Jamaica was the all-star market for CIBC Caribbean Bank Limited (formerly FirstCaribbean International Bank Limited) as it accounted for 30 per cent of new clients added across the region in what was a transformational year for the regional bank.

This was mentioned in CIBC Caribbean’s 2024 annual report by Chief Executive Officer (CEO) Mark St Hill as he detailed the changes which took place during 2024. Apart from completing the sale of its Curaçao business on May 24 to Orco Bank N V, CIBC Caribbean injected over US$25 million into the Jamaican business which received $4.62 billion in total during the second and third quarter. This supported the growth in the Jamaican business’ asset base by 10 per cent to US$1.19 billion, with revenue improving five per cent to US$70.20 million ($11.03 billion). An additional US$8.87 million was spent during the year on capital expenditure to support the business’ growth which saw the loan book rise from $88.94 billion in October 2023 to $108.75 billion in September 2024 as per Bank of Jamaica (BOJ) publications.

“2024 marked the completion of a significant transformation programme 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, and although we now operate across a smaller geographical footprint, we are a bigger bank with the largest loan portfolio and highest number of customers in our history,” said St Hill in his CEO report.

CIBC Caribbean has cut its number of jurisdictions over the years to 11 markets which is supported by 2,700 employees across 48 branches and offices. This reduction in markets has also been accompanied by continued investments in technology. Thus, while there hasn’t been any recent cut in the number of branches, the digital shift for its clients is quite evident by the fact that 72 per cent of its client base uses digital and online banking, over-the-counter branch transactions were cut by 20 per cent and digital transaction volumes grew 16 per cent to 33 million.

CIBC Caribbean also worked on moving a greater share of its branch-only services online. Apart from ensuring existing clients can open new accounts within three minutes, new clients in certain markets can be onboarded digitally with no need to visit a branch unless they need to collect a debit card. Otherwise, clients can now make unscheduled loan payments to personal loans online without needing to go in branch, which will assist in paying down the principal on their loan faster. Clients can also do cross-border payment tracking for international wire transactions and get updates on potential issues affecting the transfer. The improvement to the retail banking business was also realised through the delivery of 8,551 loans and 1,732 cards to clients via digital channels.

“Overall, this year’s record financial performance has been 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,” St Hill added on the impact of changing interest rates.

For the 2024 financial year (FY) ending October 31, CIBC Caribbean recorded a 10 per cent rise in interest income to US$621.15 million as it benefited from increased loan disbursement and higher interest earned on securities. Even with an increase in interest expense, CIBC Caribbean’s net interest income improved six per cent to US$540.93 million. Overall income was up four per cent to US$746.57 million.

After accounting for higher expenses and operating expenses, which was related to higher staff remuneration and the disposal of two markets, the profit before tax from continuing operations was up four per cent to US$302.29 million. Net profit from continuing operations was up six per cent to US$275.72 million. After accounting for the discontinued operations, consolidated net profit was up three per cent to US$277.51 million, with US$270.99 million attributable to shareholders. According to CIBC Caribbean’s quarterly report, adjusted net income was up seven per cent from US$267 million to US$285.2 million.

It should be noted that CIBC Caribbean benefited from a gain of US$1.4 million on the sale of property in Dominica in June 2023 and had a US$0.2 million loss on the sale of the performing loan portfolio. Also, the sale of the Curaçao banking assets resulted in a gain of US$5.7 million and the Grenada sale of banking assets in July 2023 resulted in a US$3.7-million gain.

Consolidated total assets for the regional bank improved six per cent to US$13.31 billion during the 2024 FY, with US$156.43 million attributable to the Sint Maarten operations which are classified as held for sale until the sale to Orco Bank is complete. The bank’s loan and advances portfolio grew five per cent to US$6.96 billion, with undrawn loans at US$1.45 billion. Even the US$227.23 million in gross loans and advances recorded in stage three or foregone pales in comparison to the US$6.95 billion in loans split between stage one and stage two, with US$6.17 billion being in stage 1 or current. Eighty-nine per cent of stage three loans are partially or fully collateralised.

The banks securities/investment portfolio also improved 11 per cent to US$3.17 billion, while its cash and cash equivalents closed at US$1.50 billion. Total consolidated liabilities increased five per cent to US$11.68 billion, with US$121.88 million related to Sint Maarten. Deposits grew seven per cent to US$11.29 billion. Consolidated shareholder’s equity was up 21 per cent to US$1.63 billion, with equity attributable to shareholders at US$1.59 billion.

The company changed its ticker from FCI to CIBC on November 7 on the Trinidad and Tobago Stock Exchange (TTSE) in alignment with the overall rebranding. CIBC Caribbean closed at TT$7.70 on Tuesday, with it hitting a 52-week high of TT$9.03 on December 9, which leaves it up nine per cent in 2024 with a market capitalisation of TT$12.14 billion (US$1.79 billion). The current closing price puts it back to pre-COVID-19 levels when it closed in that region in March 2020. CIBC also declared a US$0.0125 dividend totalling US$19.71 million to be paid on January 17 to shareholders on record as of December 27. CIBC Caribbean has also set January 25 as the record date for shareholders to receive the annual general meeting (AGM) notice for the 31st AGM to be held on March 14, 2025.

CIBC Caribbean has appointed Monique French as its new Chief Risk Officer effective May 1, 2025 as the current holder Patrick McKenna retires on April 30, 2025. French currently serves as the Chief Credit Officer of CIBC Caribbean Bank.