BRIDGETOWN, Barbados--CIBC FirstCaribbean recorded its highest quarterly net income since the second quarter of fiscal 2010, the bank said in a statement announcing its results for the third quarter of 2015.

 

The bank said it continued to deliver "solid results" against its strategic objectives of accelerating profitable revenue growth and improving operational efficiency by recording net income of $34.8 million in the third quarter, up $11.4 million or 49 per cent over the prior year's third quarter net income of $23.4 million.

 

For the nine month period ending July 31, the net income was $87.0 million, up $31.9 million or 58 per cent over the prior year's adjusted net income of $55.1 million for the same period.

 

Total revenue during the third quarter of fiscal 2015 increased by $7.1 million compared to the second quarter of fiscal 2015. Total revenue over the nine month period was down $7.9 million year over year primarily due to lower interest earnings from loans and securities. Some countries continue to experience low credit demand, additionally interest margins on loans and securities yields were lower.

 

While productive loans balances are down slightly over the prior year, an improved performance over the second quarter of 2015 was recorded with $80.6 million in loan growth as a larger proportion of the sales pipeline was converted into productive loans during the latter half of this quarter, the bank said in a statement. Operating expenses over the nine month period were down by $3.0 million compared with the same period last year as they "continue to benefit from expense control initiatives and savings from the bank's restructuring programme."

 

Loan loss impairment expense was significantly lower by $43.1 million compared with the prior period's adjusted expense of $77.9 million due to an improvement in the loss experience and recovery activity, the bank said. Additionally, non-productive loan balances were down 18 per cent to $651 million compared with the same period last year as efforts continue to further strengthen the quality of the loan portfolio.

 

CIBC FirstCaribbean said it continues to make a number of investments across the region pursuing its growth objectives while also demonstrating its continuing commitment to the Caribbean.

 

The Bank just recently announced that the Rendezvous Branch in Barbados will be converted into a first-class sales centre catering to Platinum Banking, Business Banking and Corporate and International Banking customers. It has also opened new branches across the region, most notably the Santa Cruz mini-branch in Jamaica. Another branch at Fairview in the Montego Bay area is under construction. Additionally, the Bank recently opened a Representative Office in Aruba and has plans to open a full service branch in 2016, as part of its expansion plan for the Dutch Caribbean.

 

"The Bank's focus is on improving customer experience in generating results across our three main business segments," the bank said in the release.

 

The bank's switch campaigns targeting mortgages and credit cards, low interest rate offers, 100 per cent auto loan campaigns, Loan Saturdays, and Talk to me Tuesdays are a few examples of new initiatives designed to enhance the bank's value proposition for customers. In addition, there has been progress on making our lending decision goal of the 48 hour turnaround a reality, specifically in terms of auto loans in Barbados, Cayman, and Jamaica.

 

"CIBC FirstCaribbean is particularly proud of its activities as the leading infrastructure financier among the commercial banks in the Caribbean. These projects are an important element in the enhancement of productivity, competitiveness and growth throughout the Caribbean region. The new cruise pier and terminal in BVI and power projects with utilities in Cayman and Jamaica are some notable examples of the bank's infrastructure finance work," the release noted.

 

The Bank's Tier 1 and Total Capital ratios remain strong at 21.5 per cent and 22.8 per cent, well in excess of applicable regulatory requirements.

 

Source: Barbados Today