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CIBC FirstCaribbean's regional headquarters in Bridgetown, Barbados. (File photo)

CIBC FirstCaribbean reports increased profits after reducing non-performing loans

CIBC FirstCaribbean's regional headquarters in Bridgetown, Barbados. (File photo)

CIBC FirstCaribbean International Bank (FirstCaribbean) reported a 69 per cent improvement in its net income for the year ended October 31, 2019, after a considerable reduction in non-performing loans on its books.

The bank’s total revenue for the year reached US$616 million, from US$581.4 million in 2018, reflecting an increase of six per cent. In contrast, credit loss expense on financial assets plummeted from US$101.8 million last year to US$3.6 million at the end of financial year 2018/2019.

“For the fiscal year ended October 31, 2019, the bank reported net income of [US]$170.5 million, up [US]$69.7 million or 69 per cent, a significant increase from last year’s net income of [US]$100.8 million,” a statement from Chief Executive Officer of FirstCaribbean Colette Delaney read.

Chief Executive Officer of FirstCaribbean Colette Delaney

Dated December 10, 2019, the statement continued, “Our earnings were driven by solid growth in our performing loan book. Credit loss expense was improved as the bank benefited from model enhancements and changes to assumptions due to lower probability of defaults. This was offset by increased taxation and higher operating expenses.”

Taking into consideration adjustments, including gains on debt securities based on IFRS 7 and losses on translation of foreign operations, FirstCaribbean realised a net comprehensive income of US$209 million for financial year 2018/2019.

Total assets for the year rose by five per cent, increasing from US$11 million in 2018 to US$11.6 million at October 31, 2019.