Issue 3, 2003 August
Full Internet Banking at
Global Bank and London
Bridge Open Financial
ECSE – Investing in Stocks
INSIDE THIS ISSUE
1 Bank Profile – Bank of Antigua Ltd
2 Full Internet Banking at NCB Jamaica The Bank of Antigua (BOA) was incorporated on February 10,
1981 in St. John’s, and opened its doors for business in November
2 Global Bank and London Bridge open Financial Services
of that same year – just one day before Antigua’s independence
3 FCB Divestment on hold from Great Britain. Now a member of the Stanford Financial
Group, BOA is one of eight commercial banks operating in
4 Eastern Caribbean Securities Exchange - Investing in Stocks Antigua.
5 Investing in Bonds
After the Stanford acquisition of the Bank in December 1990,
6 RBTT Breaks Language Barrier With US$104m Loan there was a recapitalization and restructuring of operations,
focusing on increased staff training and development, as well as a
6 Citizens Bank Guyana Interim Report
new technology infrastructure. The results of this have been
7 Citizens Bank Guyana Balance Sheet March 2003 impeccable customer service and the formation of new personal
and business relationships with banking clients.
7 EC Talking VAT
8 First Global Buys out Citibank’s Retail Business As of December 2002, the Bank of Antigua’s total assets exceeded
US$275 million. Total deposits stood at approximately US$225
8 Company Profile Cayman Islands million and total advances stood at about US$152 million.
CAIB MISSION STATEMENT
Our mission is to promote networking among Caribbean
Indigenous Commercial Banks and related financial
Institutions with a view to providing a range of services to
members to facilitate their efficiency, effectiveness and
profitability and to influence policy formulation in the
Caribbean, particularly that which impacts on the practice
and conduct of banking and the development of the
THE CAIB ANTHEM
WE STAND AS ONE There are three locations to serve customers – one at the Bank’s
headquarters in Coolidge, and two branches in St. John’s and
WE SING ONE SONG
English Harbour. Bank of Antigua also has a mobile unit called
AND SHARE ONE DREAM Bank on Wheels. The mobile unit is fully equipped to handle most
WITH HIGH ESTEEM customer transactions, and customers in outlying areas love the
NO DARKENED PAST CAN SHADOW OUR FUTURE convenience of the unit. BOA is the only commercial bank in
WE SEE ONE LIGHT, A LIGHT THAT SHINES FOREVER. Antigua to drive banking services directly to its customers, and has
FROM DIFFERENT PARTS WE CAME regularly supported the community, through the sponsorship of
neighbourhood programs, civic events and charitable
THE STORIES ALL THE SAME
WE STAND AS ONE
WE SING ONE SONG A proud staff of about 61 employees works to sustain Antigua’s
unique heritage while offering a wide range of banking services.
CARIBBEAN ASSOCIATION OF INDIGENOUS BANKS Apart from the regular services, Bank of Antigua also offers
telephone banking as well as online banking.
CHAKIRO COURT TEL (758) 452 2877
VIDE BOUTEILLE FAX (758) 452 2878 You can visit the Bank’s website at
P. O. BOX CP5404 E- MAIL CAIB @ CANDW . LC http://www.bankofantigua.com.
CASTRIES W EBSITE WWW . CAIBINC . ORG
FULL INTERNET BANKING AT NCB JAMAICA
Courtney Campbell, head of retail banking at NCB,
expects that the internet and call centres will be used
by about 50 per cent of the bank’s customers.
On Monday, July 28, 2003, NCB launched its internet
banking service – part of a US$52 million investment that No fee has been set for the services at yet, but the
will place the Bank at the cutting edge of banking executive says that the charges will likely be lower
technology. NCB expects internet banking to drastically than the fees customers pay when they use the
reduce queues at its various branches, and improve the services at the banking halls. As a promotion, the
service/convenience to its customers. internet banking services are free until December.
This is the first internet banking in Jamaica, and the The commercial bank is the first subsidiary within the
technology will give those customers who are equipped NCB Group to offer this service. However, the
with a computer and internet connection the ability to stockbrokerage and funds management subsidiary
conduct a whole range of banking services without will come online later this month, followed by NCB
leaving their homes or offices. These services include Investment and West Indies Trust and Company in
balance enquiry; funds transfer; bill payments; duplicate September.
statements; stop order on cheques; request for credit
limit; standing orders; and reporting lost credit cards. The core software developers for the NCB’s internet
Bank of Nova Scotia, NCB’s major rival, already offers platform are Infosys Ltd, Servion and Vivotech. The
online credit card payments with its local cards, but does platform is secured on three independent levels of
not offer internet banking to its customers. internet security, and will allow the bank to offer
additional internet services such as e-commerce
There are currently 22 staff members in the call centre, facilities.
and an additional 25 are being trained to be added.
Global Bank and London Bridge open Financial Services
Global Bank of Commerce (GBC) has announced a five-year agreement with London Bridge Group, a world leader
in delivering client/server core banking software, in an effort to make first world technology available to local
In this agreement, London Bridge will implement the Phoenix Banking System and license an Application Service
Centre in Antigua & Barbuda for Eastern Caribbean financial institutions and credit unions.
According to a press release, GBC chose the Phoenix System as its core banking solution because of its significant
advantage over competing systems to deliver multi-channel methods of delivering banking and related services in
the globally competitive environment of the 21st century.
The new Application Service Centre (ASC) in Antigua will provide outsourcing services to GBC and to any other
Eastern Caribbean financial institutions.
GBC’s Chairman and CEO, Brian Stuart-Young said strong Internet banking and relationship management
capabilities were key issues in selecting the Phoenix System.
He also cited that London Bridge’s proven track record to serve the Caribbean, the ability of users to offer disaster
relief opportunities among themselves, and the fact that there is a 7/24 service centre operated in close proximity to
the region from Orlando, Florida.
CAIB Newsletter 2
Global Bank and London Bridge open Financial Services continued from page 2
Regarding the ASC initiative, he said GBC was pleased these banking networks in the Caribbean.
to collaborate with London Bridge and had readily agreed
to invest in establishing a separate service company to The release stated that this would be the first ASC in
function as the ASC in Antigua. the Caribbean to offer a processing alternative for
financial institutions, particularly those who wish to be
Stuart-Young said the venture is being developed with globally competitive, but have limited resources to
strong strategic partners and other Eastern Caribbean achieve that goal.
financial institutions will be invited to invest in the ASC.
The ASC concept allows banks and credit unions to
“It will be an attractive investment opportunity for any obtain “Best of Class” technology at costs tailored to
institution that understands the benefits of outsourcing their size.
regular back-office banking services. Invariably with the
purchase of any new technology, the user may never use Managing Director of Latin and Caribbean division at
the full capacity of the system. London Bridge Group, Lily Mendia, said the company
was excited about the partnership with GBC.
An ASC facility lets the user pay only for what is used
and allows the user to benefit from upgrades, “This agreement will have significant impact for both
maintenance and expansion costs normally associated GBC and London Bridge. The flexibility and
only with individual ownership. This will also be a capabilities of the Phoenix System will allow GBC to
demonstration that an Eastern Caribbean entity compete even more effectively in the modern financial
specializing in core banking and other IT solutions can marketplace,” she said.
provide globally competitive technology driven
Mendia continued, “London Bridge is very pleased
services,” Stuart-Young said.
about working with GBC to offer the Phoenix Banking
The bank completed a successful conversion to the System as an outsourced solution to banks and credit
Phoenix System and went “live” on 01 July 2003. unions through out the Eastern Caribbean and is
committed to fully support the Antigua ASC entity
Other leading financial institutions such as Cayman being formed by GBC.”
National Bank, Jamaica National Building Society,
Mutual Bank in Barbados and Republic Bank in Trinidad Global Bank of Commerce (GBC) is an Antiguan
are operating on the Phoenix banking solution software. owned and operated institution that has been providing
international financial services since 1983.
There is also an active regional users group that supports
FCB Divestment On Hold …..Government yet to make definite decision
The tenuous marriage of corporate objectives and political priorities, inherent in many quasi-public institutions,
appears to be showing signs of strain in the case of the First Citizens Bank of Trinidad and Tobago (FCB).
By virtue of the Government of Trinidad and Tobago being the largest shareholder, FCB has always been perceived
as a bank of convenience for the government in power. Consequently, current divestment plans are eagerly
anticipated by the FCB Board, headed by its Chairman, Mr. Ken Gordon.
Mr. Gordon is of the view that divestment would eliminate the perception of government interference, enhance bank
efficiency, competitive capability and growth prospects.
Here is the catch: its largest shareholder, the Government of Trinidad and Tobago, has not yet committed itself to a
date for this divestment. Time appears to be running out considering the impact of the Free Trade Area of the
Americas (FTAA) in the region from January 1, 2005.
In the meantime, the Chairman has reiterated his commitment to making all necessary arrangements for divestment,
whenever the mandate is finally given.
CAIB Newsletter 3
Eastern Caribbean Securities Exchange - Investing in Stocks
The Eastern Caribbean Securities Exchange (ECSE) line to get paid back in the event the company fails.
is a regional securities market, established by the However, unlike holders of common shares, preferred
Eastern Caribbean Central Bank and regulated by the shareholders cannot vote for the directors of the
Securities Act, uniform legislation governing all company nor have a say in the running of the company.
securities activities in the ECCB currency area. The
ECSE is designed to facilitate the buying and selling of Benefits of Owning Stock
financial products for the eight territories of Anguilla,
Antigua and Barbuda, Dominica, Grenada, Montserrat, Shareholders may receive periodic income payments
St Kitts and Nevis, St Lucia and St Vincent and The from the company’s profits called dividends. Dividends
Grenadines. are not fixed or guaranteed.
Going Public Other benefits of owning stock include capital
appreciation (gains) and the right to vote in the
One type of financial product traded on the ECSE is company. Capital appreciation is when shares increase
corporate stocks (shares) of public companies. Public in value and can be sold at a profit. Shareholders
companies can raise capital by selling part ownership in maintain an influence in the company’s future growth
their firms, while investors can take advantage of a and development through their right to vote.
firm’s profitability by buying shares. Here’s how it
Risks of Owning Stock
Suppose a big supermarket needed funds to expand - In general, while shares may fluctuate in value over
build new outlets, computerize, hire new employees - it time, they historically increase in value and tend to
may choose to borrow from a bank, sell bonds, or go perform well relative to other financial products.
public by selling stock. If the company chooses to sell However, an investor should always keep in mind that
stock (shares), it will not have to repay the money it the value of shares may decrease and, if the company
raises, whereas it would have to repay a loan or the fails, the shareholder may lose all of his investment.
money raised by selling bonds.
Buying Stock on the ECSE
An initial public offering (IPO) is when a company
goes public and sells stock to investors for the very first Brokers/dealers, and limited service brokers, handle the
time in what is called the primary market. The company purchase and sale of stock on the ECSE. If you would
gets the funds that it needs to expand, and the investors like to invest, you should contact a local broker/dealer
get part ownership of the company. If the company’s or limited service broker for information about listed
shares are already publicly traded, it can raise companies with stock for sale. Investing wisely on the
additional capital by issuing more shares in the primary ECSE requires information and education. You should
market. This is called a seasoned public offering. In the learn about the variety of products available on the
secondary market, investors buy and sell these shares Exchange and their characteristics so that you can make
among themselves, and none of this money goes to the the right choices in terms of your objectives. Once you
issuing company. decide you are interested in a particular stock, you
should find out about the issuer and the terms of the
Stock (also referred to as equity or shares) represent Additional Information
ownership in a company with specific rights, including
the ability to “share” in the profits of the organization. You can access current news and information about the
There are two main categories of shares - common and Exchange, learn more about listed companies, or obtain
preferred. a list of names and addresses of licensed
brokers/dealers and limited service brokers on the
Preferred shares give shareholders priority over ECSE’s website: http://www.ecseonline.com
common shareholders in that they are the first to
receive returns on their investment, and are the first in
CAIB Newsletter 4
Eastern Caribbean Securities Exchange - Investing in Bonds
Bonds Even if a company does poorly, it is still obligated to pay
interest to its bondholders. Companies and governments
A bond (debenture) is one type of security traded on the rarely default on bonds, making this form of investment
ECSE. A bond is a loan that an investor makes to an issuing considerably safer than others.
company or government for a certain period of time. In
return, the investor receives periodic interest payments Risks Involved in Owning Bonds
quarterly or semi-annually for the loan. When the bond
matures (at the end of the agreed loan period), the investor The interest on a bond is established when it is purchased, so
receives repayment of the entire amount loaned. this investment may not offer the high returns that shares do.
Although it is rare, there is also the risk that the company or
Bonds are considered long-term investments and are usually government may default on making interest payments. It is
issued for periods of more than one year. Once issued, a bond even rarer that they default on the repayment of a bond when
can be traded like any other security. There are corporate and it matures. Nevertheless, both of these possibilities exist. This
government bonds. is called credit or default risk.
Corporate Bonds Another risk associated with bonds is called interest rate risk.
This occurs when market interest rate change causing the
Corporate bonds are issued by companies that want to raise price or value of a bond to fluctuate. Nevertheless, as a result
funds for long-term projects without selling new shares. of the stable interest rate environment in the region, interest
These bonds usually pay higher interest rates than rate risk is relatively low.
government bonds, because they are somewhat riskier.
However, they are not as risky as stocks. If the company goes
bankrupt, bondholders are paid their money back before
shareholders. Buying Bonds on the ECSE
Government Bonds Broker/dealers and limited service brokers handle the
purchase and sale of bonds. If you would like to invest, you
Governments issue bonds in order to fund long-term should contact a local broker/dealer or limited service broker
development projects. They are usually considered to be the for information about available bonds listed on the ECSE.
safest type of investment since the government guarantees Investing wisely on the ECSE requires information and
that the investor will be repaid the loan in full upon maturity. education. You should learn about the variety of products
It can make these guarantees because of its ability to impose available on the Exchange and their characteristics so that
taxes if necessary to repay the loan. Governments also you can make the right choices in terms of your objectives.
establish sinking funds when they issue bonds in order to Once you decide you are interested in a particular bond, you
provide for repayment. Sinking funds are like saving should find out about the issuer and the terms of the
accounts in which the government makes regular deposits and investment.
earns a return. Sinking funds are established to save enough
money to repay investors. Additional Information
Benefits of Owning Bonds You can access current news and information about the
Exchange, learn more about listed companies or obtain a list
An investor who owns corporate or government bonds of names and addresses of licensed broker/dealers and limited
receives periodic interest payments as well as the repayment service brokers on the ECSE’s website:
of the original amount loaned at a specified time in the future. http://www.ecseonline.com
Find us on the web at www.caibinc.org/newsletter
We look forward to receiving articles and news items from you.
These can be sent on a regular basis via regular mail, e-mail or fax.
CAIB Newsletter 5
RBTT Breaks Language Barrier With US$104m Loan
RBTT has recently passed a significant milestone with the closing of a US$104 million capital market issue for the company,
Empresa Generadora de Electricidad (EGE) Haina of the Dominican Republic.
This marked the largest transaction undertaken by RBTT outside of Trinidad and Tobago and its first in the Spanish-speaking
EGE Haina is the largest single power generator in the Dominican Republic. The Company solicited the funds from RBTT
Merchant Bank to refinance its existing obligations and to fund the acquisition of Empresa Generadora de Electricidad Itabo,
another electricity-generating company. This acquisition will now give EGE control over 35 % of the power –generating capacity
in the Dominican Republic.
The capital market issue comprised a senior secured note which matures in 2010. Major partners in this deal were RBTT Trust
Ltd, United Trust Corporation, Ansa Finance and Merchant Bank Ltd, Clico Investment Bank, Intercommercial Bank Ltd and the
National Insurance Corporation, St Lucia. RBTT Merchant Bank intends to raise a further US$146m for the said company via a
syndicated loan and a second senior secured note.
This deal, which took one year and three months to be realized, has given impetus to RBTT plans to also penetrate the French-
speaking regional countries , while continuing to grow its business in other English-speaking territories.
CITIZENS BANK GUYANA INC
For the Six Months Ended March 31, 2003
The Company recorded Profit Before Taxation of $109.5 million for the six (6) months ended March 31, 2003,
representing an increase of $6.7 million or 6.5% over the corresponding period last year.
Interest Income for the six (6) month period was $409.8 million while Interest Expense was $132.5 million, resulting
in Net Interest Income of $277.4 million, compared to $210.0 million for the corresponding period last year. Other
Income was $70.9 million, resulting in a surplus before non-interest expenses of $348.3 million; this represents an
11.0% increase on the corresponding period last year.
Operating Expenses were $190.2 million; this represents a 7.0% increase on the corresponding period last year; the
main contributors to the growth were utility charges.
After Tax Profit for the six (6) months was $96.3 million; compared to the corresponding period last year, this
represents a 6.4% increase. Earnings per share for the six (6) month period were $1.62 in comparison to $1.52 for
the same period in 2002.
At March 31, 2003, the loan balance was $4.6 billion, compared to $4.3 billion at March 31, 2002; for the six (6)
month period, Provision For Loan Losses increased by $48.6 million, taking total provision to $165.9 million or 3.6% of
our loan portfolio at March 31, 2003, compared to $95.0 million or 2.2% of our loan portfolio at March 31, 2002. At
March 31, 2003, total investments were $2.1 billion, compared to $2.3 billion at March 31, 2002 and total deposits
balance was $7.4 billion, compared to $7.2 billion at March 31, 2002.
Guyana's economy remains sluggish and the period under review was a very challenging one. In spite of this, the
Company has produced very gratifying results to date, and barring any unforeseen developments, we expect to have
continued good profit growth in the second half of 2003 financial year.
CAIB Newsletter 6
EC Talking VAT
Twenty years ago revenue streams from indirect taxation (indirect taxes from port charges) were robust, and OECS governments
gave little consideration to adopting the Value-Added Taxation system.
Countries such as Trinidad and Tobago and Barbados went ahead and successfully adopted the VAT. Grenada was one of the few
OECS member countries that followed suit in the 1980’s but subsequently eliminated it. In retrospect, Grenada’s lack of success
was blamed on the absence of an appropriate informational infrastructure.
The tide has now turned. Revenues from indirect taxes have been falling steadily in many OECS countries. The situation has
become serious enough for the OECS Authority (at the 33rd Meeting held in Monserrat) to conduct a regional study on the impact
of VAT on OECS member states. This time, VAT is not seen merely as a viable alternative but rather, the only alternative for
many OECS states.
CAIB Newsletter 7
High-Flying Lawyer Lands INSTRUCTIONS FOR LIFE
1. Take into account that great love and great
The National Bank of Industry and achievements involve great risk.
Commerce in Guyana is basking in the 2. When you lose, don't lose the lesson.
3. Follow the three Rs: Respect for self, Respect for
reflected glory of the achievement of one of
others, Responsibility for all your actions.
its staff from the Legal Department, Mr. 4. Remember that not getting what you want is
Toussant Boyce. Mr. Boyce graduated from sometimes a wonderful stroke of luck.
the University of Cambridge with a First 5. Learn the rules so you know how to break them
Class Masters Degree in Law with distinction properly.
– a first for Guyana. 6. Don't let a little dispute injure a great friendship.
7. When you realize you've made a mistake, take
The Chevening Scholar read for a Masters immediate steps to correct it.
Degree in Commercial Law with a 8. Spend some time alone every day.
concentration on International Financial Law, 9. Open your arms to change, but don't let go of
which included International Banking and your values.
Finance Law, Commercial Insurance, Law of 10. Remember that silence is sometimes the best
Restitution and Corporate Finance Law.
11. Live a good, honorable life. Then when you get
older and think back, you'll be able to enjoy it a
This achievement takes on added second time.
significance considering the questions raised 12. A loving atmosphere in your home is the
by U.W.I. in 1995 about the adequacy of the foundation for your life.
University of Guyana’s LLB degree as a basis 13. In disagreements with loved ones, deal only
for admission into the Hugh Wooding Law with the current situation. Don't bring up the
14. Share your knowledge. It's a way to achieve
Mr. Boyce is a graduate of the UG LLB immortality.
programme. He is also the holder of a Euro 15. Be gentle with the earth.
Money Certificate in International Financial 16. Once a year, go someplace you've never been
Law from Oxford University and a Diploma in
17. Remember that the best relationship is one in
Executive Banking from Stonier Graduate which your love for each other exceeds your
School of Banking. need for each other.
• “Opportunity is missed by most people because it is dressed in overalls and looks like work” – Thomas A. Edison
• “People who never do any more than they get paid for, never get paid for any more than they do” – Elbert Hubbard
• The world is full of willing people; some willing to work, the rest willing to let them” – Robert Frost
• “If people knew how hard I worked to achieve my mastery, it wouldn’t seem so wonderful at all” - Michelangelo
• “The race for quality has no finish line” – Unknown
• “There are two kinds of people - those who do the work and those who take the credit. Try to be in the first group –
there is less competition” – Indira Ghandi
• “Some people dream of success, while others wake up and work hard at it” – Unknown
• “There is an island of opportunity in the middle of any difficulty” – Unknown
• “Anyone can hold the helm when the sea is calm” - Unknown
CAIB Newsletter 8
COUNTRY PROFILE – CAYMAN ISLANDS
The Cayman Islands consist of a group of three islands in the Caribbean Sea –Grand Cayman, Cayman Brac and Little Cayman. The islands are located west
of Jamaica, and just south of Cuba, and have a population of almost 40,000 people. The capital is George Town and is located on the biggest, and most
developed, of the three islands, Grand Cayman.
The Cayman Islands were discovered by Columbus in 1503 and named Tourism is also critical to the economy accounting for about
‘Las Tortugas’ (the turtles in Spanish), for the abundance of turtles found 70 per cent of Gross Domestic Product (GDP) and 75 per
around the islands. The islands eventually become known as “Caymanas”, cent of foreign currency earnings. Total tourist arrivals
which is derived from a Carib word for crocodiles. Both exceed 1.5 million every year with the majority of visitors
crocodiles and turtles were hunted, and the islands were a coming from North America.
popular stopping off point for sailors to take on fresh water
and food. Per capita income in the Cayman Islands is one of the highest
The islands became British under the Treaty of Madrid, in the world at approximately US$30,000. GDP stands at
1670. In 1832, a Legislative Assembly was established, and about $1.18 billion and the rate of growth is about 4.5 per
in 1849, a legal system was implemented. In 1863, Cayman cent (2000 estimate). The inflation rate, according to a 2000
was placed under the direct control of Jamaica. When estimate, is about 2.3 per cent and the unemployment rate
Jamaica became independent in 1962, Cayman chose to hovers at about 4 per cent.
remain a British dependent with an Administer appointed by
Britain. This title was changed to Governor in 1971.
Over the last thirty (30) years, the Cayman Islands have
The Economy become one of the world’s largest international financial
With no direct taxation, the Cayman Islands is a major centres. In fact, it is the world’s fifth largest financial centre.
offshore financial centre. Over 40,000 companies were Grand Cayman is home to not only the majority of the
registered as of 1998, including 600 banks and trust population, but to many banks and financial institutions,
companies. Banking assets exceed $500 billion. where local and international investors find the
infrastructure, services and financial expertise are of the
CAIB Newsletter 9
Banking Cayman Stock Exchange
As a first class financial services jurisdiction, Cayman The Cayman Stock Exchange (CSX) was first established in
attracts the world’s leading accounting, legal and investment 1997. In 1999, the CSX was admitted to the London Stock
firms, and the banking industry remains a cornerstone of Exchange’s list of approved organizations, and became the
Cayman’s success. first offshore exchange to gain this designation. Moreover,
an independent review by KPMG in 2000 declared the CSX
Currently, there are 389 banking companies in Cayman, met international standards in its operations.
including 43 of the world’s largest 50 banks. Adherence to
the regulatory standards of the Basle Committee on Banking To ensure that the highest standards are met, the CSX has
Supervision is fundamental to the regulatory approach, and partnered with Bloomberg Financial Markets, providing
the Cayman Islands is an active member of the Basle global financial information. Bloomberg and CSX have
Committee’s Offshore Group of Bank Supervisors. developed a fully electronic listing and trading service, as
well as a dedicated news wire service. The CSX website
In addition, there is a unique mix of stability, innovative (http://www.csx.com.ky) has the same information posted on
legislation, commercial strength, Government support, and Bloomberg and provides interactive access to information
the absence of corporate, capital gains, income, payroll and and prices held by the Exchange.
withholding taxes, on domestic or foreign entities. More
importantly, the Cayman Islands maintains a strict anti-
money laundering regime which extends to the proceeds of
all serious crime under the ‘gateway’ legislation.
First Global Buys Out Citibank’s Retail Business
Citibank’s plans to exit the retail banking business are moving ahead at full steam. This process began a
few years ago with the sale of its credit card business to Bank of Nova Scotia.
In its latest move, Citibank sold its retail banking portfolio to First Global, a Grace Kennedy subsidiary.
The terms of sale are kept confidential by mutual agreement. This transaction also entailed First Global
taking over Citibank’s Montego Bay branch and staff.
The immediate payoff for First Global is the over 1,000 former Citibank retail banking customers that it
now controls. To Citibank however, this move was strategic, allowing it to focus on its core business –
large corporate clients.
To a large extent Citibank strategy represents a radical departure from prevailing trends in the merchant
banking industry, which tended towards the expansion of their retail base.
CAIB Newsletter 10