CIBC Caribbean, which operates in Barbados and several other regional markets, is reporting a US$277.5 million profit in 2024 as part of what chief executive officer Mark St Hill call a record financial performance.
As St Hill detailed the increased income in the bank’s annual report for the financial year ended October 31, he shared that there was a major increase in digital transactions as less business is done in-branch.
“For the year ended October 31, 2024, the bank reported net income of US$277.5 million, up US$7.6 million or three per cent from prior year’s reported net income of US$269.9 million,” St Hill said.
“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 million at the end of 2023.”
The CEO said that 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, 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,” he reported.
“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.”
With CIBC Caribbean rebranded from CIBC First Caribbean International Bank during the year, St Hill said that “although we now operate across a smaller geographical footprint, we are a bigger bank with the largest loan portfolio and highest number of customers in our history”.
Going forward, he anticipates economic challenges in the region and elsewhere to continue.
“Economic growth in the Caribbean advanced at a moderate pace in 2024, as output in most markets already completed their recovery cycles following the COVID-19 pandemic,” the senior banker said.
“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.”
St Hill also said that the bank continued “to make enhancements to our internet and mobile banking platforms”.
The annual report said that CIBC Caribbean’s overall digital banking transaction volumes have grown 16 per cent year-over-year (YOY) to 33 million and that branch over-the-counter (OTC) transaction volumes have decreased by 20 per cent YOY.
“Digital Banking transaction volumes now represent 94 per cent of all transactions done by clients with OTC manual transaction representing six per cent of all transactions,” the report stated.
“We successfully delivered 8 551 loans and 1 732 cards to our clients via the digital channels, representing a 35 per cent YOY increase in loans and 129 per cent YOY increase in card sales, with over 16 000 clients served in an average time to decisions remaining below five minutes.” (SC)
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