CIBC Caribbean Bank Limited yesterday reported reported net income of US$277.5 million for its financial year ended October 31, 2024, which is an increase of US$7.6 million or 3 per cent from prior year’s net income of US$269.9 million. net income an increase income for the financial year ended October 31, 2024.
The regional bank, which is headquartered in Barbados, said its adjusted net income was US$285.2 million, after excluding net expenses of US$7.7 million related to the
previously announced divestitures, compared with adjusted net income of US$267.0 million at the end of 2023.
CIBC Caribbean's CEO Mark St. Hill said, "Overall, this year’s record financial performance has been positively impacted by solid performing loan growth, higher US interest margins and a favourable provision for credit losses. Revenue performed well year-over-year as loan originations increased, and we benefited from a sustained uplift in other income."
However St Hill said the bank could be impacted by external factors.
He said, "US interest rates are anticipated to fall in 2025 and may impact our revenue momentum; but could also promote increased credit demand in the market. We experienced higher operating expenses due to higher employee-related costs, spend on strategic investments, activity-based costs and other costs associated with protecting the bank in a highly regulated environment. The provision for credit losses was significantly down from the prior year mainly due to a non-recurring account recovery in The Bahamas. Our credit quality remains strong."
St Hill also noted that economic growth advanced at a moderate pace in 2024 "as output in most markets already completed their recovery cycles following the COVID-19 pandemic. Tourism remains the primary engine of expansion, while robust construction activity also continues to buttress growth. Additionally, regional inflation continues to soften. The regional outlook remains stable, but potential threats to the global economy like commodity price shocks and/or slower global growth could negatively impact prospects. "
CIBC Caribbean's directors approved a quarterly dividend of $0.0125 per share, bringing the total dividend to $0.05 per share for the year.
St Hill said this demonstrates the bank’s strong financial position and commitment to shareholder return. The dividend will be paid on January 17, 2025, to shareholders of record on December 27, 2024.
The bank’s Tier 1 and total capital ratios remain strong at 17.8. per cent and 20.0 per cent, respectively, in excess of applicable regulatory requirements.
