CIBC FIRSTCARIBBEAN INTERNATIONAL BANK Limited is reporting increased profits. In his review, which accompanied the bank’s consolidated financial statements for the six months ended April 30, 2016, chief executive officer (CEO) Gary Brown reported “continued . . . strong results”.
The $146 million earned in the six month period was $41.6 million (40 per cent) more when compared to the same period last year.
“Total revenue was [$540.4 million], up [$27 million] or five per cent compared with the same period last year primarily due to lower funding costs and higher non-interest income,” Brown said.
“The bank’s productive loan growth has been encouraging across both retail and wholesale banking segments, however, regional economies have been slow to recover as reflected by generally low credit demand and uneven investment activity.”
The CEO also said “sustained, profitable growth continues to be a key priority for the bank”. “Operating expenses of [$360.2 million] were up $15.6 million or five per cent compared with the same period in the prior year primarily as a result of higher business taxes and project related spend,” he added.
“We continue to benefit from discretionary expense control and ongoing savings from the restructuring programme initiated in 2014, but also continue to invest in our franchise through project related spend. Loan loss impairment expense was down significantly by [$39.6 million or 72 per cent compared with the same period in the prior year.”
Additionally, “an improved loss experience and enhanced loan recovery activity underline the lower loan losses”.
Brown said the bank’s non-productive loan balances continue to decline “as significant focus is placed on further strengthening the quality of our loan portfolio and is currently [$986 million] versus [$1.4 billion] a year ago”.
FirstCaribbean is embarking on some initiatives to “enhance and integrate the client experience by recently launching a new co-branded insurance offering with a leading regional insurer”.
“The arrangement will provide a differentiated level of service and insurance products to our clients across the region,” Brown said. (SC)