The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Opposition Leader Michael Pintard called on the Davis administration to provide “comprehensive” banking reforms to end “unjustifiable” bank charges.

Mr Pintard noted that CIBC reported a net income of $33.3m for the third fiscal quarter of 2024, up from $30.9m the previous year which demonstrates their ability to introduce low or no fee accounts people with low income.

“The healthy third-quarter financial reports of CIBC reported last week point to increasing year-on-year profitability; their performance is consistent with the positive results of most financial institutions across the country’s commercial banking sector,” said mr Pintard.

“The strong performance and increasing profitability of Bahamian banks aligns with the FNM’s stated position that there exists sufficient space within banks’ commercial framework to introduce low-fee/no-fee accounts to low income earners, students and senior citizens on modest fixed incomes.”

He suggested The Bahamas adopt measures aimed at financial inclusion and affordability as regional partners such as Barbados and Belize have done.

Mr Pintard said although the Central Bank is looking into implementing a basic account option for low income people the Davis administration should “step to the forefront” of resolving the issue.

“The Opposition welcomes the announcement by the Governor of the Central Bank that it is mulling the requirement that all banks offer a low fee ‘basic account’ and separately, that the Central Bank is looking to prohibit merchant overcharges on credit card transactions,” said Mr Pintard.

“However, while the FNM will continue to unreservedly support the work of the Central Bank in its efforts to protect consumer interest, we maintain that the Davis administration must step to the forefront of these efforts. It is time for our government to show true leadership.

“We call on the Davis administration to articulate a comprehensive package of banking reforms that will eliminate unjustifiable charges, implement low fee/no fee accounts for certain market segments, re-introduce branch banking to Family Island communities, and support new and additional Bahamian investments in banks and other financial institutions.”

Jacqui Bend, CIBC managing director, last week highlighted the bank’s stellar performance, emphasizing its commitment to a client-focused strategy that leverages digital infrastructure, deepens client relationships, and fosters a connected workforce.

“For the third quarter of fiscal 2024, we achieved a net income of $33.3m, up from $30.9m the previous year. For the nine months ending July 31, 2024, our net income reached $103.6m, an increase of $12.6m, or 14 percent, compared to $91m in the prior year,” said Ms Bend.

She noted that US benchmark rate reductions can affect the “revenue momentum” of the institution.

“Our financial performance has benefited from increased revenue, primarily driven by higher net interest margins in our US dollar loan portfolio and growth in our interest-bearing assets,” she explained.

“Our focus on client relationships and strong loan originations in corporate and personal banking have contributed to this growth. However, we anticipate that headwinds from US benchmark rate reductions may affect our revenue momentum.”