Profitability has surged at CIBC Caribbean Bank Limited after positive revenue, loan and deposit growth.
Chief executive officer (CEO) Mark St Hill has reported that for the nine months ended July 31, the company, which has its headquarters in Barbados and operates in several other Caribbean markets, earned net income of US$167.7 million, an increase of US$53 million, or 46 per cent, from US$114.8 million reported in the prior year.
For the third quarter of fiscal 2026, the bank reported net income of US$62.8 million compared with a net loss of US$1.1 million in the prior year.
He gave these details in the CEO review accompanying CIBC Caribbean’s condensed consolidated financial statements for the nine months ended July 31, “The bank continued to execute its strategic priorities by deepening client relationships, advancing digital capabilities, and strengthening operational resilience, resulting in a strong quarter three 2026 performance,” St Hill said.
“This performance was underpinned by disciplined risk management, prudent capital management, and continued momentum stemming from a diversified business operating within a dynamic environment.
“Together, these factors resulted in positive revenue, loan and deposit growth.”
The CEO noted that “after adjusting for items of note for the nine-month period, adjusted net income was US$181.3 million, up US$12.7 million, or eight per cent, from US$168.6 million in the prior year”.
“Adjusted revenue increased by three per cent to US$591.1 million, driven by growth in interest-earning assets and robust client transaction activity,” he said.
“Overall performance also benefited significantly from lower credit losses, primarily reflecting account recoveries and updated macroeconomic inputs to our credit risk models.
“These gains were partially offset by increased operating expenses related to higher employee costs, business activity and spend on strategic initiatives, as well as increased income tax expenses.”
Strong core operating performance
For the third quarter alone, St Hill noted that “excluding items of note, comprising a US$10.7 million fair value loss on a non-core investment and US$2.9 million of acquisition-related expenses, adjusted net income was US$76.4 million, up US$32.2 million, or 73 per cent, from US$44.2 million adjusted net income in the prior year”.
He added that the third quarter’s results “reflected strong core operating performance across the business and significantly lower credit losses”.
St. Hill also reported that CIBC Caribbean’s capital was in a strong position.
“At the end of the third quarter, the bank’s Tier 1 and total capital ratios continued to reflect a strong capital position at 19 per cent and 21.3 per cent, respectively, exceeding regulatory requirements,” he said.
“The board of directors approved a quarterly dividend of $0.0125 per share, payable on October 15, 2026, to shareholders of record as of September 17, 2026”.
St. Hill said CIBC Caribbean was operating in a Caribbean economic climate where the outlook “remains positive but is subject to heightened downside risks from geopolitical tensions, higher energy prices, and weaker growth in major source markets”. (SC)
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