The performance of CIBC FirstCaribbean International Bank’s regional operations continues on an upward trajectory as the financial institution’s second-quarter results show a massive 76 per cent jump in net income.
In the recently released condensed consolidated financial statements for the quarter ending April 30, 2022, the Barbados-headquartered bank generated US$43 million (BDS$86 million) in net income from continuing operations.
Compared to the corresponding quarter in 2021, this year’s performance was a US$19.94 million (BDS$ 39.88 million) increase. The net income for the period stood at US$39.88 million, compared to the US$22.61 million for the corresponding quarter last year. At the same time, the bank generated total revenue during the quarter of US$137.71 million, while the bank’s operating expenses totalled US$91.93 million.
Colette Delaney, the bank’s group chief executive officer (CEO), in her commentary on the financials, said after adjusting for US$4 million of operating expenses related to its divestitures across the region which it announced in 2021, the net income was US$43.9 million.
“For the six-month period . . . reported net income was US$85.1 million. On an adjustment basis, net income was US$92.1 million, up US$29.2 million from the same period last year of US$62.9 million.
“The improved financial performance was primarily due to increased transaction based non-interest income, and the reversal of provisions for credit losses reflective of favourable changes in the regional economic outlook,” Delaney told stakeholders. The top bank executive said economic activity across the Caribbean continued to improve as COVID-19 restrictions are relaxed “providing further relief to the tourism sector and increasing consumer demand”.
At the same time, the FirstCaribbean International Bank official cautioned that the institution would continue to monitor the economic outlook in light of supply chain and inflationary pressures, including the impact of the war between Russia and Ukraine.
The bank announced that a shareholder dividend for the quarter of US$0.01 per share will be paid on July 8. Late last year, FirstCaribbean announced it was seeking to dispose of most of its banking operations in the Eastern Caribbean for about US$20.7 million (BDS$41.4 million).The regional bank agreed to “surrender its banking licence” in St Vincent, Grenada, Dominica, St Kitts & Nevis. It has also informed shareholders that FirstCaribbean International Bank’s Aruba business was also to be disposed of in a US$ 6.8 million (BDS$ 13.6 million) deal for the FCIB Cayman Islands subsidiary. (IMC1)