The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A BISX-listed bank has reported a net income increase of 11 percent.

Jacqui Bend, CIBC Bahamas managing director, said the bank reported net income of $136.3m,  up $14m or 11 percent from prior year’s net income of $122.3m.

In her review of the results for the year ended October 2024, Ms Bend said the bank “delivered another strong performance” as it continues to leverage digital infrastructure and deepen client relationships.

“2024 marked the completion of a significant transformation program which involved the rationalisation and consolidation of business lines and markets along with large investments in our technology platforms to enhance client experience and improve operational effectiveness. This culminated in our rebrand to CIBC Caribbean,” said Ms Bend.

“The bank delivered another strong performance for the fiscal year as we continued to execute our client-focused strategy by leveraging our digital infrastructure, deepening client relationships, investing in our people while enabling, simplifying and protecting the bank. Our strategic investments are creating a strong foundation for future growth and optimisation of resources across our various strategic business segments.”

Ms Bend said this financial performance was “positively impacted” by solid performing loan growth, higher US interest margins and a favourable provision for credit losses.

“Revenue performed well year-over-year as loan originations increased, and we benefited from a sustained uplift in other income. However, US interest rates are anticipated to fall in 2025 and may impact our revenue momentum; but could also promote increased credit demand in the market” said Ms Bend.

She noted that the bank had increased operating expenses due to spending on strategic investments and other regulatory costs but the credit losses were “significantly down” and their credit rating remains strong.

“We experienced higher operating expenses due to increased spending on strategic investments, activity-based costs and other costs associated with protecting the bank in a highly regulated environment. The provision for credit losses was significantly down from the prior year mainly due to a non-recurring account recovery, our credit quality remains strong,” said Ms Bend.

“Economic growth in the country advanced at a moderate pace in 2024, as output has already completed its recovery cycle following the COVID-19 pandemic. Tourism remains the primary engine of expansion, while robust construction activity also continues to strengthen growth. Additionally, inflation continues to soften. The country’s outlook remains stable, but potential threats to the global economy like commodity price shocks and/or slower global growth could negatively impact prospects.”