Business
CIBC FirstCaribbean Reports 70% Surge in Net Income for First Half of the Year
CIBC FirstCaribbean International Bank reports a 70% increase in net income for the first half of the year, driven by higher interest rates, loan growth, and improved economic conditions in the region. The bank has also concluded the sale of banking assets in St Vincent and the Grenadines and plans to assess strategic options for growth in the St Kitts-Nevis-Anguilla market.
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Originally published by barbadostoday.bb (opens in new tab)
After trimming its operations by disposing of a significant portion of its banking assets in some Eastern Caribbean jurisdictions, CIBC FirstCaribbean International Bank is reporting a staggering 70 per cent jump in the group’s bottom line for the first half of the year.
In FirstCaribbean’s six-month consolidated financial statements for the period ending April 30, chief executive officer (CEO) Mark St Hill said the Barbados-headquartered bank reported second-quarter net income of US$76.5 million, which represented a US$36.6 million or a 92 per cent climb.
“After excluding US$6.5 million of the net gains relating to the previously announced divestitures, adjusted net income was US$70.0 million,” he announced.
When the CEO examined the entire half year, the Bank’s net income totalled US$144.6 million, representing a US$59.5 million increase or a 70 per cent climb over the previous half-year period in 2022 when net income reached US$85.1 million.
According to St Hill: “Our financial performance continues to be positively impacted by higher US benchmark interest rates, loan growth and an improved economic landscape across our regional operating footprint.”
The FirstCaribbean International Bank CEO outlined to stakeholders that investments in key strategic initiatives, along with higher employee-related costs led to higher operating expenses.
“Our credit quality remains strong, as we experienced a lower level of provision reversal compared with the prior year arising from assumption updates.
“Despite the headwinds facing the region’s major trading partners, economic projections indicate that the recovery in the Caribbean, led by tourism, will likely progress in 2023 and 2024, with most markets anticipated to reach pre-crisis levels of economic activity this year,” the banker told stakeholders.
St Hill also provided an update on the bank’s programme of divestment of some of its assets in the region. He disclosed that the sale of banking assets in St Vincent and the Grenadines was concluded on March 24, 2023. On the other hand, he revealed the planned sale of the St Kitts-Nevis-Anguilla banking assets will not be proceeding.
“The bank will assess its operations and strategic options to reposition the bank for growth in that market,” he added, noting that regulatory approval was received for the sale of assets in Grenada which should be completed shortly.
