Growth continues for CIBC FirstCaribbean

The fortunes of the Barbados-headquartered CIBC FirstCaribbean International Bank continue to grow with each quarter of the current financial year.

For the third quarter of its nine-month reporting period, the regional financial institution registered net income of US$39.8 million (BDS $79.6 million).

According to outgoing chief executive officer (CEO) Colette Delaney, this was up seven per cent from the corresponding quarter of 2021 when the bank reported US$37.1 million (BDS $74.2 million).

In the condensed consolidated financial statements for the period ending July 31, CIBC FirstCaribbean said adjusted net income was US$41 million (BDS$82 million) after it excluded operating expenses of US$1.6 million (BDS$3.2 million) related to its divestitures from several Eastern Caribbean countries where it sold its banking interests.

In this connection, the bank revealed the sale of bank assets in two jurisdictions has been approved by regulators, while discussions are ongoing in another jurisdiction.

Delaney disclosed that the Dominica sale had hit a brick wall and the bank’s board of directors decided to shut down the operations on that island.

Meanwhile, when the three quarters were considered, the bank ended with US$124.9 million (BDS $249.8 million) in reported net income. This was up US$433.6 million (BDS $867.2 million) from the same period last year of US$99.9 million (BDS$199.8 million).

According to Delaney, who is retiring and will be replaced by Barbadian executive banker Mark Hill as the new group CEO, the financial results to date “continue to reflect a strong performance due to incremental revenue from rising US interest rates, higher activity-based fees, and lower provision for credit losses”.

She added: “Despite some economic recovery in the region over the last quarter, the outlook remains uncertain considering the continued supply chain disruption, the war in Ukraine, and macro-economic challenges in key global source markets.”

In an update to stakeholders on the divestment process from several Eastern Caribbean jurisdictions, CIBC FirstCaribbean CEO said following the July 15 announcement of the proposed sale of banking assets in St Vincent and St Kitts, regulatory approval had been received.

She said the divestments would “simplify” the bank’s business.

Delaney added that the process of transferring clients to the Bank of St Vincent and Grenadines, as well as to the St Kitts-Nevis-Anguilla National Bank Limited in St Kitts, had commenced and should take several months to guarantee a smooth transition.

“We continue to discuss and negotiate key aspects of the transaction in the proposed sale of banking assets in Grenada,” the CEO revealed.

“The previously announced transaction in Dominica will not be proceeding. On September 1, 2022, the directors approved the closure of the Dominica branch, subject to regulatory approval.”

Delaney said the bank will continue its strategic priorities including expanding its digital platform and deepening its relationship with clients and employees. (IMC1)