Friday, March 29, 2024

Profits despite challenges

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THE CARIBBEAN’S “uncertain economic environment” has not stopped CIBC FirstCaribbean International Bank from achieving “strong operating results”.

Chief executive officer (CEO) Gary Brown, commenting on the bank’s condensed consolidated financial statements for the six months ended April 30, reported its earning of a US$37.2 million profit in the second quarter of its current financial year. This was a US$2.9 million (eight per cent) increase compared to the same period last year.

On the other hand, FirstCaribbean’s profit for the two quarters detailed was US$70.9 million, “down $2.1 million or three per cent compared with the same period last year”, the CEO added.

In his review, Brown said: “Overall, the bank delivered another quarter of strong operating results and showed profitable growth despite an uncertain economic environment.”

In the six-month review period, “total revenue was US$264.6 million, down US$5.6 million or two per cent compared with the same period last year primarily due to lower interest margins and non-recurring securities and foreign exchange gains recorded last year”.

“Operating expenses of US$182.4 million were up US$2.3 million or one per cent compared with the same period in the prior year primarily as a result of higher business taxes and technology systems related expenditure. Loan loss impairment expense of US$6.9 million was down US$700 000 or nine per cent. An improved loss experience and solid loan recovery activity continue to drive lower loan losses,” he added.

He also said that “despite the continuing low credit demand and uneven investment activity across the region, the bank’s loan growth has been encouraging across both the retail and corporate and investment banking segments, registering a US$315 million or five per cent increase in productive loans over the second quarter of the prior year”.

“During the second quarter, the bank continued to make progress against its stated objectives of growing the business and enhancing the client experience. Our challenge continues to be the efficient allocation of capital in support of client initiatives in these subdued economic conditions,” Brown reported. (SC)

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