DESPITE the positives achieved with further technological integration and a stronger Jamaican business, CIBC Caribbean Bank endured a challenging year as consolidated net profit dropped 42 per cent to US$159.71 million.

The current year’s results were impacted by a US$56.16-million fair-value loss on structured notes issued by a third-party fund. This was offset by a US$2.4-million net gain from the previously announced divestitures of some markets. Excluding these events, CIBC Caribbean’s adjusted net profit for the October 2025 financial year (FY) would have been US$213.5 million, a decline from the US$285.2 million adjusted net profit reported for FY2024.

Apart from the fair value loss, CIBC Caribbean also had a significant credit loss in the Cayman Islands, while its Trinidad and Tobago operations had a loss due to a reported fraud incident during the year. This was compounded by the impact of lower US interest rates and higher funding costs on some of its investments.

“Our CEO Mark St Hill, his executive team, and the staff all around the Caribbean, rallied together to put the fixes in place — both on the operational and client relationship sides of the business — to reassure our team and shareholders and to end the fiscal [year] in a strong financial position,” said CIBC Caribbean Chairman Brian McDonough in the annual report.

CIBC Caribbean’s consolidated net interest income was stable at US$539.68 million as its interest expense increased 23 per cent due to higher costs on customer deposits. However, the bank’s loan portfolio increased seven per cent to US$7.44 billion, with interest income on these loans rising five per cent to US$469.43 million. CIBC Caribbean Bank was also involved with the Government of Barbados’s first sustainability-linked loan worth US$178 million.

Despite the hurdles in the 2025 FY, CIBC Caribbean saw several advances in its digital banking and payments infrastructure. The regional bank enhanced its client onboarding platform for personal accounts in Barbados, Antigua, St Lucia, and St Kitts & Nevis, which allows for these accounts to be opened in as little as 20 minutes. There was also a new self-service platform which has AI-powered facial recognition and ID verification, to improve client convenience.

These improvements come at a time when nearly 80 per cent of clients actively engage in digital channels across the region, with 95 per cent of all financial transactions conducted digitally. Online and mobile transaction volumes also grew by double digits, with its cross-border payments infrastructure strengthened through the upgrade to the SWIFT ISO20022 Message standard during the year.

CIBC Caribbean Bank was also able to have a fully digital, end-to-end approach for its personal unsecured lending, credit cards, and auto loans, through its digital lending app. These technological initiatives will be supported by GenAI-driven, hyper-personalised offers as the regional bank integrates AI and advanced automation into its business.

“Our client-focused strategy across our regional footprint, supported by a strong capital position, allowed us to build the largest performing loan book in our history. This resulted in the bank delivering a solid, underlying core performance while we navigated select credit and operational pressures within a shifting macroeconomic landscape,” said CIBC Caribbean Chief Executive Officer (CEO) Mark St Hill in his remarks.

CIBC Caribbean’s total asset base increased four per cent to US$13.83 billion, with its investment securities increasing eight per cent to US$3.41 billion and with cash and balances in central banks at US$1.58 billion. Total liabilities increased four per cent to US$12.09 billion with deposits rising five per cent to US$11.81 billion. Shareholders’ equity grew seven per cent to US$1.70 billion, which translates to a book value of US$1.08.

CIBC’s stock price closed at TT$8.28 on Tuesday, putting it up two per cent for the year to date with a market capitalisation of TT$13.06 billion. It closed at Bds$2.06 on the Barbados Stock Exchange (BSE) which leaves it up three per cent. CIBC also declared a US$0.0125 dividend, totalling US$19.71 million, to be paid on January 15 to shareholders on record as of December 18. John Silverthorn resigned from the board on December 11 as Ellen “Jackie” Goldman replaced him as a majority shareholder director. January 23 has been set as the record date for shareholders to receive notice for the company’s 32nd annual general meeting (AGM) to be held on March 13.

The Sagicor Equity Fund increased its interest in CIBC Caribbean through the purchase of 2,121,935 shares to become the second-largest shareholder with 13,054,143 ordinary shares or 0.83 per cent. Peter Wing Chuan Ayuen bought an additional 230,000 ordinary shares while Fortress Mutual Fund Limited bought an extra 50,000 ordinary shares.

Jamaican operations prove resilient

CIBC Caribbean’s Jamaican operations withstood the impact of Hurricane Melissa as the Jamaican business had no material damage; insurance claims are unlikely to materialise as damage is estimated to be below insurance policy deductibles. Full branch operations resumed by November 12, after addressing some physical damage.

“As at October 31, 2025 no material ECL qualitative adjustments or overlays were deemed necessary, based on the existing downside case scenario weighting applied against forward-looking information variables and the overall prospects of stage migration. It is generally understood that the full impact from Hurricane Melissa will become more apparent over the next several quarters; and we will continue to closely monitor the situation and update ECL during future provisioning cycles,” CIBC Caribbean Bank noted in its audited financials.

CIBC Caribbean Bank and its parent CIBC donated US$500,000 ($79.50 million) to the relief and restoration efforts in Jamaica via CIBC Caribbean ComTrust Foundation.

In addition, CIBC Caribbean Bank (Jamaica) Limited has launched a comprehensive financial relief programme to support its clients who have been significantly affected by the Category 5 hurricane. This special assistance programme aims to ease the immediate financial burden on clients while supporting their long-term recovery. This includes payment moratoriums on existing loans, mortgages, and credit cards; special loan financing to assist with rebuilding and repair needs; and flexible concessions to absorb the financial strain caused by storm-related damage. This package is meant to assist its customers across the personal banking, small business and commercial segments who have been severely affected.

“Hurricane Melissa has caused immense disruption, and many of our clients are now grappling with physical loss as well as financial uncertainty. Our responsibility is to help restore stability by providing practical, accessible financial solutions,” said Annique Dawkins, recently minted head of country for CIBC Jamaica.

CIBC’s Jamaican operations continued to advance forward as total revenue increased two per cent to US$71.87 million ($11.47 billion) with assets rising eight per cent to US$1.28 billion ($204.54 billion). There was also an additional US$3.74 million spent on capital expenditure during the year, covering both property, plant, and equipment and intangible assets.

The Bank of Jamaica’s (BOJ) unaudited balance sheet report for the period ending September 30, 2025, showed that CIBC Caribbean Bank (Jamaica) Limited’s loan book had increased six per cent from $111.33 billion in October 2024 to $118.37 billion in September 2025. The Jamaican business’ asset base of $204.87 billion was not far from JMMB Bank (Jamaica) Limited’s asset base of $217.46 billion. CIBC Caribbean (Jamaica) is the sixth-largest commercial bank in Jamaica. The standalone financials for the Jamaican business should be published by January 29.