After a US$43.04 million loss last year at the end of its third quarter, CIBC FirstCaribbean is clawing its way back in a COVID-19 impacted environment, with a US$90.58 million after tax group profit, for the comparable period in 2021.
Reporting on the nine months ending July 31, the Barbados-headquartered regional bank’s consolidated financial statement showed total revenue was down from US$436.84 million in 2020 to US$409.71 million.
At the same time, the financial statements also highlighted the bank was able to cut operating expenditure for the review period from US$302.31 million last year, to US$297.63 million so far this year.
At the same time, credit losses were US$15.09 million, compared to US$126.96 million for the similar period
In the Chief Executive Officer’s Review which accompanied the financials, CEO Colette Delaney said for the third quarter of this fiscal period, the bank produced net income of US$37.1 million, up US$21.9 million or 144 percent over the prior year’s third quarter net income of US$15.2 million, mainly due to lower provisions for credit losses.
“Despite the year over year improvement, our results to date continue to be impacted by narrower margins as a result of the persistent low interest rate environment. The pace of the economic recovery in the region continues to be negatively impacted by the COVID-19 pandemic and its more contagious variants.
“While restrictions imposed by governments to limit the impact of the infection have started to ease in some jurisdictions, disruption in international travel and global supply chains continue to impact the region.
“The roll-out of vaccines continues to be a targeted health measure for governments, however, vaccination rates have generally slowed,” she told CIBC FirstCaribbean’s shareholders.
Like other business leaders, Delaney called on the people of the region to increase the vaccination rate.
“Timely completion of vaccination programmes will play a key role in controlling the virus and promoting a sustainable economic recovery.
“Even though the virus remains a threat and the pace of economic recovery somewhat uncertain, our Bank remains well-positioned to deliver on its strategic objectives, focusing on delivering a top-class client experience, digital transformation and improving operational efficiency,” she added.
In her statement, Delaney added: “The Bank’s Tier 1 and Total Capital ratios remain strong and in excess of applicable regulatory requirements at 13.0 per cent and 15.1 per cent.”
The bank is expected to pay a dividend of US$0.01 for the quarter and it will be paid next month. (IMC1)