CIBC Caribbean Bank Limited, which is now implementing a new country management model, is reporting “solid” net income of US$55.8 million for the first quarter of its 2025 financial year.
This is lower than the US$84.6 million in profit that the financial institution netted in the same period in 2024.
Chief executive officer Mark St Hill noted that CIBC Caribbean’s financial performance in the first quarter “was largely impacted by higher provision for credit losses”.
“We recorded a significant non-recurring account recovery in The Bahamas during the prior year’s quarter,” he said.
“Additionally, we experienced increased provisions in the impaired loan portfolio and the impact of model parameter updates, further widening the year over year performance related to provision for credit losses. Overall, our credit quality remains strong.”
St Hill also said that revenue “performed well year over year mainly driven by loan volume growth which offset the impact of lower interest margins due to declining US benchmark rates”.
However, the organisation “experienced higher operating expenses compared with the prior year’s quarter due to higher employee related costs, spend on strategic investments and other costs associated with protecting the bank”.
“Core business growth remained strong in the first quarter. Our loan portfolio grew by four per cent reflecting increased originations across key segments, while deposits rose by two per cent, highlighting continued client confidence and liquidity stability,” St Hill said.
“First quarter loan originations included the Government of Barbados sustainability-linked loan for which we arranged and funded a hold position of US$178 million.”
CIBC Caribbean has introduced a new country management model which St Hill explained “allows us to realign our talent and structure to our strategy after having successfully optimised our geographical footprint over the last few years from 18 countries to ten and from 72 to 45 branches”.
“This realignment prioritises, at the country level, business development, client-facing activities and people leadership. The senior leadership transition is underway, starting with the appointment of the new chief country management officer, Donna Wellington,” he said.
The CEO said the bank continued to “execute its client-focused strategy, underpinned by deepening client relationships, offering impactful advice and solutions, and leveraging our digital infrastructure to simplify service delivery”.
“These efforts, combined with continuing strategic investment in our technology and people, position us well to achieve sustainable growth,” he asserted.
“Economic activity in the Caribbean is projected to expand in 2025 supported by continued post-pandemic recovery and tourism expansion, while regional inflation is expected to remain modest.
“However, downside risks remain as spill-over effects from global trade and tariff policies could disrupt global supply chains, fuel higher inflation and dampen growth prospects in the region given our close ties to key source markets” said St Hill.
