Profit: $251 million

CIBC FirstCaribbean International Bank is describing its year-end performance as “resilient” as it confronted a tough environment impacted by the COVID-19 pandemic.

The bank, which is headquartered in Barbados, recently published its consolidated financial highlights for the year ended October 31. Managing director Colette Delaney said the performance was commendable in “fiscal 2021 against a backdrop of continuing challenges from the COVID-19 pandemic and uncertain economic conditions across the region”.

FirstCaribbean, which recently announced it was selling its operations in some Caribbean territories pending regulatory approval, told shareholders the bank continued to be “well-positioned to deliver on [its] strategic objectives, staying focused on the client experience, digital transformation and improving operational efficiency”.

Stating that the bank would make “meaningful investments” in its systems and people, she announced that for the just-ended financial year, the commercial bank reported a group net profit of US$125.7 million (BDS$251.4 million).

This position was a dramatic turnaround of US$284.4 million (BDS$568.8 million) from the 2020 year-end when the bank reported a net loss of US$158.7 million (BDS$317.4 million)

In her CEO’s Review, which accompanied the financial statements, Delaney said the results for the year were affected by a restructuring charge of US$10.1 million, provisions related to the announced divestitures of US$5.3 million, offset by an income tax credit of US$0.7 million.

She noted further: “The bank’s Tier 1 and Total Capital ratios remain strong at 13.0 per cent and 15.5 per cent and remain in excess of applicable regulatory requirements.”

In addition, CIBC FirstCaribbean, which trades on the Barbados Stock Exchange, announced the board of directors had approved a regular quarterly dividend of US$0.01 per share. That payment is expected on January 25, 2022.

Regarding its planned sale of banking assets in the OECS territories of St Vincent and the Grenadines, Grenada, St Kitts and Dominica, as well as Aruba, the bank said the sales were still awaiting regulatory approval and other “closing conditions”.

Delaney said the bank was pleased it had found partners that were “an excellent fit” in the respective markets.

The bank received a clean audit report from its auditor Ernst & Young. (IMC1)