CIBC Caribbean, previously known as FirstCaribbean International Bank, recorded net income of US$217.73 million for the nine months ended July 31, 2024, which was an increase of 0.40 per cent compared to the regional bank’s net income of US$216.86 million for the same period in 2023.
In a review of CIBC Caribbean’s results for the period, the bank’s CEO Mark St Hill, said, “After excluding US$6.1 million of net expenses (2023-US$10.5 million of net gains) relating to previously announced divestitures, adjusted net income was US$223.8 million, up US$17.5 million or 8 per cent from prior year’s adjusted net income of US$206.3 million.”
St Hill said the bank’s financial performance to date has been positively impacted by increased revenue mainly due to higher net interest margin in our US dollar loan portfolio and volume growth. With the bank’s focus on client relationships, strong loan origination in corporate banking and personal and business banking during the quarter propelled the loan portfolio to its highest balance in history.
“However, headwinds from US benchmark rate reductions may impact our revenue momentum,”according to St Hill.
He also said the provision for credit losses was higher for the quarter mainly due to an increase in provision in the impaired loan portfolio, but the year-to date provision for credit losses is significantly down from the prior year mainly due to an earlier non-recurring account recovery in The Bahamas.
“Overall the credit quality remains strong,” according to the bank CEO.
CIBC Caribbean’s directors approved a quarterly dividend of US$0.0125 per share to be paid on October 18, 2024.