First Citizens Bank

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First Citizens Bank A Success Story
Presented by Sharon L Christopher Deputy Chief
Executive Officer, First Citizens Bank Ltd At
CAIB 34th Annual Conference Guyana November
13th, 2007
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Trinidad Co-operative Bank (The Penny Bank)

• The Countrys first indigenous bank (locally
  grown, locally funded and locally owned)
• Incorporated in 1914 as a savings institution
  to inculcate in the people the virtue of
  thriftand to provide a quick, easy, safe means
  for children and poor people to save small sums
  and put by for the coming of a rainy day
• At that time the other Banks were exclusively
  the bank of upper classes and the large sugar
  companies

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The Penny Bank (contd)

• Pioneered the provision of low cost housing in
  Trinidad
• 1976 Bank obtained a license under the Banking
  Act, to operate as a commercial bank

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The National Commercial Bank (NCB)

• Unveiled on July 01, 1970, 4 months after the
  Black Power uprising exploded in Port-of-Spain.
• Prime Minister Williams mandated the bank to
  grow to fly the flag of nationalism it is our
  aim, our duty to convert this into a vibrant
  financial giant geared to the development needs
  of the country, of the existing business
  community, of the prospective investor,
  industrialist, farmer or trader. Here is your
  opportunity. Seize it with both hands

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National Commercial Bank (contd)
Philip Rochford

• When the National Commercial Bank was
  established, there was no history of local
  persons owning, controlling and managing
  significant local resources. I accepted the
  challenge to establish the Bank and prove that
  persons born, bred and educated in Trinidad and
  Tobago were capable of managing their own affairs
  successfully.

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National Commercial Bank (contd)
A series of firsts

• The promotion of the concept of relationship
  banking. Rochford the conservative banking of
  yesterday had to be replaced by the aggressive
  banker of today
• Rochford introduced a policy that anyone working
  in the bank from a clerk upwards had to have a
  minimum of 5 OLevels including Mathematics and
  English. The old mode of hiring on the basis of
  class and colour had to be replaced by a
  meritocracy
• Rochford introduced a policy of taking into
  account a wifes earnings when assessing the
  qualifying income of mortgage applicants

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National Commercial Bank (contd)
A series of firsts contd

• First bank to offer life insurance on loans
• First bank to introduce equal pay for work of
  equal value
• Introduced the Platform System
• Introduced the first local VISA Gold Credit Card

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Rochford 1991 (21st Anniversary of the Bank)

• The Bank has unquestionably been a pioneer in
  promoting self determination in our people.
  However, bad habits and old perceptions die hard.
  Too many people still believe that national is
  synonymous with being substandard. Unfortunately,
  some of our own staff members have been
  influenced by this perception. Some believe that
  only foreign and international things are good.

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Workers Bank of Trinidad and Tobago - 1970

• SWWTU proposed the establishment of some avenue
  for investing, because some of its members had
  received substantial severance payments
• Banks set up by the Act of Parliament had the
  main aim of assisting in the economic welfare of
  workers, trade unions and staff associations, by
  providing banking facilities especially designed
  to encourage thrift and the prudent utilization
  of savings.
• Bank not GOTT owned. Over 66 of shares held by
  trade unions.

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Workers Bank - Achievements

• Advanced electronic data processing unit
• 1979 Introduced the first ATM Mary Anne
• 1983 Varinstall Mortgages part of a
  deliberate strategy to help low and middle income
  families own their own homes
• Only financial institution to invest exclusively
  in local art

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Workers Bank (1989) Limited

• April 1989 Workers Bank of Trinidad and Tobago
  was closed by the Central Bank
• May 22 WB (1989) Ltd, a new company was opened
  for business. The new Company was to have been
  named First Citizens, however, the GOTT felt that
  the name Workers Bank still garnered goodwill
  from the public

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Workers Bank (1989) Limited - Achievements

• Technology
• 1995 Major achievement the purchase of the
  Profile system which remains the core of the
  Banks information systems
• Profile (modular and flexible) allows First
  Citizens to be First in Technology. Profile
  introduced to Trinidad and Tobago, the online,
  real time service

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First Citizens Bank Birth

• Established 1993
• Acquired assets and liabilities of NCB,TCB and
  Workers Bank
• As at September 30 1994
• 3.47 billion Assets
• 1,300 employees
• 557 Million in non-performing loans

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Consolidation 1993 to 1996

• Staff
• Premises
• Systems
• Policies and Procedures

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Vision
To become the most competitive financial group
in Trinidad and Tobago with a well established
international presence.
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Mission
Our aim is to build a highly profitable
financial services franchise renowned for
innovativeness, service excellence and sound
corporate governance. We shall achieve our aim by
focusing on continuous improvement of systems and
products, building a strong base of knowledge
workers and creating strategic partnerships in
key sectors that add value to our franchise.
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Organizational Transformation 1997 onwards

• Building the product portfolio MIDAS (now
  eFirst), Credit Cards (First International Credit
  Card), Debit / POS acquiring and Telebanking
  Services
• Deepening the Human Resource competence 360
  degree assessments

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First Citizens Achievements

• 1998
• Green Leaf Award from the EMA, for the Citizens
  in Action to Restore the Environment (C.A.R.E.)
  initiatives
• 2000
• The first Bank in the entire English-speaking
  Caribbean to launch an Internet Bank
• 2001
• Standard and Poors Investment Grade Rating
• Tyrone Samlalsingh Pinnacle Award from South
  Chamber of Industry Commerce for excellence in
  innovation in information, communications
  technology and e-commerce

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First Citizens Achievements

• 2002
• Upgrade in Standard and Poors investment grade
  rating outlook
• Awarded the Bank of the Year 2002 by Latin
  Finance
• 2003
• First in Soundness from The Banker Magazine
• For the second time - Tyrone Samlalsingh Pinnacle
  Award from South Chamber of Industry Commerce
  for excellence in innovation in information,
  communications technology and e-commerce
• Upgrade in Standard and Poors rating outlook

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First Citizens Achievements

• 2004
• First domestic financial institution to issue a
  US 100 Million Bond in the International Market
• Fourth (4th ) consecutive annual credit ratings
  upgrade by Standard Poors to BBB/stable
  highest rating among the local financial
  institutions from an international credit rating
  agency
• Issued the first SEC approved Energy Fund
• Became the third largest Bank in Trinidad
  Tobago, moving past Scotiabank

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First Citizens Achievements

• 2005
• First Citizens again raised US 100 Million Bond
  on the International Market.
• Moodys Investor Services Inc. upgraded the
  long-term senior unsecured debt issued by First
  Citizens (St.Lucia) to A2. The first time a debt
  issued by a local financial institution has been
  assigned an A rating by an international credit
  rating agency.
• Awarded Bank of the Year 2005 by the Banker
  Magazine, a subsidiary of the Financial Times

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First Citizens Achievements

• 2006
• For the third time - Tyrone Samlalsingh Pinnacle
  Award from South Chamber of Industry Commerce
  for Technology and E-Commerce
• Moodys Investor Services Inc.
• Upgraded the long-term senior unsecured debt
  issued by First Citizens (St.Lucia) to A1.

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Total Group Assets (in TT Billion dollars)
The First Citizens Groups asset base has
continued to grow at an average rate of 16 to
14.7B at August 2007.
Bn
Restated
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Profit Before Tax (in TT Millions of dollars)
The Group has shown a continuous growth in Profit
Before Tax over the last 14 years.
Mn
Profit Before Tax (in millions of dollars)
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Achievements 2006/2007

• Fourth consecutive year a dividend of 130.0M was
  paid. Total dividends paid now in excess of
  500M.
• Our Strategies for Service Excellence was
  launched under the theme first citizens serving
  First Citizens on March 2007.
• Received the highest accreditation from the
  International Institute of Internal Auditors

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Contd- Achievements 2006/2007

• Completed the successful conversion to Profile
  Version 6.2.
• Implemented a comprehensive range of initiatives
  to ensure compliance with OSHA requirements.
• Best performing Equity Mutual Fund (Immortelle)
  in 2006 Trinidad Business Guardian.

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Contd- Achievements 2006/2007

• First Citizens Safety Officer was awarded the
  Individual of the Year Award at the Inaugural
  OSH Awards by the TT Occupational Safety
  Health Authority
• 8. Standard and Poors Ratings Services upgraded
  First Citizens Bank counterparty credit and CD
  ratings from BBB/A-2 to BBB/A-2
• Ratings of the US 100 million bonds from First
  Citizens were also upgraded from BBB to BBB

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Total Gross Loans
The Group has shown consistent loan growth over
the last five-year period.
Estimated 2007
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Asset Quality Indicators
Loan Quality
PDL/ Total Loans
Non Performing Loans The Group continued to
maintain tight control over asset quality as non
performing loans continue to be less than 2 of
the loan portfolio projected to September 2007
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11.6
8.7
10

2.7
5
2.5
2.2
1.6
1.2
0.7
0.9
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
Years
Reserves to PDLs
PDLs to Gross Loans

• Source Company Financials.
• July 2007 annualized
• Year ended in March 2006.

(3) Project to September 2007 (4) Year ended
October 2006 (5) Year ended September 2006
(6) June 2007 annualized (7) Year ended March
2007 (8) April 2007 annualized
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Efficiency
The improvement in the profit position is also as
a result of the Group having an efficiency ratio
of 43 as at July 2007 and a projected ratio of
41 as at September 2007 (which is among the best
in the banking sector as a whole).

• Source Company Financials.
• Projected September 2007.
• (1) Budgeted September 2007
• (2) Quarter ended June 2007
• (3) Year ended in March 2007
• (4) Half year ended April 2007.

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The First Citizens Group Consists Of

• First Citizens Bank Limited
• First Citizens Asset Management Limited
• First Citizens (St. Lucia) Limited
• First Citizens Trustee Services Limited
• First Citizens Securities Trading Limited
• First Citizens Sports Foundation

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Highest Rated Indigenous Bank In the Region

• First Citizens BBB (Standard Poors)
• Baa1 (Moodys)
• RBL BBB (Standard Poors)
• BBB (Fitch)
• RBTT BBB - (Fitch)

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Thank you