Annual Report - First Citizens

Transcription

Annual Report 2015
WE
1:
I and the rest of a group that includes me:
you and I: you and I and another or others:
— pronoun of the first person plural —
We are employees; we are members of a community;
we are citizens of a region.
But what defines us?
In banking, the human signature remains the seminal form
of identification; in life, it’s part of who we are — a defining
statement.
This, the 2015 Annual Report, is our defining statement — more
than just a collection of facts and figures. It is a declaration of
intent for the standard we set for ourselves and our customers; a
statement that says: this is who we are; this is what we do.
This is WE.
This is First Citizens.
WE
are First Citizens
Vision
To become the most competitive financial
services group in the markets in which we serve.
Mission
Our aim is to build a highly profitable financial
services franchise renowned for innovativeness,
service excellence and sound corporate governance.
Contents
07 Corporate Information and Profile of Subsidiaries
09 Chairman’s Report
13 Group Chief Executive Officer’s Report
17 Statement of Management Responsibility
18 Ten Year Summary of Financial Data
19 Director’s Report
23 Executive Profiles
23 Board of Directors
29 Executive Management
31 Senior Management
33 Management Discussion & Analysis
41 Group Profile
53 Corporate Governance Structure
59 Corporate Social Responsibility
59 Women
65 Sports
73 Youth & Education
81 Culture
87 Financials
88 Independent Auditor’s Report
89 Consolidated Statement of Financial Position
90 Consolidated Income Statement
91 Consolidated Statement of Comprehensive Income
92 Consolidated Statement of Changes in Equity
93 Consolidated Statement of Cash Flow
95 Notes to Consolidated Financial Statements
Corporate Information
& Profile Subsidiaries
First Citizens
BOARD OF DIRECTORS
For the year ended September 30, 2015
»
»
»»
Anthony Isidore Smart – Chairman
Joseph Toney – Deputy Chairman
Jean Pierre du Coudray
Hazar Hosein
Joel Pemberton
Courtenay Williams
Franka Costelloe
Ryan Proudfoot
Ian Narine
Rajesh Rajkumaringh
Cherry Ann Le Gendre
»
»»
Appointed January 26, 2015
Appointed April 27, 2015
Group Corporate Secretary
Sharon L. Christopher
LLB (UWI), LLM (Lond.), LEC,
Acc. Dir.
Registered Office
9 Queen’s Park East,
Port of Spain, Trinidad, W.I.
Tel: (868) 624-3178
Fax: (868) 624-5981
firstcitizenstt.com
Auditor:
PricewaterhouseCoopers
11-13 Victoria Avenue,
Port of Spain, Trinidad, W.I.
First Citizens Asset
Management Limited
BOARD OF DIRECTORS
Feona Lue Ping Wa
Narinejit Pariag
Susan Romano-Davis
Joel Pemberton
» Joseph Toney – Chairman
»» Jason Julien
» » »
Karen Darbasie
»
»»
»»»
»»»»
7
Appointed August 08, 2015
Appointed April 10, 2015
Appointed May 29, 2015
Appointed June 08, 2015
| Corporate Information and Profile Subsidiaries
Registered Office
50 St. Vincent Street, Port of Spain,
Trinidad, W.I.
Tel: (868) 623-9091-7;
(868) 625-8115-8
Fax: (868) 625-2349;
(868) 624-8937
firstcitizenstt.com
First Citizens Trustee
Services Limited
BOARD OF DIRECTORS
Courtenay Williams – Chairman
Franka Costelloe
Hazar Hosein
Shiva Manraj
»
Ian Narine
»
Appointed October 02, 2014
Registered Office
45 Abercromby Street, Port of Spain,
Trinidad, W.I.
Tel: (868) 623-9091-7;
(868) 625-8115-8
Fax: (868) 627-6426
firstcitizenstt.com
First Citizens Securities
Trading Limited
BOARD OF DIRECTORS
Hazar Hosein – Chairman
Jason Julien
»
Keshwar Khodai
»
Appointed February 03, 2015
Registered Office
45 Abercromby Street, Port of Spain,
Trinidad, W.I.
Tel: (868) 623-9091-7;
(868) 625-8115-8
Fax: (868) 627-6426
firstcitizenstt.com
First Citizens (St. Lucia)
Limited
BOARD OF DIRECTORS
Shiva Manraj
Sharon Christopher
Courtenay Williams
»
Dunstan Douboulay
*
Michael Chastanet – Chairman
»
*
Retired August 31, 2015
Registered Office
Noble House, 6 Brazil Street,
Castries, St. Lucia, W.I.
Tel: (758) 452-5111-3
Fax: (758) 452-5114
First Citizens Financial
Services (St. Lucia) Limited
BOARD OF DIRECTORS
»
*
Shiva Manraj
Sharon Christopher
Courtenay Williams
Dunstan Du Boulay
Michael Chastanet – Chairman
»
*
Retired August 31, 2015
Registered Office
Noble House, 6 Brazil Street, Castries,
St. Lucia, W.I.
Tel: (758) 452-5111-3
Fax: (758) 452-5114
First Citizens Investment
Services Limited
Services (Barbados) Limited
First Citizens Bank
(Barbados) Limited
BOARD OF DIRECTORS
BOARD OF DIRECTORS
BOARD OF DIRECTORS
»
» »
Anthony Smart – Chairman
Franka Costelloe
Joel Pemberton
Ryan Proudfoot
Ian Narine
Karen Darbasie
»
Ryan Proudfoot – Chairman
Robin Lewis
Sir Trevor A Carmichael
Joseph Toney
»
»
»
Anthony Smart Chairman
Sir Trevor A. Carmichael Q.C.
Peter Williams
Renee Kowlessar
Ryan Proudfoot
Jon Martineau
»
» »
Appointed May 26, 2015
»
Appointed July 03, 2015
Registered Office
17 Wainwright Street, St Clair,
Trinidad, W.I.
Tel: (868) 622-3247
Fax: (868) 627-5496
firstcitizensinvestment.com
First Citizens Brokerage &
Advisory Services
BOARD OF DIRECTORS
»
» »
» »
Joel Pemberton – Chairman
Ryan Proudfoot
Sharon Christopher
Robin Lewis
Rajesh Rajkumarsingh
Karen Darbasie
»
» »
Appointed December 04, 2014
Appointed July 28, 2015
Registered Office
17 Wainwright Street, St Clair,
Trinidad, W.I.
Tel: (868) 622-3247
Fax: (868) 627-5496
Registered Office
Warrens Great House, Warrens,
St. Michael, Barbados, W.I.
Tel: (246) 426-2020
Fax: (246) 426-0266
FCCR – First Citizens, Costa
Rica S.A.
Registered Office
1st Floor, Carlisle House, Hincks Street,
Bridgetown,
Barbados, W.I.
Tel: (246) 431-2353
Fax: (246) 430-0221
firstcitizensbb.com
BOARD OF DIRECTORS
»
» »
Anthony Smart – President
Shiva Manraj
Ian Narine
Karen Darbasie
»
» »
Appointed June 26, 2015
Registered Office
Oficentro Eurocenter 1, Barreal de
Heredia, Costa Rica
Tel: (506) 223-95581
Fax: (506) 223-95860
firstcitizenstt.com
Corporate Information and Profile Subsidiaries |
8
Chairman’s
Report
Anthony Isidore Smart
CHAIRMAN
GROUP PERFORMANCE
THE INTERNATIONAL ECONOMY
I am pleased to report that profit before taxation for the
First Citizens Group increased by 2.4%, from $772.6
million to $790.8 million, for the financial year ended
30 September, 2015. Profit after taxation amounted to
$630.4 million. Total assets increased by 7.7% moving
from $34.9 billion in 2014 to $37.5 billion in 2015. First
Citizens remains the best capitalised bank in the industry,
its capital base increased by 1.3% from $6.24 billion in
2014 to $6.33 billion. First Citizens was recognised by The
Banker for its capital adequacy strength with a ranking of
4th in the world and was also named the Safest Bank
in Trinidad and Tobago by Global Finance in September
2015.
Slower growth in some of the major advanced
economies together with structural weaknesses in
large emerging market economies have resulted in a
disappointing performance in the global economy in
2015. Expectations for 2016 are for economic activity
to pick up in the advanced economies and projected to
decline in the emerging markets. Economic activity in
the emerging markets was negatively impacted by low
commodity prices, depreciating currencies and increasing
financial volatility. The International Monetary Fund (IMF)
is forecasting that global growth will come in at 3.1% in
2015 and 3.6% in 2016.
Based on these results, a final dividend of $0.74 has been
declared, which brings the total dividend for the fiscal
year to $1.32 (2014: $1.18). This equates to a payout
ratio of 52.5%, compared to 47.5% in 2014.
The US economy continues to expand, growing by a 2.1%
rate in the third quarter of 2015, however of concern
is the level of inventory overhang by companies, which
would likely impact upon future growth in the US. This is
the slowest rate of growth in real GDP since March 2014.
The US Federal Reserve (Fed) has held its benchmark Fed
Funds rate steady at 0% - 0.25% up to November 2015,
notwithstanding the significant market volatility caused
by expectations of a rate hike in 2015. The Fed stated that
more concrete evidence of faster inflation was needed in
order to justify a rate hike. The market now expects the
Fed to increase the rate at its December meeting.
Chairman’s Report | 10
In spite of the threats in the external economy, the Euro area
has recovered, supported largely by domestic factors such
as domestic private consumption, which has benefitted
from the European Central Bank’s (ECB) monetary policy
measures and the positive impact they have had on the
financial markets. The ECB announced a further stimulus
plan, which includes a cut in the floor for interest rates and
an expansion in its bond-buying program by at least 360
billion euros.
Growth in the emerging markets is projected to slow from
4.6% in 2014 to 4% in 2015, compared to the IMF’s July
forecast of 4.2% for 2015, with a significant cut in Brazil’s
performance. According to the IMF, Brazil’s economy will
contract 3%, a significant deterioration from the July’s
forecasted contraction of 1.5%. Brazil’s weak outlook is
based on fragile oil prices, its exposure to China and the
widespread corruption scandal at State-run Oil Company,
Petrobras. China is expected to grow 6.8% in 2015,
even as investment growth slowed and imports declined.
Consumer demand remained fairly steady. The outlook for
emerging markets in general is expected to be adversely
impacted by lower commodity prices, tighter external and
financial conditions as well as increasing financial market
volatility.
BARBADOS
The Barbadian economy is benefiting from an improved
external economy. During the first nine months of 2015,
the economy recorded growth of 0.3%, better than
the 0.1% posted in the same period a year earlier. The
tourism sector experienced an expansion of 6.29% during
the period. Performance was muted in other key sectors
such as Finance and other services (0.62%). Foreign
reserves were estimated at US$488.4 million at the end
of September 2015, providing 14.4 weeks of import cover
(goods & services). This compares to foreign reserves
of US$532.7 million at the end of September 2014,
which then provided 14.6 weeks of import cover. This
represents an 8.3% decline in foreign reserves. Ratings
agency, Standard and Poor’s currently rates Barbados
at B with a negative outlook, noting that the country’s
fundamentals remain weak, reflecting not only global
economic conditions, but also competitiveness and other
structural shortcomings. While the present government
is making an attempt to improve Barbados’ fiscal status,
consolidation and weak competitiveness will continue to
hamper Barbados’ economic recovery. There have been
signs that the ability to borrow in the domestic market at
low rates is diminishing and access to external markets has
been affected by successive downgrades. Even as there
are signs of a nascent recovery in Barbados, clearly several
risks still cloud the outlook.
REGIONAL
Low commodity prices coupled with prospects for a
stronger US economy have both augured well for the
Caribbean economy. Indeed over the past year, the
region’s performance has improved at a moderate pace,
with the tourism sector accounting significantly to overall
growth. The positive tailwinds for the region resulted in
a commendable outturn of average growth of 2.45% in
2014, with the tourism-dependent economies estimated
to have expanded at a healthy 2.4%, compared to 0.3%
in 2012. The commodity-exporters have suffered due to
the global market and are estimated to have grown by
2.5%. The outlook for the Caribbean region for 2016 is
relatively better than the past year, based on continued
low commodity prices as well as a recovery in the global
economy. However, these upside risks are balanced by
expectations for higher interest rates in the US, appreciation
in real effective exchange rates as well as an increasingly
competitive tourism market.
11 | Chairman’s Report
EASTERN CARIBBEAN CURRENCY UNION (ECCU)
Encouragingly, economic activity in the Eastern Caribbean
Currency Union (ECCU) is estimated to have expanded
2.7% in 2014 according to the IMF. However, averages
among countries were widely dispersed, ranging from a low
of -0.2% in St Vincent & Grenadines and a high of 6.1%
in St Kitts and Nevis. Most sectors registered growth in the
first quarter of 2015, with the exception of construction
and manufacturing. According to the IMF, fiscal discipline
has improved in the region and urged efforts to intensify
consolidation efforts. Total public debt (as a % of GDP) is
expected to decline slightly from 82.3% in 2015 to 80.4%
in 2016, but will then moderate further to 2019. ECCU
policymakers have made progress in strengthening banks
and shoring up legislation to improve bank supervision
and regulation, which should bode well for the financial
sector in the region.
COSTA RICA
Costa Rican growth is expected to slow in 2015 as the loss
of high value foreign companies such as Intel continues
to weigh on the country’s manufacturing sector and limit
growth and a slowdown in agriculture due to adverse
weather conditions occurs. Private consumption (3.6% 2015) is expected to be significantly boosted by low oil
prices for the year and will be an important contributor to
the country’s growth in 2015. Positively the US continues
to strengthen and as Costa Rica’s main trading partner
this growth is expected to filter down into Costa Rica’s
economy. The construction sector will also provide growth
this year due to several infrastructure projects such as the
Moin container terminal, several large road infrastructure
projects and hospital projects. In September President
Solis stated that the country was in preliminary talks with
China for financing to help cover the deficit which is now
projected to grow to 6.9% in 2016.
TRINIDAD AND TOBAGO
The Trinidad and Tobago economy is estimated to have
contracted 2% in the first half of 2015 and forecasted
to register marginal growth of 0.2% for the full year.
The petroleum sector is expected to post a decline of
3.4%, the second straight year of contraction, while the
non-petroleum sector is expected to continue growing,
with a rate of 2.3% estimated. The strength of the nonpetroleum sector is underpinned by the services sector,
which now contributes about 56% of GDP. The strongest
performing sector was finance, real estate and insurance,
which is estimated to grow by 8.6% in 2015, significantly
up from the decline of 1.1% recorded in 2014. Headline
inflation in the 12 months to October 2015 stood at
3.2%, significantly down from the 7.8% recorded at the
end of September 2014. Core inflation rose to 2.4%,
above the year to date 2015 average of 1.7%, while food
inflation moderated to 6.1%. The Central Bank expects
that inflationary pressures will accumulate in the latter half
of the year based on disruptions to domestic agricultural
supply as well as recently concluded public sector wage
agreements, which will push consumer spending.
The Budget 2016 is predicated on a cautiously optimistic
USD45 per barrel oil price and a basket of natural gas
prices, and forecasts another year of deficit of 1.7% of
GDP. The energy sector is expected to bring in a mere 10%
of total revenue in fiscal year 2016, a far cry compared to
the 50% average over the past three years. Clearly, the
non-energy sector is positioned to take on a much more
prominent role in 2016. The new fiscal year budgets that
the non-energy sector will yield 55% more revenue than
the previous fiscal year.
The Central Bank continued to raise interest rates by
incremental 25 bps hikes to end November 2015 at
4.75%. The Central Bank cited that the normalisation of
US monetary policy as the most influential factor behind
the decision to raise rates. On 30 October, the CBTT reestablished the previous foreign exchange distribution
system that was in operation up to 31 March, 2014. In
addition, the Bank injected USD500 million in the market.
As at the end of October 2015, foreign exchange reserves
stood at USD9.6 billion, or 11 months of import cover. This
represents a 13% decline in reserves when compared to
October 2014.
Our key priorities based on the current weakening of
the economic climate include robust risk management,
improved operational efficiencies, enhanced corporate
governance and generation of sustainable results.
On behalf of the Board, I would like to congratulate the
staff of the First Citizens Group on their successes over
the past year. I wish also to express my sincere gratitude
to the staff, customers, investors, shareholders, my fellow
directors and all other stakeholders for their invaluable
contribution towards the continuing growth and
achievements of the First Citizens Group.
Chairman’s Report | 12
Group
Chief
Executive
Officer’s
Report
Karen Darbasie
GROUP CHIEF EXECUTIVE OFFICER
HIGHLIGHTS
The First Citizens Group continued to perform robustly in
2015. Some highlights of this performance include:
• Profit before tax increased by 2.4% from $772.6
million to $790.8 million.
• Profit after tax amounted to $630.4 million or
0.6% growth year-on-year.
• Total assets increased from $34.9 billion to $37.5
billion.
• Standard & Poor’s and Moody’s investment grade
rating of BBB+ and Baa2 respectively.
• The Group’s capital base increased by over 1.4%
from $6.24 billion to $6.33 billion.
• Qualifying capital to risk adjusted assets ratio
remained best of class at 48.12%.
OVERVIEW OF PERFORMANCE
For the financial year ended 30 September, 2015, profit
before tax increased to $790.8 million. Profit after tax
amounted to $630.4 million. The Group’s total assets
amounted to $37.5 billion as at year end, which included
the proceeds from the National Gas Company IPO of
$2.7 billion. There was also significant growth in both
our customer loans and investments portfolios of 24%
and 15.8% respectively. The Group’s funding base grew
marginally by 0.1% to $27.7 billion. We have been able
to significantly grow our loan and investment portfolio
while simultaneously focusing on our asset quality to
ensure improvements in our delinquency ratios and nonperforming loans (NPLs) ratios. At year end 2015 our NPLs
as a percentage of total loans stood at 3.39%.
As a result of our consistent performance, the high
quality of our balance sheet as well as our strong capital
ratios, First Citizens continues to be one of the best rated
indigenous banks in the English-speaking Caribbean by
international rating agencies with Moody’s (Baa2) and
Standard and Poor’s on 9 November, 2015 re-affirming a
rating of BBB+. Our Capital Adequacy Ratio of 48.12% is
the best in the local financial sector.
First Citizens also received the prestigious international
awards and recognition for the period – The Banker
Magazine’s Bank of the Year 2015 Trinidad and Tobago;
the Best Banking Group, 2015 – Trinidad and Tobago by
the World Finance Magazine; the Safest Bank in Trinidad
and Tobago by Global Finance; and was ranked 4th in
soundness by The Banker for its Capital Adequacy. These
are phenomenal achievements especially when the
global economic environment continues to experience
numerous challenges and the local economy shows signs
of recession.
As spreads remain compressed, we have also focused on
our non-interest income product set, which has shown
good growth within the last year. Our fee generating
businesses including Electronic Banking, which provides
efficiency for our clients, and Local Capital Markets (both
debt and equity) have grown. In addition we are seeing
the positive impact of our investments in our businesses
in Barbados and Costa Rica within the context of our
group diversification strategy.
Chief Executive Officer’s Report | 14
BANKING OPERATIONS
SUBSIDIARIES
During the year, the Group continued to focus on the
development of its local retail banking network with its
continued expansion of the ATM network.
The Group’s subsidiaries continued to perform well,
expanding the range of products and services which they
offer and growing in market share and profitability. The
Asset Management Company has increased assets under
management from $13.9 billion to $15.3 billion and its
profit before tax from $95.8 million to $111.9 million.
Trustee Company focused on streamlining its operations
and increasing its revenue generating capability, with fee
income increasing from $36.1 million in 2014 to $39.8
million in 2015. The First Citizens Investment Services
Limited also contributed $131.1 million to profit before
tax.
Implementation of our customer service strategies
continued, and our concentration on marketing and sales
resulted in robust growth in our retail banking products
– instalment loans, mortgage loans and credit cards. In
keeping with our strategic emphasis on this area of our
business, our Electronic Banking Unit was able to launch
new credit card products that increased the credit card
adoption rate and usage.
FUTURE OUTLOOK
SUPPORT SERVICES
During the year our support services remained focused on
risk management, corporate governance and corporate
and social responsibility. We have streamlined our risk
and compliance operations with improved responsibilities
to protocols and functions under the umbrella of risk
management best practices. The Group also implemented
credit card anti-money laundering application that
monitors payments to credit cards and generates alerts for
review and action.
The Group has fully endorsed the Trinidad & Tobago
Corporate Governance Code and is proud to announce
that many of the recommendations noted in the code
have already been adopted by the Group.
Our corporate and social responsibility programme
includes sponsorship of community and cultural-based
organisations; in addition to the continuation of our wellknown and successful existing programmes that build
brand awareness, e.g. financial literacy for the public and
issues affecting women.
15 | Chief Executive Officer’s Report
The global economy is experiencing slow growth in some
of the mature economies, but they are not enough to
offset the losses in emerging markets. A very modest
improvement in the global economy growth rate of 2.8%
in 2016 is projected, up from a forecast of 2.5% for 2015.
The local economy seems to be contracting, with a
forecasted marginal growth of 0.2% for 2015. The energy
sector continues to weaken. Weakness was also noted in
non-energy sector such as distribution and construction.
The financial sector remains sound and is well capitalised
and liquid. Monetary and fiscal policies remain geared
towards stimulating private sector credit and combatting
food inflation.
The condition of the local and regional economies will
require the Group to continue its efforts at managing its
expenses and ensuring robust risk management. Focus
remains on these two (2) main areas in order to ensure
that the growth and stability of the Group continue.
In closing, I would like to express my appreciation to
the Board, our employees and all our stakeholders who,
together, continue to ensure the maintenance of the
Group’s position as one of the most successful financial
institutions in the English-speaking Caribbean.
“First Citizens continues to be one of
the best rated indigenous banks in the
English-speaking Caribbean”
Statement of
Management
Responsibility
The Financial Institutions Act, 2008 (The Act), requires that management prepare
and acknowledge responsibility for preparation of the financial statements annually,
establish and maintain an adequate internal control structure and procedures
for financial reporting, safeguarding the assets of the Group as well as ensuring
compliance with the Act.
It is management’s responsibility to apply the appropriate accounting policies and
make accounting estimates that are reasonable. Management is responsible for
ensuring that the statements presented are a fair and true representation of the
state of affairs of the group which includes ensuring that the information from
which the statements are derived are designed and properly monitored in a manner
which would allow accurate information to be provided. In addition, management
is responsible for ensuring that the information presented is free from material
misstatement whether due to fraud or error.
Management accepts responsibility for the annual financial statements as well
as the responsibility for the maintenance of the accounting records and internal
controls which form the basis of the financial statements. The consolidated financial
statements of First Citizens Bank Limited and its subsidiaries (the Group) are prepared
in accordance with International Financial Reporting Standards and the appropriate
accounting policies have been established and applied in a manner which gives a
true and fair view of the Group’s financial affairs and operating results.
In addition, it is noteworthy to mention that nothing has come to the attention of
management to indicate that the Group will not remain a going concern for the next
twelve months from the date of this statement.
_________________________________________
Group Chief Executive Officer
30 November 2015
_________________________________________
Chief Financial Officer
30 November 2015
17 | Statement of Management Responsibility
Ten
Year
Summary of Selected
Financial Data (2006-2015)
TT$ Mn
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Total Assets
37,538
34,858
36,086
33,804
31,160
29,534
27,714
15,843
15,059
12,662
Total Funding
27,672
27,644
28,085
27,382
25,626
23,989
22,702
12,351
12,469
10,075
Shareholders'
Equity
6,326
6,241
5,965
5,471
5,146
4,900
4,098
2,672
2,193
1,918
Total Loans
13,831
11,154
11,517
10,322
9,020
8,788
7,674
6,559
6,040
5,059
Investments
12,294
10,442
10,305
10,852
10,611
11,175
10,549
4,121
3,193
2,452
791
773
745
714
688
671
621
503
439
404
3.39%
4.54%
4.25%
4.56%
4.55%
1.16%
1.03%
0.80%
0.60%
0.80%
55.80%
54.31%
53.99%
49.53%
46.74%
44.89%
40.46%
43.70%
44.10%
43.60%
Capital/Asset (%)
16.9%
17.9%
16.5%
16.2%
16.5%
16.6%
14.8%
16.9%
14.6%
15.1%
ROAA
1.74%
1.77%
1.74%
1.37%
2.37%
2.19%
2.53%
3.00%
2.89%
2.81%
ROAE
10.03%
10.27%
10.65%
8.40%
14.29%
13.94%
16.31%
19.03%
19.51%
18.38%
As at Sept 30
Profit Before Tax
Non-Performing
Loans/Total Loans
(%)
Efficiency Ratio
(%)
Ten Year Summary | 18
Directors’
Report
The Directors present herewith the annual report and financial statements for the year ended September 30, 2015.
PRINCIPAL ACTIVITIES
The First Citizens Group – defined as the First Citizens Bank Limited (the “Bank”) and its subsidiaries, conducts a broad range
of banking and financial services activities including retail banking, corporate and commercial banking, investment banking,
trusteeship and asset management. The Bank is a subsidiary of First Citizens Holdings Limited, a company which is majority
owned by the Government of Trinidad and Tobago.
REGULATION
The Bank is licensed under the Financial Institutions Act, 2008 and is regulated under the applicable rules and regulations of the
Central Bank of Trinidad and Tobago, the Ministry of Finance and the Securities and Exchange Commission.
FUTURE DEVELOPMENTS
The Group will continue to focus on its core range of services over the next financial year. We intend to strengthen our brand by
enhancing the customer experience.
First Citizens has undertaken a number of initiatives in keeping with the Principles and Recommendations of the Corporate
Governance Code (CG) 2013 and these are set in the CG section of this report.
The Board nonetheless believes that First Citizens’ governance system is effective and that, there are in place, appropriate
structures and procedures to ensure that actual or potential conflicts between the Bank and its controlling shareholder are dealt
with appropriately.
ACHIEVEMENTS
The Group’s total assets stood at $37.5 billion as at the end of September 2015, this represents an increase of 7.7% as compared
to 2014. Profit before tax increased by 2.4% to $790.8 million in 2014 as compared to $772.6 million in the previous year. The
profit after tax amounted to $630.4 million as compared to $626.6 million in 2014. Total Shareholders’ Equity increased by
approximately $84.5 million or 1.4% to $6.3 billion. The dividend yield for the period for the 2015 was 3.76% (2014: 3.21%).
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge and belief:
a) In the preparation of the Annual Financial Statements, the applicable International Financial Reporting Standards have
been followed and there have been no material departure from these standards.
b) That the risk management systems and internal controls are adequate for managing the company’s risk and are being
properly applied.
c) The annual financial statements have been prepared on a going concern basis.
Directos’ Report | 20
DIRECTORS, SENIOR OFFICERS AND SUBSTANTIAL INTEREST
Below are the details of shareholdings of Directors and Senior Officers with an interest in the Company as at 30 September 2015,
together with the shareholdings of their connected parties and our ten (10) largest shareholders.
Director/Senior Officers
Sharon Christopher
Ordinary Shareholdings
Connected Parties
23,227
100
Jason Julien
5,000
Robin Lewis
23,228
Shiva Manraj
20,954
Lindi Joy Ballah-Tull
500
Keshwar Khodai
21,500
Anthony St. Clair
5,000
Raymond Crichton
10,000
Richard Look Kin
1,228
1,153
Sana Ragbir
7,000
664
Ordinary Shares
Percentage
193,982,660
77.18%
14,059,968
5.59%
T&T Unit Trust Corporation/FUS
6,429,389
2.56%
Republic Bank Limited - 1162
1,513,707
0.60%
National Enterprises Limited
1,279,895
0.51%
Tatil Life Assurance Limited
1,175,731
0.47%
Colonial Life Insurance Co (T’dad) Limited
1,110,053
0.44%
RBC Trust (Trinidad & Tobago) Limited - T1136A
1,095,000
0.44%
RBTT Trust Limited - T964
973,497
0.39%
Guardian Life of the Caribbean Limited
958,601
0.38%
The Ten (10) Largest Shareholders
Name
First Citizens Holdings Limited
National Insurance Board
21 | Directors’ Report
ACKNOWLEDGEMENT
The Board of Directors takes this opportunity to express their sincere appreciation for the excellent support and co-operation
received from all its subsidiaries, and the continued enthusiasm, dedication and efforts of the employees of the Group. We are
also deeply grateful for the continued confidence and faith reposed in us by our stakeholders.
By order of the Board
Sharon Christopher
Corporate Secretary
Ian Narine
Director
Ryan Proudfoot
Director
___________________________
___________________________
___________________________
Anthony Isidore Smart
Chairman
Jean Pierre Du Coudray
Director
Courtenay Braemar Williams
Director
___________________________
___________________________
___________________________
Joseph Toney
Deputy Chairman
Hazar Hosein
Director
Director
___________________________
___________________________
___________________________
Franka Costelloe
Director
Joel Pemberton
Director
Cherry-Ann Le Gendre
Director
___________________________
___________________________
___________________________
Directos’ Report | 22
Board of
Board of Directors
Directors
Mr. Anthony Isidore Smart
CHAIRMAN
Anthony Smart graduated from the University of Toronto, Canada with a Bachelor of Arts
(General), majoring in Economics.
He is an Attorney-at-Law who has been in private practice for 43 years, 30 of which he has led the
law firm of Gittens, Smart & Company. He was an elected member of the House of Representatives
of the Parliament of Trinidad and Tobago from December 1986 to November 1991.
At various times between January 1987 and February 1989 he was the Deputy Speaker of the
House of Representatives, Minister in the office of the Attorney General, Minister in the office of
the Prime Minister, and Chief Whip in the House of Representatives. He was Attorney General of
Trinidad and Tobago from March 1989 to November 1991.
Mr. Smart was a tutor in family law at the Hugh Wooding Law School in the 1970s and was
personally responsible for drafting the Code of Ethics for Ministers and Members of Parliament
which was laid in the House of Representatives in 1988.
Mr. Smart was appointed as Chairman of the Board of First Citizens Bank Limited on June 17. 2014
and subsequently as Chairman of First Citizens Investments Services Limited and First Citizens
Costa Rica S.A. He served as Executive Chairman of First Citizens Bank Limited from December 4,
2014 to April 7, 2015.
Mr. Joseph Toney
DEPUTY CHAIRMAN
Joseph Toney is an Attorney-at-Law who has been in private practice for 34 years, leading the law
firm Joseph Toney and Company. He was an elected member of the House of Representatives of
the Parliament of Trinidad and Tobago from 1986 to 1991.
He was the Junior Minister of Government with responsibility for Public Utilities during the period
1986 to 1987, Junior Minister with responsibility for Immigration during the period 1987 to 1989,
Minister in the office of the Prime Minister during the period 1989 to 1990 and Minister of
National Security during the period 1990 to 1991.
Mr. Toney was also a teacher at St Mary’s College, Port of Spain during the period 1972 to 1974.
Mr. Toney was appointed as Deputy Chairman of the Board of First Citizens Holdings Limited on
November 17, 2014 and subsequently as Deputy Chairman First Citizens Bank Limited on January
26, 2015, Director of First Citizens Investment Services (Barbados) Limited on February 23, 2015
and Chairman of First Citizens Asset Management Limited on June 8, 2015.
He also served as Chairman of Taurus Services Limited during the period 1996 to 2001, Chairman
of the Port Authority of Trinidad and Tobago during the period 2011 to 2013, Chairman of the
Congress of the People during the period 2010 to 2012, Secretary General of the CARICOM
Basketball Confederation during the period 1998 to 2004 and President of the National Basketball
Federation of Trinidad and Tobago during the period 1997 to 2001.
Board of Directors | 24
Ms. Franka Costelloe
Franka Costelloe holds a (MSC) Master’s Degree in Building and Construction Management
(with distinction), an (MBOS) Associate Degree in Project Management and (BSC) Bachelor of
Science Degree in Business Administration with a Major in Human Resources.
Ms. Costelloe is a Director of Lifetime Roofing Ltd; a manufacturer, distributor and contractor
specialised in metal and flat roof waterproofing. She has experience in various departments
including: Human Resources, Project Management, Contracts, Budget Planning &
Administration, Sales and Marketing.
She was appointed to the Board of First Citizens Bank Limited on July 3, 2014 and subsequently
to the Boards of First Citizens Investments Services Limited and First Citizens Trustee Services
Limited.
Ms. Costelloe currently also sits on the Trinidad and Tobago Manufacturer’s Association Board.
Mr. Jean Pierre du Coudray
Jean Pierre du Coudray is the Managing Director of the West Indian Tobacco Company
Limited and is also a Leadership Board Member of British American Tobacco Company Limited
Caribbean and Central American Region.
Mr. du Coudray holds a Bachelor of Arts Degree in Economics from the University of Western
Ontario, Canada.
He was appointed to the Board of First Citizens Bank Limited on June 17, 2014 and subsequently
to the Boards of First Citizens Securities Trading Limited, First Citizens Trustee Services Limited,
First Citizens Investment Services Limited and First Citizens Costa Rica S.A. Mr. Du Coudray
currently also sits on the Board of the Trinidad and Tobago Chamber of Industry and Commerce.
Mr. Hazar Hosein
Hazar Hosein is currently the Chief Executive Officer of the Land Settlement Agency, Ministry of
Land & Marine Resources where he formerly held the positions of Manager Corporate Services
and Financial Comptroller.
He holds a Bachelor of Science in Management Studies (Honours) from the University of the West
Indies and is a Fellow Certified Chartered Accountant.
Mr. Hosein was appointed to the Board of First Citizens Bank Limited on June 17, 2014 and
subsequently as Chairman of the Board of First Citizens Securities Limited, and Director of First
Citizens Trustee Services Limited.
He is also an astute and successful businessman and is a Director of the family owned business –
HSM Marketing Company Limited.
25 | Board of Directors
Mr. Ian Narine
Ian Narine has 21 years experience in the financial services industry. He holds a Masters in Business
Administration from Manchester Business School and is a Fellow of the Association of Chartered
Certified Accountants. He is also a Member of the Chartered Institute of Securities and Investments.
Over the course of his career, Ian has fulfilled numerous roles and disciplines across the financial
services industry. He has practiced as an accountant, auditor, corporate finance consultant,
stock broker, investment adviser, portfolio manager, wealth manager and private banker. He
has also been involved in financial analysis and research, macro-economic analysis, financial risk
management and internal audit.
Mr. Narine has had over 10 years of senior management responsibility, including the positions of
General Manager and Managing Director of units and subsidiaries associated with four publicly
listed companies in Trinidad and Tobago.
He was appointed to the Board of First Citizens Bank Limited on August 25, 2014 and subsequently
to the Boards of First Citizens Trustee Services Limited and First Citizens Investment Services
Limited.
He currently also serves as a Member of the Investment Committee of the National Insurance
Board of Trinidad and Tobago, and he sits on the Board of the Trinidad and Tobago Stock Exchange.
Mr. Narine is also a regular contributor to the print and electronic media on matters related to
investing, finance and the economy. He has written over 500 columns for the Business Guardian,
spanning over 10 years.
Mr. Joel Pemberton
Joel “Monty” Pemberton is a Fellow Chartered Certified Accountant from the Association of
Certified Charted Accountants.
Mr. Pemberton is the former Chief Executive Officer of Trinity Exploration & Production Plc, where
he spent ten years and under his leadership, Trinity became the first Trinidad & Tobago company
to list on the London Stock Exchange (AIM) in 2013. During his tenor at Trinity, Mr. Pemberton
raised over US$100 million in private and public equity and increased production by over 300%
together with being the only successful explorer in 2013 with the successful TGAL 1 offshore
exploration well.
Mr. Pemberton first worked as a Chartered Accountant, auditing with Ernst & Young in Trinidad &
Tobago, and in London. His many accomplishments include lead executive on the BP exploration
audit team in London, responsible for the quarterly and annual audit of the worldwide audit,
together with other assurance and advisory services. He was also the lead trainer for the Energy
business unit on accounting and business process models for the upstream energy sector. On
returning from London, Mr. Pemberton spent a year in banking as the Assistant Vice PresidentEnergy Sector of RBTT Merchant Bank Limited. He was instrumental in establishing the Energy
Division of the Merchant Bank and led the initiative with the formation of a private equity fund.
Mr Pemberton is passionate about the development of the local oil and gas industry, and an
advocate for developing the younger generation through active mentorship. He is currently a
Director of the Heroes Foundation and a non-Executive Director on the Board of First Citizens Bank
Limited and Chairman of its Audit Committee, Chairman of the Board of First Citizens Brokerage
and Advisory Services Limited and a Director on the Boards of First Citizens Investment Services
Limited and First Citizens Asset Management Limited. He is a former Director of the Trinidad &
Tobago Energy Chamber, the Diego Martin Rotary Club and the Past Students Union of St. Mary’s
College.
Mr. Ryan Proudfoot
Ryan Proudfoot holds a Bachelor of Arts Degree (with Hons) in Accounting from the University of
Kent at Canterbury, UK and a Masters of Business Administration in International Management
from the University of Exeter, UK.
Mr. Proudfoot is the majority shareholder of Total Office, a Trinidadian headquartered company
that helps people create great office spaces, with subsidiaries in Barbados, and operations in 12
other southern Caribbean countries.
Prior to this, Mr. Proudfoot had a highly successful career in banking, holding the positions of
General Manager, BNB Finance & Trust Corporation and General Manager, BNB Treasury with
Barbados National Bank Inc (renamed Republic Bank (Barbados) Ltd. and a subsidiary of Republic
Bank Limited).
Mr. Proudfoot joined BNB after serving as Business Head and Vice President, Citicorp Merchant
Bank Limited (Barbados Branch) where he was responsible for the re-establishment of Citibank in
Barbados.
Mr. Proudfoot started his career at Citibank Trinidad as a Relationship Manager in the Corporate
Bank where he served for 5 years before moving to live in Barbados.
He was appointed to the Board of First Citizens Bank Limited on July 3, 2014 and subsequently
as Chairman of the Board of First Citizens Investment Services (Barbados) Limited, and a Director
on the Boards of First Citizens Investment Services Limited, First Citizens Brokerage and Advisory
Services Limited and First Citizens Bank (Barbados) Limited.
He also previously served as a Director on the Board of Parex Resources (Trinidad) Ltd, the local
subsidiary of a Calgary head quartered oil exploration company.
Mr. Courtenay Williams
Courtenay Williams is an Attorney-at-Law who has been in practice for 27 years, most of which
have been spent at the private bar, specialising in banking, privatisation, commercial, intellectual
property, project financing, capital market and debt restructuring transactions. Mr. Williams
graduated from the University of the West Indies with a Bachelor of Laws Degree (Honours). He
also obtained a Legal Education Certificate from the Hugh Wooding Law School in 1987.
Mr. Williams is a tutor at the Hugh Wooding Law School in Landlord and Tenant and has previously
also tutored in areas such as Conveyancing and Registration of Title, Ethics Rights and Obligations
of the Legal Profession and Succession.
He was appointed to the Board of First Citizens Bank Limited on June 17, 2014 and subsequently
as Chairman of the Board of First Citizens Trustee Services Limited and a Director on the Boards of
First Citizens (St. Lucia) Limited and First Citizens Financial Services (St. Lucia) Limited.
Mr. Williams is currently also the Chairman of the Legislative Committee of the American
Chamber of Commerce of Trinidad and Tobago, a Senior Ordinary member of the Law Association
of Trinidad and Tobago and a member of the Disciplinary Committee of the Law Association of
Trinidad and Tobago.
Mr. Williams is a past President of the Art Society of Trinidad and Tobago and Deputy Chairman of
the Trinidad and Tobago Film Company Limited.
He is a Consultant with Lex Caribbean, Attorneys-at-Law and Notaries Public.
27 | Board of Directors
Rajesh Rajkumarsingh joined Agostini Limited in 2013 serving in the capacity of Group Chief
Financial Officer and Company Secretary. Preceding this appointment, Mr. Rajkumarsingh
held various positions within the Finance field. After completing his studies in ACCA, Mr.
Rajkumarsingh went on to attain an MBA in Business Administration from the Heriot Watt
University.
Kick starting his career at Pricewaterhouse Coopers as a Trainee Manager, Mr. Rajkumarsingh
then progressed onto being the Finance Director at COSTAATT (College of Science,
Technology and Applied Arts of Trinidad and Tobago). Subsequent to his tenure at COSTAATT
he succeeded in attaining the position of Finance Director at Electrical Industries Limited. In
addition to these positions Mr. Rajkumarsingh also served as the Vice President of Finance and
Subsidiaries at S.M. Jaleel & Company Limited.
Mr Rajkumarsingh is currently a non-executive Director of First Citizens Bank Limited, First
Citizens Holdings Limited and First Citizens Brokerage and Advisory Services Limited.
Cherry-Ann Le Gendre
Cherry-Ann Le Gendre has over 25 years experience in financial management in the Public
Service and is currently the Director of Budgets in the Ministry of Finance.
Ms. Le Gendre is a Fellow of the Association of Chartered Certified Accountants and holds a
Bachelor of Science in Economics and Accounting (First Class Honours) from the University of
the West Indies, Cave Hill Campus.
She was appointed to the Boards of First Citizens Bank Holdings Limited and First Citizens
Bank Limited on April 16, 2015 and April 27, 2015 respectively.
Executive Management
Karen Darbasie
GROUP CHIEF EXECUTIVE OFFICER
Karen Darbasie was appointed Group Chief Executive Officer at First Citizens in April 2015.
She holds a Bachelor of Science (BSc) Honours degree in Electrical Engineering from the
University of the West Indies, a Masters of Science with distinction in Telecommunications
and Information Systems from University of Essex, England and a Master of Business
Administration with distinction from University of Warwick, England.
Prior to her appointment at First Citizens, Ms. Darbasie held the post of Managing Director
of the Merchant Bank, Country Treasurer and Markets Head at the local subsidiary of a
multinational bank. She has also sat on the Board of the American Chamber of Commerce
of Trinidad and Tobago. With over 21 years of experience and such a diverse educational
background, Ms. Darbasie will continue growing the First Citizens brand throughout Trinidad
and Tobago, St. Lucia, St. Vincent and the Grenadines, Barbados and Central America
through the initial extension into Costa Rica. In addition, she sits on the boards of several
subsidiaries within the First Citizens Group.
Sharon Christopher
DEPUTY CHIEF EXECUTIVE OFFICER – OPERATIONS AND
ADMINISTRATION/GROUP CORPORATE SECRETARY
Sharon Christopher, an Attorney-at-Law, has been the Deputy Chief Executive Officer –
Operations and Administration of First Citizens since 2007. The holder of an LLB (Bachelor
of Law-Upper Second Class Honours from the University of the West Indies, St. Augustine),
a Legal Education Certificate from Hugh Wooding Law School and a Master of Laws from
the London School of Economics and Political Science, she has over 28 years of experience
at Executive Management level in the financial services sector.
Her experience and training is wide ranging, covering such areas as corporate governance,
banking operations, information technology, marketing, corporate security, corporate
communications and human resources management. Ms. Christopher, the holder of an
accredited director designation, has held directorships on numerous public and private
sector boards. She currently sits on the Board of St. Lucia Electricity Services Limited and on
the Board of Emera Caribbean Inc. in Barbados. She is also the Chairman of the Advisory
Board of the Institute for Gender and Development Studies at the University of the West
Indies, St. Augustine and a Director and the Corporate Secretary on the Board of the Energy
Chamber of Trinidad and Tobago. In addition, she sits on the boards of several subsidiaries
within the First Citizens Group.
29 | Executive Management
Jason Julien
DEPUTY CHIEF EXECUTIVE OFFICER – BUSINESS GENERATION
Jason Julien is a Chartered Financial Analyst with over 18 years of experience in the
financial services industry. He is the holder of a BSc in Management Studies with honours
from the University of the West Indies, and an MBA from Edinburgh Business School. His
career has covered consultancy with PricewaterhouseCoopers and management positions
at an international bank. He was also employed with one of the largest financial services
conglomerates in the Caribbean, where he managed over $8 billion in assets.
He is a member of the Finance Faculty at the Arthur Lok Jack Graduate School of Business,
and is a commentator on economic, investment and financial matters. Mr. Julien was also
honoured as one of the Distinguished Alumni of UWI, St Augustine. Mr. Julien is a Past
President of the CFA Society of Trinidad and Tobago and has served on the Boards of the
Mutual Fund Association of Trinidad and Tobago, the Securities Dealers Association of
Trinidad and Tobago, as the Vice-Chairman of the Capital Markets Development Committee
of the Central Bank of Trinidad and Tobago, and as Chairman of the Airports Authority of
Trinidad and Tobago. He is currently the Vice President of the Scouts Association of Trinidad
and Tobago and is a Director on the boards of several subsidiaries within the First Citizens
Group.
Executive Management | 30
Senior Management Team
Left to right:
Kirt Tempro – Manager, Systems and Procedures
Margaret Corbie – General Manager, Human Resources
Kurt Valley – General Manager, First Citizens Asset Management Limited
Waltnel Sosa – Corporate Manager, Group Strategic and Corporate Planning
Lindi Ballah-Tull – Head, Legal, Compliance and Governance
Robin Lewis – General Manager, Retail and Commercial Banking
Shiva Manraj – Group Chief Financial Officer, Finance and Planning
Neela Kissoon – Chief Information Officer, Information and Communications Technology
Christopher Sandy – General Manager, First Citizens Trustee Services
Dereck Rajack – Assistant General Manager, Credit Risk and Administration
Akhenaton Marcano – Assistant General Manager, Group Operational Risk and Controls
Glyne Harrison – Chief Executive Officer, First Citizens Bank (Barbados) Limited
31 | Senior Management Team
Left to right:
Brian Woo – General Manager, Corporate and Investment Banking
Ishwarlal Mongru – Head, Commercial Banking
Sana Ragbir – General Manager, First Citizens Investment Services
Kurt Headley – Head, Retail Banking
Avril Edwards – Assistant General Manager, Electronic Banking
Keshwar Khodai – Assistant General Manager, Group Treasury and International Trade
Deborah Moffett – Manager, Shared Services (Acting)
Anthony St. Clair – Chief Internal Auditor, Group Internal Audit
Richard Look Kin – Group Chief Risk Officer
Felipe Castro – Regional Manager, Central America, First Citizens Costa Rica
Senior Management Team | 32
Management
Discussion & Analysis
Management Discussion And Analysis Of Financial Conditions
OVERVIEW
The following discussion aims to offer Management’s perspective on the Group’s financial statements and its general operations
for the year ended 30 September, 2015.
The Group, defined as the First Citizens Bank Limited (the “Bank”) and its subsidiaries, conducts a broad range of banking
and financial services including corporate and commercial banking, retail and electronic banking, investment banking, and
investment management services. The Bank is a subsidiary of First Citizens Holdings Limited (“Holdings”), a company owned by
the Government of Trinidad & Tobago. First Citizens Holdings has 77.2% controlling interest.
This analysis should be read in conjunction with the consolidated financial statements. The information is provided to assist
readers in understanding the Group’s financial performance during the specified period and significant trends that may impact
the future performance of the Group.
The Group measures performance using a Balanced Scorecard concept, focusing on monitoring and measuring strategic
objectives benchmarks to meet financial, customer, internal business processes and employee development.
All amounts are stated in Trinidad & Tobago dollars unless otherwise stated.
Critical Accounting Policies
The accounting and reporting policies of the Group conform to International Financial Reporting Standards (IFRS). Developments
related to these standards are actively monitored and disclosure is provided in accordance with global industry best practice.
SUMMARY OF OPERATIONS
At the end of the financial year ended 30 September 2015, First Citizens Group reported a profit before tax of $790.8 million.
This profit represented $18.2 million or 2.4% growth over the $772.6 million earned in September 2014. Total net income
increased by 4.9% to approximately $1.76 billion whereas operating or core profit increased by $19.6 million to $774.8 million
(2014 - $755.2 million). Profit after Tax amounted to $630.4 million as compared to $626.6 million in 2014.
Overall total assets increased by 7.9% from $34.9 billion to $37.5 billion in 2015. The Group’s funding base increased slightly
from $27.6 billion to $27.7 billion. The Group’s gross loan base increased from $11.5 billion to $14.1 billion, while investments
increased from $11.7 billion to $13.5 billion.
Profit Before Tax
900
800
TT Millions
700
688
745
772
791
714
2012
2013
2014
2015
600
500
400
300
200
100
0
2011
The Group continues to identify threats to the financial sector and formulate strategies to mitigate such risks. The slow rate of
economic growth globally coupled with contraction in the energy sector has led to a decline in the local economy. These factors
Management Discussions and Analysis | 34
considered in the context of high liquidity within the domestic market, and the tepid inflation environment required First Citizens
to take proactive measures to manage our loan and investment portfolios.
Net Interest Income
Net interest income, the most significant contributor to the Group’s net income, accounting for 66.3% of the Group’s total
income, remained relatively stable notwithstanding an unfavourable interest rate environment which resulted from the excess
liquidity in the system.
Over the financial year ended 30 September 2015, interest income decreased by $20.7 million or 1.4% to $1,450.5 million, the
major contributors being investment interest income which accounted for $37.2 million or 6.6% decrease and loan note interest
income which decreased by $12.0 million. The decrease in investment interest income was due mainly to the declining yields
on the investment portfolio which moved from 4.76% in 2014 to 4.13% in 2015. Loan interest income increased by 3.5% to
$838.2 million due to an increase in the average portfolio balance which offset the declining yields on the portfolio of loans.
Interest expense decreased by $33.0 million or 10.5% to $281.5 million. This decrease was due mainly to a decrease in bond
payables interest expenses, partly offset by an increase in other funding (repo) interest expenses.
Net Interest Income
1180
1169
1158
TT Millions
1160
1140
1157
1126
1120
1096
1100
1080
Net Interest Income
1060
1040
2011
2012
2013
2014
2015
Non-Interest Income
The Group continues to focus efforts to mitigate its risks against any negative effects of decreasing yields and resulting tightening
of interest spreads through improvement in its non-interest income.
In the year 2015, non-interest income increased by 13.3% to $594.4 million, accounting for 33.7% of total revenues
(2014: 31.2%). The major contributors to this growth were derived from increased contributions in the categories of fees and
commissions ($44.2 million) and foreign exchange gains ($38.0 million).
35 | Management Discussions and Analysis
Non-Interest Expense
Total non-interest expense increased by $62.6 million or 6.3%, amounting to $988.6 million at the end of September 2015. This
increase was mainly due to the increase in salaries and staff expenses. Within the third quarter, we were able to settle the terms
of the Collective Agreements for the three (3) year period 2012 to 2014, as well as reach an agreement for the current period,
2015 to 2017. The latter includes compensation for our non-managerial staff based on the profit after taxation.
The Group’s efficiency ratio, the ratio of non-interest expenses (excluding impairment provision) to total income increased to
55.8% in 2015. The Group continues to renew its commitment towards increasing efficiency of utilisation of resources and
controlling its expense levels, while delivering superior customer service.
The following table sets forth a summary of changes in interest income and interest expense resulting from changes in volumes
(average balances) and changes in rates:
Year Ended September 30, 2014
vs September 30, 2015
Changes
in Volume
Changes
in Rate
Changes
in Rate/
Volume
Year Ended September 30, 2013
vs September 30, 2014
Total
Increase/
(Decrease)
Changes
in Volume
Changes
in Rate
Changes
in Rate/
Volume
Total
Increase/
(Decrease)
Interest Income
Attributable to:
Investment
securities
39,703
(71,792)
(5,074)
(37,163)
(22,474)
(55,097)
1,943
(75,628)
Loans to customers
79,513
(46,459)
(4,563)
28,491
31,237
(44,504)
(1,686)
(14,953)
Loan notes
(7,559)
(4,850)
367
(12,041)
(3,239)
(6,291)
187
(9,343)
111,657
(123,101)
(9,270)
(20,713)
5,524
(105,892)
444
(99,924)
Customers'
deposits
(11)
(5,829)
1
(5,839)
4,984
(26,348)
(1,318)
(22,682)
Other funding
instruments
606
49,109
608
50,323
(17,422)
(95,706)
11,038
(102,090)
2,467
15
12
2,494
389
(155)
(22)
212
Total increase in
interest income
Interest Expense
Attributable to:
Due to other banks
Debt securities in
issue
(22,120)
(65,644)
7,822
(79,942)
(16,396)
46,995
(4,820)
25,778
Total increase in
interest expense
(19,058)
(22,349)
8,443
(32,964)
(28,445)
(75,215)
4,878
(98,782)
(100,752)
(17,713)
12,251
33,969
(30,677)
(4,434)
(1,142)
Increase/
(decrease) in net
interest income
130,715
Assets And Liabilities
Total Assets were $37.5 billion as at the end of September 2015 up $2.7 billion or 7.7%. This included $2.7 billion in cash due
to NGC (proceeds for TTNGL’s IPO). Significant growth was shown in both our customer loans and investment portfolios of 24%
and 15.8% respectively.
Assets Growth - Total Assets
40000
35000
37,538
36,086
31,160
34,858
33,805
TT Millions
30000
25000
20000
15000
10000
5000
0
2011
2012
2013
2014
2015
The Loan Portfolio
As at 30 September 2015, the gross loan portfolio increased by $2.7 billion to $14.1 billion. Loans increased within most sectors
led by constructions ($988.0 million), transport, storage and communication ($436.6 million), consumers ($396.4 million) and
finance, insurance and other business ($302.4 million).
Non-performing loans as a percentage of total gross loans improved to 3.39% at the close of 2015 compared to 4.54% in 2014.
The credit risk department and business units continue to effectively manage our delinquency, asset quality and credit exposure
by setting and ensuring compliance with our credit limits.
Loan Loss Provisions
The Group accounts for the credit risk associated with lending activities through its allowance for bad and doubtful debts. This
allowance, as determined through the application of the Group’s loan loss provision model, is an expense recognised in the
income statement. Total provision for the Group at the end of September 2015 amounted to $293.6 million, which represents
2.1% of total loans and 0.61 times coverage on the value of total non-performing loans.
Investment Portfolio
Available-for-sale financial assets increased during the year to $10.7 billion from $8.6 billion. This increase of $2.1 billion or
24.4% was mainly driven by liquid assets and there was limited availability for long term investments.
Provision For Taxation
The Group recorded a taxation charge for the year of $160.3 million compared to $146.0 million in 2014. The increase in the
effective taxation rate to 20.3% (2014 - 18.8%) was partially due the maturity of tax exempt instruments during 2014.
Shareholders’ Equity
Total shareholders equity increased by $0.08 billion over the last financial year to $6.3 billion. The increase in the Group’s
capital base was as a result of the increase in net profit for the year, however offset by a reduction in fair value reserves of
$243.9 million arising from increases in TTD interest rates following successive increases in the local Repo rate and dividend of
$302.0 million paid to shareholders.
The Group and its subsidiaries are subject to various capital requirements administered by banking regulators. Such regulators
require that the Bank maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulation) to risk
weighted assets (as defined). This standard corresponds with International Basel standards wherein there is a minimum capital
adequacy ratio of 8%. This is a risk-based capital measure which recognises the inherent credit risk in off-balance transactions.
As at the year’s end, the Group was well capitalised with a capital adequacy ratio of 48.12%.
Total Shareholders’ Equity
7000
6000
5,146
5,749
5,965
2012
2013
6,241
6,326
TT Millions
5000
4000
3000
2000
1000
0
2011
2014
2015
Risk Management
The Group has recognized the need to place greater emphasis on creating a strong risk management culture in order to
understand, manage and evaluate risks versus the rewards being earned. The Risk function is currently divided into four main
risk monitoring areas: Credit, Market, Operational Risk and Business Continuity Planning.
The Enterprise Risk Management framework integrates all aspects of risks across the Group and supports the various business
units within the Group in the effective management of risks. It has been developed in accordance with:
•
•
•
The Committee of Sponsoring Organisations of the Treadway Commission (COSO) – Enterprise Risk Management (ERM)
Integrated Framework, its core methodology for managing risk on an enterprise-wide basis;
The requirements of the Basel Capital Accord as applied in this jurisdiction; and
Other local and international best practices in risk management.
The Group has now enhanced the integration of the COSO ERM framework and the Balanced Scorecard methodology into its
strategic planning process, thus strengthening the control framework within the Group’s operations.
The Group recognises that training is an integral part of building a stronger risk culture. To this end, training in Anti-Money
Laundering for the entire Group is done annually while training on Ethics in Banking and the preparation of risk assessments is
done as required at this time.
An integral part of any control framework is monitoring and assessing its effectiveness over time. The First Citizens Board
acknowledges and understands that it has ultimate responsibility for ensuring and providing oversight for the effectiveness of
the overall risk management and control framework and policies for the First Citizens Group.
Asset/Liability Management
The Group has an active Asset/Liability Committee that comprises senior managers representing key departments within the
Group. The committee is responsible for the management of the interest rate, liquidity and foreign exchange exposures, in the
context of existing market trends. It seeks to optimise the Group’s investments and funding strategies, stabilise net income and
ensure integration with other risk management initiatives.
Credit Risk Management
The Credit Administration function is responsible for the development and fostering of a credit culture that is aligned to the
Group’s strategic objectives and its overall risk appetite. The team critically evaluates individual facilities on a regular basis to
determine their quality and the extent of any reserve or write-off that may be needed.
The Group provides comprehensive training programmes, which enforce the need for prudence, detailed analysis and quality
loan administration without diminishing creativity, flexibility and excellence in customer service.
Specific lending authorities are delegated based on the experience and training of personnel as well as the size of the portfolio.
The lending process and the quality of the loan portfolio are reviewed via a credit-monitoring process utilising a Risk-Rating
System which ensures that timely action is taken to avoid degradation of the portfolio.
Loans are immediately placed on a non-accrual basis if principal or interest is more than three months in arrears (six months in
the case of residential mortgages). This process can be initiated even earlier if the loan is deemed uncollectable in accordance
with the terms of the facility.
Market Risk Management
Market risk is the potential impact on earnings and capital to unfavourable changes in foreign exchange rates, interest rates,
equity prices, market volatilities and liquidity.
The market risk philosophy of the Group is to ensure that no risk is taken unless it is fully understood and can be effectively
managed. The policies and parameters governing market risk exposures are reviewed and recommended by the Asset/Liability
Management Committee, with ultimate approval and responsibility for aggregate risk limits residing with the Board.
Interest Rate Risk Management
Interest rate risk is inherent in many client-related activities, primarily lending and deposit taking to both corporations and
individuals. Interest rate risk arises from these client activities as a function of a number of factors. These include the timing of
rate resetting and maturity between assets and liabilities, the change in the profile of those assets and liabilities whose maturity
changes in response to changes in market interest rates, changes in the shape of the yield curve and changes in the spread. The
yield curve provides the foundation for computing the fair value of future cash flows. It is based on current market yields on
applicable reference bonds that are traded in the marketplace. Market yields are converted to spot interest rates (‘spot rates’ or
‘zero coupon rates’) by eliminating the effect of coupon payments on the market yield.
The Group’s objective in this area is to manage the sensitivity of its earnings and overall value to fluctuations in the yield curve.
To achieve this goal, the Group sets limits in terms of amount, term, issuer and depositor as well as the following:
•
•
•
•
Controlling the mix of fixed and variable interest rate assets
Improving the ratio of earning assets to interest-bearing liabilities
Managing the Interest rate spread
Managing the rate resetting tenors of its assets and liabilities
Computer models are used to calculate the potential change in income that would result from the instantaneous change in rates
on a static portfolio at a point of time on both balance sheet assets and liabilities.
The Group’s fixed income portfolio is also exposed to interest rate risk as the valuation of the assets in the portfolio varies
with local and international interest rates. The Group uses Value at Risk (VaR) to monitor and manage the market risk of the
investment portfolio. VaR is a statistically based estimate which quantifies the potential loss on the portfolio at a predetermined
level of confidence and holding period. To supplement the VaR, the Group also performs stress testing of the investment
portfolio. The market risks arising from the investment portfolio are monitored by Risk Management and are reported to ALCO
and the Senior Management.
The Group is committed to refining its market risk management tools to keep in line with international best practice.
Liquidity Risk Management
Proper liquidity management ensures that the Group meets potential cash needs at a reasonable price under various operating
conditions. The Group achieves this through its strong funding base of core deposits, use of market sources and its short-term
investment portfolio.
Daily monitoring by management of current and projected cash flows ensures that positions can be adjusted to maintain
adequate levels of liquidity.
Operational Risk Management
Operational risk is the risk to earnings or capital arising from problems with service or product delivery. It is a function of internal
controls, information systems, employee integrity and operating processes.
To support the enhancement of operational risk management strategy, the Group has a Systems & Procedures Department,
whose role is to ensure that systems are in place that will assist in maintaining the highest standards of operational efficiency.
This function focuses on the development of flexible and responsive procedures and policies that reduce bureaucracy but provide
a balance between the risk, internal control, and cost management philosophies of the Group.
Management Of Internal Controls
Since 2005, the Group adopted Risk Based auditing. The Group Internal Audit department continues to play a key role in the
ongoing functioning of Enterprise Risk Management by providing objective monitoring of its application and effectiveness. The
activities of this department are guided by international standards set out by the Institute of Internal Auditors. The procedures
of the department have been re-written in strict adherence to the Standards for the Professional Practice of Internal Auditing. In
addition, the COSO and COBIT control frameworks have been inculcated into the audit process.
Frequent internal assessments ensure the quality of these processes; these are subject to an independent external quality
assessment every five years. The next scheduled external review is due in 2017. The Group’s internal audit process continues
to receive the highest rating accreditation. This affirms the department’s independence, objectivity and professional care in
giving assurance on risk management practices, governance initiatives and compliance with policies, procedures, regulations
and legislation. The Audit Committee continues to oversee the operations of the department, ensuring the highest quality of
communications to management and action items are identified for areas of weakness identified.
Compliance Risk
Compliance risk is the risk of legal or regulatory sanctions, financial loss, or loss to reputation the Group may suffer as a result
of its failure to comply with all applicable laws, regulations, code of conduct and standards of good practice. This risk exposes
the institution to fines, civil money penalties and payment of damages, and can lead to diminished reputation, reduced franchise
value, limited business opportunities and reduced expansion potential.
The Compliance function which is a subset of the Legal, Compliance and Governance Unit has the overall managerial responsibility
to develop, establish and maintain effective programs to monitor compliance, prevent and detect lapses and recommend any
necessary corrective action to fully meet the statutory and regulatory requirements and compliance best practice standards in
all jurisdictions in which the Group operates in addition to “Group wide” adherence to compliance programs. The employee
hotline, which allows staff members a confidential medium for making queries or for reporting known or suspected compliance
breaches for investigation, continues in operation and is being utilised by staff. All departments and subsidiaries within the
Group prepare monthly statutory compliance reports for the Compliance Unit, which in turn submits a summary to the various
Boards or the Risk Committees of the Boards, where applicable.
CONCLUSION
The First Citizens Group continued to perform strongly in 2015 with solid growth in Total Asset, and Shareholders’ Equity.
Despite the challenges of continued depressed economic activity, internationally, regional and locally, the Group continues to
position itself as a strong financial institution. Coupled with sound management and corporate governance, the First Citizens
Group continues to be well positioned to maintain its position as one of the most competitive financial institutions in the region.
Group Profile
Office of the Group Chief
Executive Officer
KAREN DARBASIE
MBA (Dist.), M.Sc Telecommunications and
Information Systems (Dist.)
BSc Electrical Engineering (Hons.)
Group Chief Executive Officer
Third Floor, First Citizens Corporate Centre,
9 Queen’s Park East, Port of Spain
WALTNEL SOSA
MBA, BA Mathematics/Computer Sciences
Corporate Manager – Group Strategic and
Corporate Planning
Second Floor, First Citizens Corporate Centre,
Office of the Deputy Chief
Executive Officer
SHARON L. CHRISTOPHER
LLB, LEC, LLM Corporate Law,
Acc. Dir.
Deputy Chief Executive Officer – Operations and
Administration
Office of the Deputy Chief
Executive Officer – Business
Generation
CHRISTINA JAGDEO
LLB, LEC
Manager – Legal
JASON JULIEN
MBA, CFA, BSc Management
Deputy Chief Executive Officer – Business
Generation
Third Floor, First Citizens Corporate Centre
SHASHI SEECHARAN
LLB, LEC
Manager – Legal
Legal, Compliance and
Governance Department
LINDI JOY BALLAH-TULL
LLB, LEC
Head – Legal, Compliance
and Governance
CHARLENE SIMON-THOMPSON
LLB, LEC, BA Language and Literature
Manager – Legal
NATHALIA CAMERON
LLB, LEC
Manager – Legal
GISELLE DE VERTEUIL
MBA, BBA, CAMS
ACCA Post. Grad Dip. Financial Management,
Assoc. of Science Degree Management,
Manager, Compliance
First Floor, First Citizens Corporate Centre,
9 Queens Park East, Port of Spain
KANIKA M. CHARLES
LLB, LEC
Manager – Legal
JULIEANNE GRIFFITH
MSc Financial Management,
BBA Business and Finance
Manager, Compliance – FCIS
17 Wainwright Street, St. Clair
SIMONE BAYLEY
MBA, BA
Manager – Compliance
50 St. Vincent Street, Port of Spain
Group Profile | 42
Corporate and Investment
Banking
BRIAN WOO
MBA, BA Operations Research
General Manager –
Corporate Banking Unit
ANGELA HORDATT
MBA Marketing/Finance,
BSc Chemical Engineering
Head – Government Business
FELIPE CASTRO
Advanced Leadership Program, Mexico (IPADE),
Post degree in Capital Markets,
BA Business Administration
Regional Manager – Central America
Oficentro Eurocenter 1,
Barreal de Heredia, Costa Rica
DERECK RAMLAL
MBA Finance, BSc Economics
Head – Private Sector & Energy
JO-ANNE WARD
Cert. GMDP (Lok Jack GSB)
Senior Account Manager
MARIA MIKE
BSc Computer Science, Cert. GMDP (UWI-IOB)
NADINE PAUL
BSc Management
Account Manager
MARSHIA SAVARY-PHIPPS
Executive Diploma Business Management
Dip. Association of Business Executives,
Certificate in Banking
Manager, Transaction Verification
ROHINI BALLIE
BBA Management & pursuing MBA Oil and Gas
Specialization
Senior Account Manager – South/Energy
Portfolio
SEAN REID
MSc International Finance, BSc Economics
Account Manager – Government Business
Group Enterprise Risk
Management Unit
RICHARD LOOK KIN
Masters Business Administration, Bachelor of
Commerce, CFA, Professional Risk Managers’
International Association (PRMIA)
Group Chief Risk Officer
Office of the Chief Risk Officer,
DERECK RAJACK
BSc Mathematics, FRM
Assistant General Manager – Credit and Risk
Administration
4 Market Street, Chaguanas
DAVID C. M. METIVIER
BA Business Management,
Advanced Dip. Business Administration,
Post Grad Dip. Business Management,
Certificate Banking & Finance (IBAFIT)
Senior Manager – Corporate Credit
SHARON BULLEN
MBA General Management,
Dip. Business Administration
Manager – Corporate/Commercial Credit
FELINA MOHAMMED
MSc International Finance,
BBA International Business
Risk Manager – Group Market Risk
TRAVIS RAMPERSAD
CFA, FCCA, BSc Applied Accounting
Manager Risk – Group Market Risk
AKHENATON MARCANO
BSc Actuarial Science ACBP, FRM
Assistant General Manager – Group Operational
Risk and Controls
First Citizens Investment Services,
Market Street Complex,
CLAUDE NERO
Advanced Dip. – Business Management
Senior Manager – Credit Administration
RAMESH RAMSAMOOJ
MBA (Finance),
BSc Management Studies
Senior Manager – Credit
(Special Assets)
OBIKA GELLINEAU
MSc Information Management,
BSc Chemistry
Manager – Information Security
JOEL SOOKRAM
BSc Computer Science,
MSc Computer Science,
CISSP, CICRA, ITIL V3 Foundation Cert.
Manager – Operational Risk
Learning Centre,
SHERMA LEOPOLD
MBA, ACMA/CGMA
Manager – Commercial Workout Unit
43 | Group Profile
NEESHA GILBERT
MBA (Business Development and Innovation),
BSc Computer Science & Management, ITIL V3
Foundation Cert., MCP, ABCP
BCP Coordinator (Ag)
ROMANUS TSOI-A-SUE
Cert. Executive Development
(UWI - IOB)
Manager – Taurus Services Limited
34 Southern Main Road, Curepe
ABDUL HASEEB ALI
Executive Dip. Business Management
Manager – Taurus Services Limited
34 Southern Main Road, Curepe
NESHA RAMKHALAWAN
BSc Management Studies minor Finance
Corporate Manager
Group Market Risk
Electronic Banking
AVRIL EDWARDS
MBA International Business Management,
BA History & Social Science,
Cert. Principles of Management
Assistant General Manager
– Electronic Banking Unit
First Floor, 62 Independence Square,
Port of Spain
EARL CUMBERBATCH
MBA, Diploma in the Financial Advisors
Programme (Cert. FA)
Manager – Operations and Customer Services
Card Issuing Business
Port of Spain
ROBERT GEORGE
AICB, Cert. Human Resource Management,
Cert. Banking
Manager – Credit Risk Management
(Issuing and Acquiring)
Port of Spain
KANDICE SPENCER
ACCA
Manager – Accounting and Settlement
Port of Spain
NOLA DRAYTON-SMITH
FCCA
Senior Manager – Group Finance
Ground Floor, First Citizens Corporate Centre,
RAY GOPAUL
CIMA Level 1
Manager – Business Development
and Analytics
Port of Spain
KARLA RAUCEO-HULL
FCCA, BSc Computer Science & Mathematics
Manager – Financial and
Management Accounting
RYAN KONG
Manager – Operations & Customer Service
Port of Spain
MARCUS ATHERTON
ACCA
Manager – Taxation and Compliance
RAJDAI KISTO
BSc Management
Manager – Sales Management
Port of Spain
Group Corporate
Communications
MAURICE PHILIP
BSc Chemistry & Management
Manager – Operations Effectiveness
Port of Spain
ALAN SIU KWAN HANG
Channel Manager – Channel Management
Port of Spain
CARLENE MUNROE
BSc Information Systems AIMIS
Product Specialist – Electronic
Banking Unit
Port of Spain
Finance and Planning
SHIVA MANRAJ
FCCA, CA
Group Chief Financial Officer
DEXTER CHARLES
Cert. Chartered Institute of Marketing
Manager – Group Corporate Communications
Second Floor, DHL Building,
Cor. Churchill Roosevelt Highway & El Socorro
Extension Road, El Socorro
Human Resources
MARGARET CORBIE
MBA, BBA
General Manager – Human Resources
KIRLYN ARCHIE-LEWIS
MSc Management,
BSc Management (HR Specialisation),
Advance Dip. Business Administration
Manager – Recruitment & Selection/ Talent
Management
Group Profile | 44
ORA AGARRAT
Advance Dip. Industrial Relations,
Dip. Labour Studies,
Cert. Human Resources,
Cert. Executive Development (UWI-IOB)
Manager – Employee Relations/Engagement
JANINE DELZIN-BURKE
BSc Sociology and Management
Manager – Regional & Subsidiary Operations
SASHA MARTIN
BSc Economics, Minor in Psychology
Assistant Manager – Recruitment and Selection
Information and
Communications
Technology
NEELA MOONILAL-KISSOON
MBA, BSc, CISA, CRISC
Chief Information Officer
Cor. Park & Henry Streets, Port of Spain
GREGORY BISSESSAR
Masters Cert. Project Management,
ITIL V3 Foundation Cert.
Senior Manager – Service Delivery
ANIL BARRAN
BSc Computer Science & Physics,
Manager – Network Architecture
DENNIS KHAN
MBA Entrepreneurship,
Innovation and Leadership,
ITIL Foundation, MCP, MCSE,
MCDBA, MCSA,
IMIS Dip. Information Systems, LIMIS
Manager – Systems Architecture
CHRISTOPHER SEEMUNGAL
Executive Dip. Business Management (Lok Jack
GSB),
Manager – Service Delivery
45 | Group Profile
MARK CAPE
BSc Information Systems & Management (Hons.)
Manager – Electronic Banking Support
121 Henry Street, Port of Spain
SITA MOHAN
MBA, BSc Computing &
Information Systems
Change Release Manager
ROBERT ROMERO
ITIL V3 Foundation Cert., BSc Computing &
Information Systems, Cert. Management
Manager – Database Administrator
ERROL DOS SANTOS
EMBA, Dip. Business Administration,
ITIL V3 Foundation Certification, CICRA, CISA
Corporate Manager – Service Support
LINDA MALLIAN
BSc Computing
Manager – Applications Support
SEBASTIEN ACHILLE
EMBA, Cert. GMDP (Lok Jack GSB)
Manager – Banking Applications
Group Internal Audit
ANTHONY ST. CLAIR
CIA, FCCA, CA, BSc Industrial Management
Chief Internal Auditor
80-84 Charlotte Street, Port of Spain
KEVIN BAPTISTE
Post Grad. Diploma, FCCA
Manager – Internal Audit
KAREN MILLER-PHILIP
BBA Management (Concentration in HR and
Finance), CFE
Audit Manager – Subsidiaries & Corporate
Services
SEAN ANTHONY
BA English, Cert. FA
Audit Manager – Banking &
Support Services
JULIA MARIA DANIEL
BSc Management Studies,
Assoc. Degree,
IS Management, ACP
Audit Manager – Information Technology
URMILLA PERSAD
BSc Social Sciences, CISA,
CISM, CRISC, MCSE, CEH,
Manager, Internal Audit,
Technology, Security &
Change Management
MAXAYNE SPENCER
ACCA
Manager - Audit
Marketing Department
DAMIAN COOPER
ACIM (Post Grad. Dip.), BSc Business
Administration
Manager – Marketing
CORELLI LYONS
Cert. Management, AAT
Manager – Customer Service
JENELLE HOLLOWAY
MSc Marketing, BSc Business Administration
Manager – Product Management
Commercial Banking
ISHWARLAL MONGRU
BSc. Economics
Head – Commercial Banking
20-24 Eastern Main Road, Tunapuna
MARK PARKINSON
(UWI - IOB)
Manager – Transaction Verification Unit
Group Facilities
Management Services
KEITH SPENCER
MSc Real Estate & Property Management,
BSc Land Surveying,
Dip. Project Management
Senior Manager – Group Facilities Management
Services
45 Abercromby Street, Port of Spain
IFE PHILLIP
MSc Strategic Leadership and Management,
BSc Health, Safety & Environment Management
Manager – Health, Safety & Environment
DIBIA HODGE
MBA Leadership and Innovation,
BSc Geomatics, PMP Certificate
Manager - Group Facilities Management Services
Security Services
KURT HEADLEY
MBA – Business Management Anglia Ruskin
University
Dip. Management Studies, Cert. Management
Studies
Head – Retail Banking
Group Operations and
Process Improvement
DIRK HART
MBA, BA Marketing
Head – Private Banking
3rd Floor, Abercromby Street, Port of Spain
KIRT TEMPRO
BSc (Hons) Computing,
CISA (Non- practicing),
AIMIS
Manager – Systems & Procedures
76 Boundary Road, San Juan
CINDY GOOLCHARAN
MSc Marketing, BBA Management, Customer
Service Certification
Manager – External Sales Unit
3rd Floor, Abercromby Street, Port of Spain
ROMA WILKINSON
BSc Economics
Manager – Consumer Lending
HAYDEN DE FOUR
BSc Management Studies, Certified Protection
Professional (CPP), Professional Certified
Investigator (PCI) Manager
ADANNA BRANFORD-STEWART
MBA, BA Economics, AAS Information
Technology, Professional Dip. Marketing & Sales
FIONA PERKINS
BSc Political Science & Sociology, Dip. Advanced
Financial Crime Prevention
Assistant Manager
KAREN ATHERLY-DOWDING
Manager Projects – Retail Banking
SuperPharm Building,
2 South Trunk Road, La Romain
Retail Banking
Centralised Collections Unit
ROBIN LEWIS
MBA, Dip. Business
Management
General Manager – Retail and
Commercial Banking
DEREK FRANCIS
Executive Dip. Business Management,
Cert. ACCA (Level 11)
Manager – Central Collections Unit
23-27 Eastern Main Road,
San Juan
DEBORAH MOFFETT
Grad ICSA, Cert. GMDP (Lok Jack GSB), MBCP
Manager – Shared Services (Ag)
ANELLA CARR-TOYER
Executive Masters Business Administration
GMDP – Executive Diploma Business
AdministrationManager – Process Re-Engineering
HAZEL GRANT-CHEVALIER
BBA Management, APS,
Cert. GMDP
(Lok Jack GSB)
Manager – Centralised Operations
MAUREEN CRAIG-ROUSSEAU
ACIB, Cert. Banking IBAF, AML/CA
Manager – Payment Processing Centre
CHRISTINE HERNANDEZ- BRYANT
Cert. Executive Development (UWI/IOB)
Manager – Central Branch Support Unit
DEBORAH JAMES
Cert. Management Studies, Dip. Human
Resource Management,
Manager – Cash Management Centre
MARIO YOUNG
FCIB, FIBTT
Corporate Manager Special Projects – Retail
Banking
Group Profile | 46
Group Project
Management Office
First Citizens Asset
Management Limited
PRINCESS ADAMS
PMP (Project Management Professional),
MBA Entrepreneurship & Business Venturing,
Masters Cert. Project Management,
BA Business & Finance, ITIL V3 Foundation Cert.
Head- Group Project Management Office
KURT VALLEY
MBA, BBA
General Manager
CAROL RAMNANAN
PMP (Project Management Professional),
BA Management
AMABE Business Management
Project Manager
Treasury/International
Trade Centre
KESHWAR KHODAI
BSc Chemistry and Management,
CFA Level II
Assistant General Manager – Group Treasury and
International Trade
NICHOLAS CHEN
MBA – International Finance Bachelor Business
Administration
Senior Manager – Trading
ANNE DOOBARRY-CLEMENT
Senior Manager – Operations and Finance
CHRISTOPHER ALI
ACCA
Senior Manager – Treasury
AMOL GOLIKERI
MBA Finance, BSc (Econ)
Assistant General Manager – Investments and
Investment Operations
GILLIAN BENJAMIN
MBA Business Administration, BSc Management
Studies
Strategic Marketing & Sales Manager
GREG FERREIRA
CFA, BSc Management Studies, Finance (minor)
Senior Manager – Investment Management
TENISHA ALI
BBA, Finance (Concentration)
Portfolio Manager
DIRK BOSLAND
BBA Finance & Human Resources
(Concentrations)
Manager – Investment Operations & Process
Improvement
PATRICIA LEWIS
BSc Accounting
Manager – Operations/Fund Administration
JUDY OXLEY-FULLERTON
LCCI Dip. Managerial Principles & Public
Relations, Post Grad. Dip. Marketing,
Dip. MACIM, Dip. Fin. Management – ACCA
Manager – Marketing & Sales Development
MARITZA FERREIRA
BSc Management, minor Finance
Investment Manager
47 | Group Profile
Trustee Services Limited
CHRISTOPHER SANDY
MSc Accounting, CFA, BSc Management Studies
General Manager
MARCIA TONEY-GOODING
CMA, Bachelor’s Degree in Commerce
Manager – Financial Accounting
MICHAEL LALL
Associate of the Society of Actuaries, BA
Mathematics (Hons Actuarial Science)
Manager – Pensions Administration
TESSA CLIFFORD
LLB, LEC, LLM
Manager – Trust Services
GRACE M. LIMA
ACCA
Assistant Manager – Financial Accounting
50 St Vincent Street, Port of Spain
BRANCHES
Arima
KURT PHIPPS
Cert. Executive Development, (UWI-IOB),
Cert. Business Management
Manager
Cor. Hollis Avenue and Woodford Street, Arima
MICHELLE PHILLIPS-ROSE
MABE, IBAF, Adv. Dip. Business Administration
Assistant Branch Manager
Cor. Hollis Avenue and Woodford Street, Arima
Chaguanas
BALDATH MAHARAJ
MSc. Marketing, CIM
Manager
Market Street Extension, Chaguanas
COONTIE RAMCHARAN
Executive Diploma Business Management (Lok
Jack GSB)
CHERYL-ANN LA ROCHE
LLB, Dip. Banking
Cluster Manager (Ag)
Commercial Business
Centre – Gulf View
Commercial Business Centre
– Chaguanas
RAVI RAMLOGAN
BSc Management Studies, Finance
SALOME RAMDIAL
BSc Management Studies, Cert. GMDP (Lok Jack
GSB)
NATALIE SIEWDASS
BSc Management
Account Manager
VASHTI PHEKOO
MBA Marketing & Finance,
Senior Manager
RAYMOND LATCHMAN
BSc Banking & Finance
Account Manager
Couva
EDWIN CHARIAH
Branch Manager
Southern Main Road and Noel Street, Couva
MARCIA GOUVEIA
Executive Masters of Business Administration
(Lok Jack GSB, U.W.I)
ASc Human Resource Management, IBAF Cert.
Banking
Southern Main Road and Noel Street, Couva
VASHTI PHEKOO
MBA Marketing & Finance,
Senior Manager
Gulf View
BRENDA SINGH
Cert. Executive Development (UWI-IOB)
Cluster Manager – South Manager (Ag)
2 South Truck Road, La Romain
Independence Square
GARY LE BLANC
(UWI-IOB)
Branch Manager
62 Independence Square,
Port of Spain
JENNYLYN DANIEL BRANKER
Dip. Executive Managerial Development,
Cert. Project Management, Cert. CIM,
Cert. Marketing & Public Relations
62 Independence Square, Port of Spain
Marabella
RUSSEL BACHAN
MBA Marketing, BSc Industrial Management
Branch Manager
Southern Main Road, Marabella
Maraval Road
Montrose
ANDRA SANKAR
IAM Adv. Dip. Administrative Management, BA
Strategic Administrative Management
Branch Manager (Ag)
Main Road Montrose, Chaguanas
MovieTowne
Financial Centre
STEPHEN PENNIE
Executive Dip. Business Management (Lok Jack
GSB, U.W.I)
Branch Manager
Movie Towne, Invaders Bay,
Port of Spain
One Woodbrook Place
JACQUELINE JUMAN
MBA General Management, Dip. Business
Administration
Cert. Executive Development (UWI- IOB),
Cluster Manager – North Branches
One Woodbrook Place, 189 Tragarete Road,
Port of Spain
RACHAEL JUMAN
BA Business Management, Dip. Banking (IBAF),
Manager
Port of Spain
AMRIKA ATWELL
MSc Project Management, BSc Statistics &
Economics
Port of Spain
NADINE HARDING-MOHAN
MBA Marketing, MSc Econ.,
BSc Econ.
Branch Manager
44-46 Maraval Road, Port of Spain
CURTIS HINKSON
BA Human Resource Management, Cert. Human
Resources
44-46 Maraval Road, Port of Spain
ZORINA MOHAMMED
Cert. Executive Development (UWI-IOB),
Dip. Administrative Management – IAM
Branch Manager (Ag)
2 South Truck Road, La Romain
Group Profile | 48
– One Woodbrook Place
REYNOLD THOMAS
ABE Adv. Dip. Business Administration, Cert.
Banking. GMDP
Port of Spain
SIMON BURKE
Executive Dip. Business Management
Account Manager
Port of Spain
NADINE RAMLOGAN
BSc Psychology
Account Manager
Port of Spain
Park & Henry Street
MARGARET JONES
Cert. Banking, Management Studies
Branch Manager
Corner Park and Henry Streets,
Port of Spain
DENESE H. PATTERSON
MBA Entrepreneurship, Innovation and
Leadership, BA Business Management, AMABE
Business Administration
Corner Park and Henry Streets,
Port of Spain
Penal
TRUDY NOOR
Post Grad. Dip. Management, Cert. Human
Resources Management (UWI)
Branch Manager
27 Penal Rock Road, Penal
49 | Group Profile
Princess Town
Sangre Grande
MARIA PUSTAM
MA Management, BBA (Hons) Marketing, Assoc.
Science Degree – Management
Branch Manager (Ag)
21 High Street, Princess Town
BERNADETTE BROWN
Cert. FA, Executive Dip. Business Management
Branch Manager (Ag)
Eastern Main Road, Sangre Grande
MARLON WILLIAMS
Exec. Dip. Business Management
21 High Street, Princes Town
Point Fortin
MARLENE JOHN
BSc Management Studies,
Cert. Financial Planning
Branch Manager (Ag)
Cor. Southern Main Road & Cap de Ville Road,
Point Fortin
SAVITRI JOHN
Executive Masters in Business Administration
(UWI) Executive Dip. Business Management (Lok
Jack GSB) Cert. FA, Cert. Banking (IBAF)
Eastern Main Road, Sangre Grande
St. Vincent Street
HOLLAND BRONTE TINKEW
Post. Grad. Dip. Bus. Admin.,
BA Business Administration,
Cert. Financial Advisors Branch Manager
Point Lisas
San Fernando
CALLISTRA WILLIAMS
FCCA, Cert. Executive Development (UWI-IOB)
Branch Manager
Cor. Atlantic Avenue & Orinoco Drive, Point Lisas
ANNA ASSIU
Cert. Executive Development (UWI-IOB),
Certified Financial Planner
Branch Manager
Cor. High Street & Penitence Streets,
San Fernando
ELIZABETH MAHARAJ
GMDP Lok Jack (GSB)
Cor. Atlantic Avenue & Orinoco Drive, Point Lisas
San Juan
DIANNE GOPAUL
Branch Manager
23-27 Eastern Main Road, San Juan
DEBRA LENDOR-GRANT
Masters (Business Administration),
Executive Dip. Business
Management, Cert. FA
23-27 Eastern Main Road, San Juan
Siparia
SATYAN SEURAJ
Executive Dip. Business
Management, Cert. FA
Branch Manager
2 High Street, Siparia
Tunapuna
MARLON SEALE
MBA, Cert. ACCA (Level 1),
Branch Manager – Tunapuna
JEAN GEORGE-BAPTISTE
Post Grad Dip. Public Administration,
BSc Social Sciences, Cert. GMDP (Lok Jack GSB)
– Tunapuna
KEVIN MOHAMMED
MBA (Finance), ABE Advanced Dip.
DAVE KHAN
Cert. GMPD (Lok Jack GSB)
Account Manager
Market Street Extension, Tunapuna
Tobago
ANDREA TUITT
BA Business & Finance,
ABE (Advanced Dip.),
Branch Manager – Tobago Branches
Milford Road, Canaan, Tobago
ARLENE ST. LOUIS-BRAITHWAITE
Executive Diploma Cert.
GMDP (Lok Jack GSB)
Assistant Branch Manager – Canaan
Milford Road, Canaan, Tobago
BELINDA EDWARDS
BSc Management Studies – UWI
Assistant Branch Manager – Scarborough
Scarborough, Tobago
West Court Branch
CHARMAINE MYLAN
MBA Business Administration, Executive Dip.
Business Management
Branch Manager (Ag)
West Court, Diego Martin
First Citizens
Investment Services
Trinidad and Tobago
SANA RAGBIR
MBA, CFA, BSc Chemistry/Management
General Manager
NARDA CLARKE-MOHAN
FCCA
Corporate Manager – Operations
SASCHA SYNE
BBA (Fin), MSc Financial Management
Senior Manager – Capital Markets
BEVERLY DURITY-BAPTISTE
MBA University of Manchester, ACCA
Head – Finance
MELANIE DARBEAU-AYOUNG
BSc Management Studies, Associate Degree
Business Administration
Assistant Manager – Operations
VANGIE BHAGOO-RAMRATTAN
MSc Economic, BSc Economics (UWI)
Head – Research
KEISHA MAC QUAN
MBA, BSc Management Studies
Centre Manager – North Wealth Management
DONNA LA PIERRE-DAVID
ACCA, MSc Financial Management
Manager – Finance
DAVE DOOKIE
MSc Finance, BSc Accounting & Finance
Corporate Manager – Structuring and Advisory
VISHWATEE JAGROOP
Bachelor of Commerce, CFA
Corporate Manager – Proprietary Portfolio
Management
TARIQ ALLI
MBA, BSc Accounting
Head – Capital Markets
DANIEL YOUSSEF
MBA, BA International Business Administration
Head – Wealth Management
ROMESH DRAKES-MC KELL
BSc Information Systems
Wealth Manager
GILLIAN PAGEE
BSc Management, Post Grad. Dip. Customer
Service Management,
Dip. FM (ACCA)
Senior Manager – Wealth
Management Centres
17, Wainwright Street, St. Clair
GIA SINGH
MBA Innovation & Entrepreneurship, BSc
Management
Wealth Manager
LESLIE ST. LOUIS
ACCA, Associate Membership
Manager – Brokerage Services, FCBAS
MARGARET MAHABIRSINGH
Certified Financial Planner
Centre Manager
46 Lady Hailes Avenue, San Fernando
STERLYNE SMITH
FCCA
Manager – Finance
SHERMA MAHABIRSINGH
BSc Economics & Management
Manager – Pension Plans and Private Portfolio
Group Profile | 50
SHANE SEEPERSAD
MSc. International Finance, BSc. Mathematics
and Economics
Investment Manager
17 Wainwright Street, St Clair
MIKKEL JACKSON
BA Business and Finance
Manager - Capital Markets
17 Wainwright Street St Clair
SUNITA TIWARI
MBA, BA Business Management
Manager - Strategic and Business Development
KENDALL HYPOLITE
MBA Business Administration,
BA Human Resources, Cert. FA
Services Barbados
ELIZABETH MORGAN
MA, BSc Management
Country Manager
Warrens Great House,
Warrens, St. Michael, Barbados
First Citizens
Investment Services
St. Lucia
CAROLE ELEUTHERE-JN MARIE
ACCA, BSc (Hons) Accounting
Regional Manager – Eastern Caribbean &
Barbados
9 Brazil Street, Castries, St. Lucia
LAVERN ROACH
MBA Banking and Finance, BSc Management
Studies
Business Development Manager
9 Brazil Street, Castries, St. Lucia
51 | Group Profile
First Citizens
Investment Services
St. Vincent and
the Grenadines
NORLANN GABRIEL
MBA Finance, BBA Finance & Economics
Country Manager
Third Floor, Sprott Bros. Plaza, Bay Street,
Kingstown, St. Vincent & the Grenadines
First Citizens Bank
(Barbados) Limited
BRANCHES
Carlisle House
GLYNE HARRISON
CMA, MSc Financial Management
BSc (Hons) Economics & Management,
Chief Executive Officer
Carlisle House, Hincks Street,
Bridgetown, Barbados
AVRIL HUSBANDS
MBA, BSc (Hons) Economics, Dip. Ed
Senior Manager – Human Resources
VASHTI INCE
BSc Economics & Management, Dip. Financial
Management Services
Senior Manager – Credit Risk Management
DONNA MILLER
BSc (Hons) Accounting, FCCA, CIA
Manager – Internal Audit
Carisle House, Hincks Street,
NICOLA HARRIS
MSc Human Resource Management,
BSc. Economics and Management
Professional in Human Resources (PHR)
Manager – Human Resources
JACQUELINE BROWNE
FCA, CGA, BSc (Hons) Accounting,
Senior Manager & Chief Financial Officer –
Finance & Treasury
DEBBIE BROWNE
BSc (Hons) Psychology & Sociology,
LLB (Hons.), LEC (Hons),
Assoc. Degree. – Economics & Law, STEP Dip. In
International Trust Management
Manager – Legal & Compliance
KAYE-ANNE BRAITHWAITE
MSc Business and Financial Economics, BSc
Economics and Accounting
Senior Manager Commercial and Consumer
Credit
RHEA WELCH
MSc Financial Management Services,
BSc Economics & Management
Assistant Manager – Commercial & Consumer
Lending
BEVERLEY NORVILLE
MBA, Executive Dip. Management,
Senior Manager – Retail Banking & Central
Services
Lower Broad Street,
DACOSTA HOLDER
BSc (Hons) Agricultural Science,
British Bankers Certificate
Assistant Manager – Commercial & Consumer
Lending
Electronic Banking Unit
Welches
SONNIA SQUIRES
BA, History & Law
Manager – Electronic Banking Unit
DEBORAH JONES-WILSON
BSc Economics & Management, Dip.
Administrative Management
Branch Manager,
Welches St. Thomas, Barbados
ANTHONY PILGRIM
Assistant Manager – Recoveries Credit Risk
Management
KATHY HOWELL
BSc Sociology
Assistant Manager – Electronic Banking Unit
RAMONA STUART
Welches St. Thomas, Barbados
TYRONE FORDE
Assistant Manager – Credit Risk Management
RENEE PETERS
ACCA, BSc (Hons) Mathematics & Accounting,
Assistant Manager – Finance & Treasury
KAREEM MCCLEAN
BSc. (Hons) Management, Associate Degree
Tourism & Travel
Marketing & Communications Officer
Carlisle House, Hincks Street
EMERALD HOLDER
MBA, Certified Property Administrator,
Specialization in Engineering Management
University of Michigan
Facilities and Health & Safety Officer
CHARLES GILL
MSc Corporate Risk & Security Management,
Executive Diploma in Management Studies,
Associate Certified Administrative Manager
(ACAM)
Operational Risk Analyst
Lower Broad Street
Collymore Rock
KELLY-ANN CODRINGTON
MSc International Management, BSc (Hons)
Management,
Retail Banking & Central Services
Sargeants Village,
Christ Church, Barbados
JBs
LISA BRANCH
Executive Dip. Banking & Finance, Associate
Degree Hotel Management
Assistant Manager - Operations
JB’s
Sargeants Village
Christ Church, Barbados
Somerly
DAWN HENDRICKS
EMBA, BSc (Hons) Management Studies,
Branch Manager – Retail Banking & Central
Services
Worthing Christ Church, Barbados
MARLENE WILTSHIRE
Associate Institute of Canadian Bankers
Lower Broad Street,
CELIA CADOGAN
Dip. Banking & Finance
Assistant Manager – Central Services
Lower Broad Street,
HENDERSON SOBERS
MBA, Dip. Business Information Systems
Manager – Information & Communication
Technology
Lower Broad Street,
Core Conversion
DIONNE KNIGHT
BSc (Hons) Sociology & Psychology
MARIA BOWEN
Dip. Finance & Banking
Worthing Christ Church, Barbados
Group Profile | 52
Corporate
Governance
First Citizens remains committed to the implementation, as far as this is possible, of the recommendations and guidelines
espoused in the Corporate Governance Code 2013.
As a result of the significant work undertaken by the Corporate Governance Committee, the Human Resources Committee of
the Board, and by the Management, the following activities were undertaken during the fiscal year ended September 30, 2015.
PROCUREMENT POLICY
The development of a Procurement Policy details the rules and guiding principles that must be followed by all Officers of First
Citizens. It is intended to replace the current Tenders Rules of the First Citizens Group and is aligned as closely as is possible
with the public procurement legislation. This policy was developed to make certain that goods and services are procured in an
economical, timely, transparent and consistent manner by First Citizens. Moreover, the said policy describes, inter alia:
1. The ethical underpinnings of the policy
2. The role of local content and valued account holders to this process
3. The role of the key Committees, (Evaluation, Tenders, Board)
4. Identification of Needs and the use of a Purchase Requisition
5. Treatment of Exempt purchases (goods/services identified)
6. The identification and addressing of procurement methods and the outlining of processes in support of the same
7. The process for the development and issue of Requests for Proposals/Tenders
PRE-QUALIFICATION AND VENDOR MANAGEMENT POLICY
A pre-qualification and vendor management policy was developed by Management and approved by the Board. The Policy
provides that only Vendors who have the required experience, technical skills, financial resources and capability to supply
goods and services will be invited to pre-qualify. Moreover, the policy allows Vendors to be assessed against pre-determined
requirements. Those Vendors who satisfy the pre-qualification requirements will be placed on the pre-qualification register
maintained by the Group.
INVESTOR RELATIONS POLICY STATEMENT
An investor relations policy was developed which sets out the commitment of First Citizens to create and maintain a climate
of open communication, founded upon the principles of timeliness, transparency and accuracy in the disclosure of material
information between itself, its shareholders and key stakeholders. This ensures that First Citizens will provide current shareholders
and prospective investors with information necessary to make well-informed investment decisions and to promote fairness and
equal opportunity amongst the stakeholders of the First Citizens Group. A copy of this statement has been placed on our
website.
53 | Corporate Governance
INSIDER TRADING POLICY
First Citizens made revisions to its insider trading policy to continue to refine/tighten the internal controls around trades/
transactions:
1. In FIRST shares
2. In the Securities of the Bank and its various subsidiaries in the jurisdictions in which the Group has a presence
3. In securities in companies with which the companies of the Group do business, or may do business, or in which the Group
has invested or might intend to invest
Where senior officers of the Bank and other companies of the Group are in possession or may be deemed to be in possession of
Material Non-Public Information (or “price sensitive” information).
A copy of this policy has been placed on our website.
BOARD CHARTER
The Board Charter of the Bank (as “Parent Company”) was revised to ensure that all Directors acting on behalf of the Group
continue to be aware of their duties and responsibilities as Directors, the various legal requirements and accompanying obligations
affecting their conduct and the principles and practices of good Corporate Governance to be applied in their dealings in respect,
and on behalf of, First Citizens. This Board Charter is not an “all inclusive” document and should be read as a broad expression
of principles. The Charter includes but is not limited to the roles and responsibilities of the Chairman, Corporate Secretary and
individual members and in maintaining full and effective control over the Bank and other companies that comprise First Citizens.
The revised Board Charter will be used as our basis for crafting the Charters for the other subsidiaries within the Group subject
to such modifications that may be necessary having regards to that particular Company’s business.
INDEPENDENCE OF DIRECTORS
First Citizens remains committed to the principles of the Corporate Governance Code, however, we are not in a position to fully
implement the provisions with reference to Independence of Directors, given that we are a State Ownership Enterprise.
VACANCIES
During the year, the following key vacancies were filled:
1. Group CEO
2. Deputy CEO – Business Generation (formerly Banking Operations)
3. Head – Retail Banking
4. Head – Commercial Banking
5. Chief Risk Officer – Designate (to replace outgoing CRO)
6. General Manager – Human Resources
Corporate Governance | 54
Corporate Governance Committee
A Corporate Governance Committee is central to the effective functioning of the Board, as it provides a leadership role in shaping
the corporate governance of the Group. The responsibilities of this Committee include establishing criteria for Committee
membership, rotation of Committee members, reviewing any potential conflicts of interest between Board members and the
Group, and monitoring and safeguarding the independence of the Board.
OTHER RESPONSIBILITIES INCLUDE:
1. Integrity of information – Overseeing and reviewing the Group’s processes for providing information to the Board. This is
done through an assessment of the reporting channels through which the Board receives information, and the assessment
of the quality and timeliness of information received.
2. Corporate governance principles – Developing and recommending a set of corporate governance principles applicable to
the Group. The Committee also reviews the composition of all Board Committees and their terms of reference, and brings
to the Board for approval a code of best practice for the functioning of these Committees.
3. Evaluation of performance – Developing an effective mechanism for an annual evaluation of the performance and
effectiveness of the full Board, the operations of Committees and the contributions of individual directors.
THE MEMBERS OF THE COMMITTEE ARE:
Courtenay Williams – Chairman
Franka Costelloe
Feona Lue Ping Wa
Board Enterprise Risk Management Committee
To assist the Board of Directors in fulfilling its responsibilities, the Board Enterprise Risk Management Committee was established
to provide oversight of the Group Chief Executive Officer’s and Senior Management’s responsibilities regarding the identification
and management of the Group’s market, operational, compliance and reputational risks, which includes the development of
strategic initiatives to address changing conditions.
In fulfilling its mandate, the Committee, through the Group Chief Risk Officer, has oversight of the Group’s Market Risk
and Operational Risk and through the Chief Compliance Officer, for aspects of the Compliance Units, while having overall
responsibility for:
1. Overseeing Senior Management’s implementation of a Group-wide risk management framework and the development of
a defined risk appetite, while ensuring alignment to the Group’s risk profile contained within the strategic plan, goals and
objectives for the Bank and its subsidiaries/affiliates.
2. Reviewing with Senior Management the Group’s processes (including policies, procedures, guidelines, benchmarks,
management committees and stress testing) for the identification and management of the risks associated with the
business of the Group.
3. Planning for anticipated changes in these risks, in line with changes in the environment and changes in business strategies.
The Committee shall also receive and review reports from senior management regarding compliance with applicable riskrelated policies, procedures and tolerances, and review the Group’s performance relative to same.
4. Reviewing management’s activities with respect to capital management and liquidity planning, including approval of
management’s plans with respect to liquidity sources, dividend policy, the issuance, repurchase or redemption of equity or
other securities, and the issuance and repayment of the Group’s debt.
5. Receiving and reviewing reports on selected risk topics as management or the Committee deems appropriate.
6. Reviewing and discussing with management significant regulatory reports of the Group and remediation plans related to
such.
7. Meeting at least annually with the Group Audit Committee on topics of common interest.
8. Reviewing the risks associated with business ventures (divestments, acquisitions, mergers, joint ventures, etc.) operations
in foreign jurisdictions, new legislation/regulations, corporate financing/capital structure, and reputation.
Hazar Hosein
Courtenay B. Williams
Ian Narine
Audit Committees
The Financial Institutions within the First Citizens Group are each required by the Financial Institutions Act, 2008 to have an
Audit Committee. In keeping with this requirement, Audit Committees were established for the Bank as well as its subsidiaries.
The Audit Committee is the principal agent of the Board of Directors in overseeing the:
1. Quality and integrity of the Group’s financial statements
2. Independence, qualifications, engagement and performance of the external auditors
3. Review of the performance of the Group’s internal auditors
4. Integrity and adequacy of internal controls and the quality and adequacy of disclosures to shareholders
5. Scope and results of audits performed by the external auditor and the Group Internal Audit Department, as well as reports
of the Inspector of Banks
The Committee’s responsibility is supervisory and it therefore recognises that the Group’s management will have more knowledge
and more detailed information about the Group than the members of the Committee. It also takes responsibility for the Group’s
financial reporting and financial statements prior to the involvement of the auditors. Consequently, in carrying out supervisory
responsibilities, the Committee is not providing any expert or special assurance as to the Group’s financial statements or any
professional certification as to the external auditor’s work.
The role and responsibilities of the Audit Committees of the Boards of the First Citizens Group are:
EXTERNAL AUDITOR
•
•
•
•
•
The supervision of the relationship with the external auditor, including recommending the firm to be engaged as the
external auditor, evaluating the auditor’s performance and the determination of the selection criteria for the appointment
of the external auditor
Critical accounting judgments and estimates – Reviewing and discussing with management and the external auditor the
corporation’s critical accounting policies and the quality of accounting judgments and estimates made by management
Internal controls – Becoming familiar with and understanding the Group’s system of internal controls and, on a periodic
basis, reviewing with both internal and external auditors the adequacy of this system
Compliance – Reviewing the organisation’s procedures in addressing compliance with the law and important corporate
policies, including the company’s Code of Conduct
Financial statements – Reviewing and discussing the Group’s annual financial statements with management and the
external auditor and recommending that the Board approve these statements
INTERNAL AUDIT FUNCTION
•
•
•
•
Overseeing the Group’s internal audit function, including reviewing reports submitted by the Chief Internal Auditor
Authorising the Internal Auditor to carry out special investigations into any area of the organisation’s operations which
may be of interest and concern to the Committee
Ensuring that the Group’s Internal Audit Department is aware of the live issues of the Group (including major areas of
change and new ventures) and that these are incorporated into its work plans
Ensuring internal audit has full, free and unrestricted access to all the company’s activities, records, property and personnel
necessary to fulfil its agreed objective
COMMUNICATION
•
Providing a channel of communication to the Board for the external and internal auditors
COMPOSITION
•
Each committee should have at least three members, of which the majority should be independent directors
THE MEMBERS OF THE GROUP AUDIT COMMITTEES ARE:
BANK
Hazar Hosein
Ryan Proudfoot
ASSET MANAGEMENT
Narinejit Pariag – Chairman
Feona Lue Ping Wa – Deputy Chairperson
Susan Romano-Davis
FIRST CITIZENS INVESTMENT SERVICES
Franka Costelloe
Ian Narine – Appointed February 24th 2015
Karen Darbasie – Appointed May 26th 2015
FIRST CITIZENS BANK (BARBADOS) LIMITED
Renee Kowlessar – Chairperson
Peter Williams
Sir Trevor Carmichael
TRUSTEE SERVICES
Ian Narine – Chairman
Hazar Hosein
Franka Costelloe
FEES
The fees for audit services paid to our auditors amounted to $5.6M inclusive of VAT. Fees incurred for non-audit work performed
by the auditors amounted to $189K.
Human Resources Committee
The Human Resources Committee of the Board consists of six members, of which the Group Chief Executive Officer, the Group
Corporate Secretary and the General Manager - Human Resources are ex officio members.
The Board selects the chair of the Human Resources Committee, and he/she serves in the capacity for a period. The role of the
Committee is to:
1. Approve and monitor the implementation of the Human Resources Strategic Plan in support of the Company’s Business
Plan.
2. Provide guidance for the development of key Human Resources Policies, and to review and approve as necessary.
3. Consider and make recommendations to the Board as appropriate with reference to:
Recruitment, Selection and Succession Planning
• Policies on the recruitment, retention and succession planning for employees within the Group
• Grievances, disputes and matters arising between the Bank and the employees and the representative Union
Terms and Conditions of Employment
• The compensation philosophy to be adopted by the Group
• The determination of the details of the remuneration packages for all members of the management team including
the Executive
• The review of the proposals for any new Collective Agreement for the Bargaining Unit staff
Learning and Growth
• The policies relating to training and development of staff and to review and assess the adequacy of such training
Occupational Health and Safety
• The policies relating to Occupational Health and Safety that ensure compliance with the OSH Act
Culture and Core Values
• The policies relating to the core values, beliefs and behaviours to be promoted throughout the Group, and to review
the programmes in support of employee morale and satisfaction
Organisational Structure
• The policies relating to the Group’s operating model and its organisation design principles
THE BOARD MEMBERS OF THE HR COMMITTEE ARE:
Franka Costelloe – Chairperson
Hazar Hosein
Credit Committee
The role of the Credit Committee is:
1. To approve credit facilities as documented under the Group’s Credit Policy and Lending Authority Limits as well as review
and recommend any credit facilities requiring full Board approval
2. To review the quality of the loan portfolio and strategies being implemented to manage the Group’s exposure to Credit
Risk
3. To review the Group’s Credit Policies and recommend changes to ensure adequacy of scope and coverage as well as
appropriate rigor and continuing relevance to the changes in the environment
Joel Pemberton
Ian Narine

Annual Report - First Citizens

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