Sir Franklyn hails BOB’s ‘tremendous turnaround’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamians must “create real wealth” by investing in equity rather than debt securities, a well-known businessman urged yesterday, as he hailed Bank of The Bahamas’ “tremendous turnaround”.

Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business he hopes the bank’s revival from its combined $300m-plus bail-outs over the past 11 years will encourage more Bahamians to invest in the ordinary shares of BISX-listed enterprises rather than adopt the traditional more conservative approach of acquiring preference shares, bonds and other forms of debt.

Ordinary, or equity, shares give investors an ownership stake in the companies that issue them, and Sir Franklyn also voiced optimism that Bank of The Bahamas’ recovery will entice other firms to consider listing on the Bahamas International Securities Exchange (BISX) and, in so doing, broaden and deepen this nation’s capital markets.

The Arawak Homes chief told this newspaper that it is “very significant” that Bank of The Bahamas now enjoys more net equity, which measures a company’s value or worth, than its BISX-listed rival FINCO, the Royal Bank of Canada’s (RBC) mortgage lending arm.

And, further highlighting Bank of The Bahamas’ progress, he also pointed out that the increase in its BISX-listed share price over the past 12 months - from $3.90 at end-August 2024 to the present $5.30 - has significantly increased shareholder value for both the Government and 3,000 private Bahamian investors by adding millions to the bank’s market capitalisation.

“Bank of The Bahamas has more capital, more equity than [FINCO],” Sir Franklyn said. “I think that’s a very significant development in the local capital markets. The mere fact Bank of The Bahamas could be in that position, having been where it was not so long ago, is a tremendous tribute to those who have served in leadership roles at that bank and they are all Bahamians.

“That’s a tremendous turnaround that deserves the highest commendation from everybody in this country. I see that as very, very significant.” The net equity comparisons, though, are slightly more complex than that. Bank of The Bahamas’ total or net equity of $226.658m, as shown in its unaudited results for the year to end-June 2025, does exceed the $202.09m on FINCO’s balance sheet at end-April 2025.

However, Bank of The Bahamas’ figure is inflated, or boosted, by the $172.123m in “special retained earnings” that represent the value of the Government bond that was injected into its balance sheet in 2017 to ensure it remained solvent while the second tranche of commercial loans was transferred to Bahamas Resolve, the ‘bad bank’ that facilitated the bail-outs.

A direct comparison between the net equity figures for Bank of The Bahamas and FINCO is thus somewhat misleading. However, even if the $172.123m is subtracted from the former’s net equity, it still has a net worth of $54.535m, showing that Bank of The Bahamas continues to recover and now possesses more equity capital than its $69.292m worth of collective financial losses.

Meanwhile, turning to the increase in Bank of The Bahamas shareholder value, Sir Franklyn added: “Last August to now, the market capitalisation of Bank of The Bahamas has gone up by more than $100m. That is a tremendous amount of value created for a large number of Bahamian investors because that’s a publicly-traded bank. There are a lot of small Bahamian investors, not just the Government.”

Tribune Business calculations, based on the current and 12-month old share price, and the 42.959m ordinary shares issued and in investor hands, reveal a $60m increase in Bank of The Bahamas’ market capitalisation over the past 12 months. It has risen from $167.542m to end-August 2024 to $227.685m now - a jump of 35.9 percent.

The Bank of The Bahamas bail-out, which involved two transfers of delinquent loans worth a collective $267m to Bahamas Resolve, one in 2014 and the other in 2017, and a $30m rights issue that had to be fully subscribed for by its two government shareholders, represented a wealth transfer from taxpayers to the bank’s shareholders.

Bahamian taxpayers have now been stuck with the bank’s toxic loans due to Bahamas Resolve’s struggles to sell and dispose of the underlying real estate and other assets secured as collateral for this credit.

The Government’s 2025-2026 Budget estimates provide $4.506m to cover the interest payments due to Bank of The Bahamas on the Government bond sitting in its balance sheet, with this sum forecast to remain the same for the next two years. Taxpayers have had to step in to make these payments that were supposed to be financed by Bahamas Resolve’s asset sell-offs.

However, there can be little denying Bank of The Bahamas has progressed significantly from when its survival was called into question in 2014, with net income for the year to end-June increasing by 46 percent or more than $9m year-on-year from $19.661m to $28.72m.

“I’m hoping the success of Bank of The Bahamas can interest more Bahamians in investing in BISX-listed companies generally,” Sir Franklyn told Tribune Business. “One of the ways to move forward in this country is investors have to invest beyond preference shares.

“They have to invest in equities. That’s where real wealth is created and comes from; not buying preference shares. Wealth creation comes from buying ordinary shares. The success of Bank of The Bahamas, why I’m shouting about it, is because hopefully it will encourage more Bahamians to look at BISX-listed entities and not just preference shares but equities.

“And, as we have more of this, hopefully more Bahamian companies that merit reasonable consideration will look to list their equities on BISX. That’s why I see this as a very significant development. No single government can claim total credit for that turnaround and what happened at that bank. No single government can say look at what we did. All that makes this a very good story for the country.”

Comments

DWW says...

says the man with a no bid fuel contract for the entire Bahamas

Posted 3 September 2025, 1:44 p.m. Suggest removal

tetelestai says...

Who gives a shit about his contract, Strawman. His logic is sound. You must be a 5 year old stuck in a 3 year old body. Idiot.

Posted 3 September 2025, 3:37 p.m. Suggest removal

ExposedU2C says...

LOL. You must be on Snake's payroll.

Posted 3 September 2025, 4:38 p.m. Suggest removal

tetelestai says...

I never confused you with having intelligence. Thank you for continually proving me accurate.

Posted 4 September 2025, 3:06 p.m. Suggest removal

GodSpeed says...

Get "wealth" investing on BISX? 🤣😂🤣😂🤣😂
Now THAT is funny. Maybe if ordinary Bahamians were allowed to invest in the US stock market 25 years ago instead of gambling at web shops for almost 3 decades then you'd have a whole lot more Bahamian millionaires right now.....but BISX? You've gotta be kidding, it moves slower than a snail, you'll be dead or decrepit by the time you see any life changing returns, that's if the company you're investing in doesn't go belly up first. Not to mention if you can even tolerate the archaic process to buy and sell shares, or do they have an app for that now? Doubt it. The snake must be looking for someone to buy his holdings at a high price 🐍, hilarious.

Posted 3 September 2025, 7:46 p.m. Suggest removal

Porcupine says...

So, Bahamians must "create real wealth" even though only a handful of Bahamians are not living paycheck to paycheck. Interesting.
But, little to say about the waste fraud, and utter abuse of our national treasure by do-nothing obese politicians who are robbing this country blind?
Nothing to say about the ability of an average Bahamian to make a comfortable living by actually producing something of value at a reasonable wage?
Has BOB paid back ALL its losses? Yet, now it is profitable? Please!
Was BOB treated any differently than any other business in The Bahamas?
Answer: Yes. Usually when a Bahamian business goes bankrupt, they don't get bailed out.
What percentage of the Bahamian population owns stock?
What percentage of the Bahamian population owns stock?
So, the only way to "wealth" is by investing? Not, by working hard?
Have BOB line employees seen an increase in their salaries, commensurate with this new found BOB prosperity? Yes, or no?
Why cannot BOB pay their employees a really good wage, thus encouraging them to invest and to save?
What is the average salary of a BOB teller?
Have all the politicians who took out loans from BOB paid them back in their entirety?
How does a person who remains so aloof from average Bahamians get to have a say in the political process? Money, and money alone! For himself.
If we wanted more money circulating and stimulating the Bahamian economy, shouldn't those who spend the greatest portion of their money into the Bahamian economy be a priority?
Any first year economics student knows that the multiplier effect of giving a rich person a dollar is much lower than giving it to a poor person.
Meaning that while we have to import teachers, nurses and doctors, because we pay our own so frigging little that they flee this country, is OK.
But our first priority should be to encourage the rich to invest wisely? is this a sound national economic strategy?
If money is the only criteria to speak on important economic matters, perhaps we could
find a few others, some maybe in jail, for making lots of money. This is where we are as a country. We listen to people with money no matter if they are a decent person, or a web shop owner, or not.
How do you get the name Snake as a national moniker?

Posted 4 September 2025, 10:23 a.m. Suggest removal

DonAnthony says...

You raise a lot of interesting and very valid points. However, so many of these comments are an attack on the messenger (many of these aspersions concerning Mr. Wilson may be perfectly true) while neglecting to acknowledge that the essence of what Mr. Wilson says are also true. The Bank of the Bahamas turnaround has been tremendous and should be celebrated. They were too big to fail, received public preferential treatment but they made so far a resounding success of that opportunity. Also despite its drawbacks BISX is a wonderful opportunity for wealth creation for ordinary Bahamians. It is possible starting with very little to invest in BISX and generate over a period of time fantastic returns. I know of a person who started from nothing and through diligent, wise investing in BISX companies over a relatively short period of time was able to retire at a very young age. I know many people who work hard and are broke. Sadly working hard does not guarantee success. The secret is not to work harder but smarter, and a key to wealth creation in our Bahamas is to save and to smartly invest in wealth creation opportunities like equity shares available on BISX, just like Mr. Wilson said.

Posted 4 September 2025, 11 a.m. Suggest removal

tetelestai says...

Exactly, Don ANthony. Frankie's message, whatever you may think of him, is very sound.

Posted 4 September 2025, 3:08 p.m. Suggest removal

ExposedU2C says...

Taxpayers were forced by government to bail out Bank of The Bahamas (BoB) after all of the corrupt lending to government officials and their cronies that occurred while Paul McWeeney was its managing director.

And now the cunning and conniving Snake is sucking up to BoB and the other commercial banks for millions and millions of dollars of high risk loans to fund his 'theft' of our nation's entire energy sector without putting any of his own great personal wealth at risk.

The Royal Bank of Canada (RBC) learned its lesson the hard way when it funded Snake's dubious real estate development projects in South Eleuthera. RBC, then managed by Ross McDonald, quickly found itself forced by Snake to become a stakeholder rather than a lender in his development activities much to the dismay of RBC's executive suite in Toronto. RBC ended up bearing significant costs and losses that should have been entirely borne by the devious Snake.

Posted 5 September 2025, 6:48 p.m. Suggest removal

tetelestai says...

Red herring, Strawman. The context of his quote is clear: investing in securities has the potential to yield greater returns than debt. Which is a universally accepted standard. I swear, ya'll niggas dumb as rocks.

Posted 4 September 2025, 3:08 p.m. Suggest removal

ExposedU2C says...

Then why is Snake running around town begging the banks to fund his monopolistic acquisition of our nation's energy sector rather than creating a public company to raise the necessary funds? Could it be because most Bahamians are now either afraid or smart enough not to invest any of their hard earned money in the securities of any kind of public enterprise controlled by Snake and/or Tony Ferguson?

Posted 5 September 2025, 6:56 p.m. Suggest removal

Porcupine says...

No, not an attack on the messenger.
None of my concerns were addressed.
Were they?
Yes, if you know people have started broke and ended up rich is a statistical accident, if you are serious about numbers.
Quit defending a sordid, dog eat dog system.
The trend is a growing disparity between rich and poor. Here in The Bahamas and globally.
Is this fair? Is this Christian?
EVERY social indicator for a "good life" fails under rising inequality.
This IS the trend, and has been for quite some time.
Not because those at the top are working smarter, but because the system is rigged.
Every educated, honest person can understand this.
I follow the words of Martin Luther King Jr. when he said we need "a radical revolution of values".
We live in a country that cannot provide decent services of any kind to benefit Bahamians.
This country is crumbling under the weight of indebtedness.
This is simple math.
We do not take care of our own. Period.
But, in sure many of the richest Bahamians, no matter how they got their money, hustle into church every Saturday and Sunday, so that we can see that they are good Christians.

Posted 4 September 2025, 1:23 p.m. Suggest removal

pileit says...

so whatever happened to all those unsecured millions they loaned out to MPs and cronies alike… the “special purpose vehicle”, could only be looking at BoB separately from that… hundreds of millions of bad loans just forgotten? I know the potcake happy for sure.

Posted 4 September 2025, 2:20 p.m. Suggest removal

screwedbahamian says...

Keep writing of millions of dollars to past, current and future politicians delinquent and non-performing loans and then selling to corrupt Investors for pennies on the dollar, paying the Web shop Boys very little to no interest on huge daily deposits and balances that other banks cannot accept, even with a C average you should make a profit. Especially if the books maybe tweaked.

Posted 4 September 2025, 3:58 p.m. Suggest removal

Porcupine says...

We live in a world where character no longer matters.
So long as we invest wisely..................................
No reward for arguing with fools.

Posted 4 September 2025, 4:57 p.m. Suggest removal

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