CIBC FirstCaribbean International Bank says it has completed its programme to divest its banking assets in a number of Caribbean countries, with the final sale involving its Cayman subsidiary selling its assets in Curaçao and St. Maarten to Curaçao-based Orco Bank.
The most recent transactions are subject to regulatory approval from the Cayman Islands Monetary Authority, the Central Bank of Barbados, and the Central Bank of Curaçao and St. Maarten, and are expected to be finalised in the coming months, according to a press release announcing the planned sale.
The announcement comes two years after the sale of FirstCaribbean International Bank (Cayman) Limited’s assets in Aruba to Aruba Bank N.V. in 2021. At that time, FirstCaribbean International Bank Limited also announced the sale of its banking assets in St. Vincent, Grenada, Dominica and St. Kitts to four regional banks.
FirstCaribbean International Bank (Cayman) Limited is a wholly-owned subsidiary of First Caribbean International Bank.
In announcing that Orco and CIBC FirstCaribbean had reached agreement on the terms of the transaction, CIBC FirstCaribbean’s chief executive officer, Mark St. Hill, said that “these transactions are the final ones in our programme of country divestitures that began in 2021 with the sale of our assets in Aruba and some of our [Organisation of Eastern Caribbean States] territories”.
He added, “This programme began as part of our strategy to enable CIBC FirstCaribbean to optimize and simplify its business, further enhance efficiency and focus on core markets to accelerate growth. When these divestitures are completed, it will allow our bank to turn its full attention to growing our business, consolidating our position in our core markets and optimizing our strategy of providing a second-to-none omni-channel banking service to our clients.”
Orco Bank, which was established in 1986 in Curaçao, has branches in Curaçao, Bonaire, and St. Maarten. Originally focused on offshore activities, bond trading, and investment banking, it now also delivers banking products and services to individuals and businesses in the region.
St. Hill said, “A decision to leave a market is never an easy one but we are certain that we are leaving our clients with a competent team, led by Edward Pietersz and Desiree Alberto-Martina of Orco Bank, who will focus on delivering a personalized service and an enhanced customer experience to its customers, to ensure high compliance standards, and portfolio management, to conform with guidelines and regulations of the Central Bank of Curaçao and St. Maarten (CBCS).”
Commenting on the sale, Pietersz, managing director and CEO of Orco Bank, said, “Acquiring CIBC FirstCaribbean’s banking assets presents an excellent opportunity for Orco Bank. We are thrilled to welcome new customers and remain dedicated to delivering superior service to both our existing and new clientele.”
He added that both banks were working diligently to ensure a seamless transition for CIBC FirstCaribbean’s customers.
The release noted that the transactions were not expected to have a material impact on CIBC FirstCaribbean’s Tier I and Total Capital ratios.
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