First Global Bank, a subsidiary of Grace Kennedy came storming back, posting impressive financial results for the year 2010. The preceeding year proved to be an annus horibblis for the bank with an incident that saw around US$20 million going missing through tradng irregularities and fresh capital having to be injected. Also senior managers had to be replaced as the bank sought to repair its image and regain the trust and confidence of its customers and the wider public.

First Global has recovered well and is now on a growth path. The launch of its Global Access has worked very well for the bank.It is now set on extending its branch network and has targeted downtown Kingston. First Global Bank seems to compete most effectively with its substantially more capitalised and diversified competitors on customer service, banking hours, and credit card rates. Some of its innovations are undoubtedly paying off.

For the year ended 31 December 2010, First Global Bank posted a net profit of J$479. 4 million. This compares most favourably with the loss of J$243.4 million posted for the year ended 31st December 2009. Interest income fell significantly to J$2.55 billion largely due to the fall in securities ( from J$1.7 billion in 2009 to J$1.1 billion for 2010). In the prior year the bank registered interest income of J$3.22 billion. Net interest income bolstered by gains on foreign exchange translation and trading came to an impressive J$1.95 billion, a notabley jump on the J$926.5 posted in the previous year. First Global has successfully managed to stem the losses on the sale and trading of securities.

First Global Bank’s new boss Maureen Hayden Cater has managed to put a lid on escalating administrative expenses, the bane of all banks. Staff costs basically remained the same as 2009. Total administration and other expenses came to J$1.41 billion the same as last year. This is a testament to the bank’s management capabilities particularly in light of the difficulties it experienced last year. Total comprehensive income lept to J$821.7 million for the year ended December 2010, coming from a loss of J$20.2 million for the prior year. This statement line benefited in the main from fair value gain on available-for-sale investments.

Total assets fell ever so marginally to J$28.3 billion compared to the J$28.8 billion posted for year ended 2009.

Don Wehby, who will become GraceKennedy’s CEO in June this year has always said that the true measurement of any business is how much cash does it have. His aphorism that “Profit is an opinion and cash is a fact,” rings true in First Global Bank’s case. Cash and cash eqivalents at the end of year moved to J$864.5 million. For the preceeding year this figure was J$636.3 million. The cash at the bank now comes to J$2 billion. It’s customer deposit portfolio has increased from 11,195 for the year ended December 2009 to 12,121 for the year under review. The value of the deposits come to J$15.2 billion, an increase on the J$14.8 billion posted for 2009.

Speaking with Caribbean Business Report yesterday, Don Wehby said: ” Provisions for loan losses actually reflected a net write back of J$56 million versus a loss of J$202 million in 2009. This was achieved by a closer working relationship with our customers to improve delinquency management. We have demonstrated excellent cost control which is reflected in our operating expenses which increased by only 0.2 per cent in a double digit inflationary environment. Net interest income increased in spite of JDX.

“We launched Global Access, Jamaica ‘s most powerful internet banking platform. Our customers have expressed delight with the service and uptake is ahead of our target. Currently it is the only platform in Jamaica that allows customers to initiate international wires and domestic transfers to any bank. This has added significant cash management value to our customers businesses and convenience to our retail clients. We are positioning First Global Bank as the leading technlogy driven bank in Jamaica.

“As a totally Jamaican bank we are working aggressively to build our loan portfolio through financing projects in the productive sector.”