CIBC Caribbean delivers US$159.7 million profit

CIBC Caribbean Bank Limited says strong loan growth and steady core business helped it remain profitable in 2025, even after taking a major loss on a non-core investment.

The bank reported net income of US$159.7 million for the financial year ended October 31, down from US$277.5 million the year before. 

Chief executive officer, Mark St Hill said the lower result reflected higher credit costs, new tax rules, and a one-time investment loss.

He explained that the headline figure was affected by unusual items.

“Results for 2025 include a US$56.2 million fair value loss on a non-core investment, and a US$2.4 million net gain related to the previously announced divestitures,” St. Hill stated.

When those items were removed, St. Hill said the bank’s underlying performance was stronger. 

“Excluding these items of note, adjusted net income was US$213.5 million,” he said, when compared with US$285.2 million in 2024.

According to the CEO, higher costs weighed on earnings. 

“The decline in adjusted earnings was primarily due to higher provision for credit losses and increased income taxes following the adoption of the Global Minimum Tax Framework in the Bahamas,” St. Hill said.

Despite these challenges, the CIBC top executive said the bank continued to expand its lending business across the region. 

“Our client focused strategy across our regional footprint supported by a strong capital position, allowed us to build the largest performing loan book in our history.

“This resulted in the bank delivering a solid underlying core performance while we navigated select credit and operational pressures,” St Hill added.

Looking at the wider economy, St. Hill said growth continued but at a slower pace. 

“Caribbean economic activity continued to expand moderately in 2025, though momentum softened as tourism growth eased in several markets,” he said, while acknowledging that price pressures eased in many countries. 

“Inflation generally declined alongside lower commodity prices, while fiscal positions improved in some territories.”

However, St Hill said risks remain heading into the new year.

“Risks from shifting global trade policies, geopolitical tensions and weather-related disruptions persist,” he said, adding that “the regional outlook is broadly stable heading into 2026”.

On the revenue side, St Hill said loan growth helped offset lower interest rates. “While net interest income was negatively impacted by a lower US interest rate environment, this was largely offset by the earnings impact from strong loan portfolio expansion,” he said.

Operating expenses increased by six per cent, or US$26 million, due to “higher employee related costs” and continued spending on technology and strategic projects.

The bank also increased its provision for credit losses, mainly due to impaired securities and updated risk models, though St. Hill stressed that “our underlying credit quality remains strong”.

He said CIBC Caribbean remained well capitalised. “At fiscal year end, the tier one and total capital ratios stood at 18.3 per cent and 20.8 per cent,” he noted.

Reflecting that strength, the board approved a quarterly dividend of US$0.0125 per share, payable on January 15, 2026.

(IMC)