1:51 am

First Caribbean International Bank has filed an amended F-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, although the offering is valued up to $100 million, but this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol FCI.

The underwriters for the offering are Barclays, CIBC Capital Markets, Keefe Bruyette & Woods, Raymond James, Sandler O’Neill + Partners, UBS Investment Bank and Wells Fargo.

This is a leading financial institution operating throughout the English- and Dutch-speaking Caribbean with a strong balance sheet and regionally leading digital banking capabilities. Its team, extensive branch network, ongoing investments in technology and unwavering client focus are competitive differentiators that enable this bank to maintain leadership in the Caribbean banking sector, address the needs of clients, and meet strategic and financial objectives.

In addition to its primary markets, the bank operates in key growth markets of Jamaica, Trinidad and Tobago and certain countries in the Dutch Caribbean, primarily Curaçao and Aruba. In total, it has a presence in 17 countries and territories.

Through three core business segments — Retail and Business Banking, Corporate and Investment Banking and Wealth Management — the company provides individual and business clients with a full range of products and services, including deposits, loans, credit cards, foreign exchange, online and mobile banking, fund administration and trust services.

In the filing, the company described its finances as follows:

We have delivered strong operating performance and financial results over the last three years. Net income increased from $113.1 million in 2015 to $127.6 million in 2017, representing a CAGR of 6%. Adjusted net income increased from $103.5 million in 2015 to $131.5 million in 2017, representing a CAGR of 13%. Additionally, our growing loan book has led to consistently strong profitability metrics, with an average ROAA of 1.2%, an average adjusted return on average assets (ROAA) of 1.1%, an average return on average tangible common equity (ROATCE) of 11.0% and an average adjusted ROATCE of 11.6% over the past three years. Furthermore, net income decreased from $32.4 million in the first quarter of 2017 to $4.2 million in the first quarter of 2018 and adjusted net income increased from $30.2 million to $30.9 million over the same period.

The company will not receive any proceeds from the offering. Instead, the selling shareholders will receive all the proceeds.