CIBC FirstCaribbean International Bank’s acquisitions in the Cayman and Bahamas islands last year has been paying off.

The bank posted US$24 million net profit during the three months to October 31, compared to US$3 million for the same period last year.

The purchase of CIBC Bank and Trust in Cayman and CIBC Trust in Bahamas boosted profit and revenue, according to Michael Mansoor, chairman of the commercial bank.

FirstCaribbean paid US$76 million for the companies, which brought combined assets of US$1 billion and liabilities of US$960 million late last year.

The trust and fund administration services firms were bought to augment the bank’s wealth strategy.

Lower loan loss expenses also meant higher profit for the review quarter.

During the comparative quarter in 2011, the bank incurred a US$35 million loan loss impairment, but the bank did not say how large the impairment was during the three months under review.

On the other hand, loan loss impairment of US$97 million for the nine months to July 31 was already higher than the US$87 million recorded for the full financial year in 2011.

The FirstCaribbean chairman said that the bank has been ensuring that “there is adequate coverage for potential losses mainly due to exposures in the real estate/construction and tourism sectors”.

“The full year performance continued to be affected by the Bank’s wide scope of operations which span 17 countries,” said Mansoor in his review. “All of which are at varying degrees of economic recovery, but with many experiencing marginal growth, sluggish domestic demand and low interest rates.”

Net income for the financial year to October 31 was US$72 million, which was marginally lower than the US$74 million recorded for 2011.

Revenue for the 12 month period was up, largely due to the acquisitions, even though the new subsidiaries in Cayman and Bahamas also meant higher operating expenses.

“This was partially offset by cost containment strategies,” said Mansoor.

Non-performing loans were reduced as part of management’s strong focus in this area, while key balance sheet aggregates show improvements over the prior year, with three per cent growth in net loans, supported by two per cent growth in deposit liabilities.

“The capital base of the bank remains strong with capital ratios well in excess of regulatory requirements,” said Mansoor.