Capitalization, Strict Governance, Modest Risk Lending, Revised Market Focus To Mark Path to Turnaround

After three years of challenges, Bank of The Bahamas said today a transformation that has been underway since January is netting positive results in asset recovery, credit risk procedures and strategic plans, including improved capitalization. The news came in a statement from Managing Director Wayde Christie who projected that the BOB that will emerge following the transformation and restructuring will be “leaner, faster, better” in every way from shareholder value to customer and employee satisfaction.

“We have been and continue to examine and assess the policies and procedures of this bank from one end of the spectrum to the other,” said BOB Managing Director Wayde Christie. “We are leaving no stone unturned.”

The assessment, he said, is forming the basis of an active transformation that includes a reduced appetite for risk and an increased focus on enhancing customer service.

“We can no longer be all things to all people,” Mr. Christie said. “For more than two decades Bank of The Bahamas was the bank that Bahamian business turned to. We can take pride in having backed a number of businesses that now play an important role in our economy but in order for BOB to achieve financial stability and sustainability, we must look at ourselves differently in the future as a bank that will be around for a very long time, financially sound and successful.”

Along with streamlining its market focus, BOB said it will shore up capitalization to boost liquid reserves, enact strict new corporate governance policies and procedures that include a fresh model for credit risk and a new strategic approach to markets it serves, including its expanding role in assisting with government business and payment and benefits processing.

A transformation team is working across every department of the bank, Mr. Christie noted. Collections have been stepped up with some $3.5 million in recovered assets in hand or under contract. Other loans are being renegotiated. Loan losses from non-performing loans continue to trend down. Training and processes refinement are both underway in a move to create speedier customer service and a better customer experience.

“Everything we do is aimed at being leaner, faster, better with long-term value and sustainability,” said Mr. Christie. “This means we need to alleviate liquidity concerns and continue to offload illiquid assets, increase government and private deposits. That will involve some restructuring and that could include some natural attrition. There will be emphasis on ownership, accountability and profitability. We will continue to bolster our capital position by accelerating the resolution of impaired assets, embarking on a safe growth path and enhancing our organizational health. Ultimately, we will return to our core vision to be the best and most respected Bahamian financial enterprise.”

“Our ability to consistently provide an exemplary level of service to our internal and external customers is also a strong area of focus and commitment. Going forward, these themes will underpin our activities as we build and maintain winning relationships.

“We have never wavered from our commitment to the communities we serve,” said Mr. Christie. “As we lay the framework for the Bahamian Bank of Solutions, we will be laser-focused on improving our financial performance and rigorously holding ourselves accountable for delivering results as quickly as possible. Our goal is to provide the best in service while achieving satisfactory shareholder returns, with higher stability levels and greater minority shareholder participation.”