Bank of The Bahamas shareholders got welcome news at the financial institution’s annual general meeting April 15, including a preview of the plans leading to a transformation, recovery and sustainability in 18-24 months and an historic change in the make-up of the board.

For the first time in the 28-year-old bank’s history, minority shareholders will be represented along with those appointed by the government which holds the majority of shares.

The positive news about a return to stability after three years of losses was delivered by BOB Chairman Richard C. Demeritte who said the bank’s rapid growth in the early 2000’s and its attempt to be “all things to all people” succeeded during the economic boom but backfired when the economy faltered in 2008, setting off a downward spiraling of ability to repay loans. The bank, he said had “learned its lesson” and, among its many changes in policies practices and procedures, would take a more conservative approach to lending going forward.

“Our vision for Bank of The Bahamas is to turn around our financial position and build the bank of the future,” Demeritte said. “We will transform the way we think about our customers; our people, services, and processes; and our financial performance. We will be an institution laser-focused on realizing appropriate shareholder returns with sustainable return on equity and limited credit risk,” said Demeritte.

The theme of a fundamental shift in risk appetite was reiterated during the meeting at the British Colonial Hilton along with news that nominations were being opened for two seats on the board of directors for minority shareholder representation. That move, long requested by shareholders, and supported by BOB, had to be approved at several levels, including by regulators. Nomination forms were available at the session and may be downloaded from www.bankbahamas.com.

The bank with branches on eight islands and with some 350 staff members has a client base of about 25,000 accounts and has been recognized for its innovative financial solutions. It recently announced an international currency transfer contract with Earthport, giving it a singular competitive position in the growing money transfer business.

But its financial performance which had skyrocketed in earlier years raised investor concern more recently and there was a palpable sense of relief as one measure after another was unveiled that would put the bank on a path to financial recovery and sustainability.

“We will be a provider of broad payment solutions and shared services for government and other public agencies,” said Demeritte, noting that temporary government employees, many previously unbanked, were now benefitting from having a bank account while BOB was earning modest revenue that showed promise of growth.

“We will also increase our commitment to retail and small- and medium-sized businesses through tighter risk controls and ongoing monitoring,” he said. “Our goal is to be a nimble, action-oriented organization; one that empowers its employees to deliver best-in-class customer service. It should be no question that the transformation will maintain our commitment to the Bahamian people and market while focusing on our sustainability as a leading financial institution.”

The chairman announced that a restructuring advisory committee would assist in the transformation process and said Central Bank would continue to serve in a monitoring role throughout the 18-24 month journey.

Leading the road to recovery is the newly appointed Managing Director (Acting) Renee Davis, who previously served as COO. It is at the senior executive and management level that the first changes as a result of restructuring were already visible and other role changes are expected with more attention at every level to ownership, accountability, performance and profitability. The bank has also stepped up non-performing loan restructuring or asset seizure with strong success to date.

“We will emerge a new Bank of the Bahamas. But this will not happen overnight. To all of you, shareholders who have remained loyal and committed, those of you who have had doubts and not hesitated to express those doubts publicly, the chairman has presented this picture of a bank that has played an integral role in the development of this nation and I say with all transparency and honesty and optimism, that the worst is behind us and we will come out of this chapter not only leaner, faster, better but smarter, more competitive and sustainable,” said Mrs. Davis. “We will be a transformed Bank of The Bahamas and we feel very optimistic given the opportunities before us.”

During the AGM, stakeholders were asked to vote in eight directors to the Board’s 2016 – 2017 term, including Mr. Richard Demeritte, Mr. Eric Gibson Jr., Bishop Roston Davis, Mrs. Donna Harding-Lee, Mr. Don Davis, Ms. Renae Mckay, Mr. Alexander Reckley, and Mr. Errol McKinney.