CIBC Caribbean Bank (Jamaica) Limited is zeroing in on its digital strategy to maintain its growth momentum in 2026.

The Jamaican arm of the regional bank has deployed $1.56 billion in capital expenditure over the last two years to strengthen its digital infrastructure and improve its positioning in the marketplace. This has benefited its existing customers who now have better control over their digital interactions with the bank while improving the onboarding process for new clients.

These initiatives form part of its direct parent company, CIBC Caribbean Bank Limited, plans to position Jamaica as its lynchpin for the group’s growth strategy. Jamaica was responsible for 30 per cent of new clients added by CIBC Caribbean Bank in the October 2024 financial year (FY). CIBC Caribbean also injected $4.62 billion or US$30 million into its Jamaican operations in 2024.

“The bank’s investment in Property & Equipment over the last two years is largely linked to spend on technology assets related to our digital banking strategy, strengthening the bank’s infrastructure and improving operational resilience,” said Annique Dawkins, Head of Country – Jamaica in emailed responses to Jamaica Observer queries.

CIBC Caribbean Bank (Jamaica) saw its net loan and advances book improve eight per cent to $119.83 billion during its financial year which ended October 2025. The personal loan segment saw gross loans rise 24 per cent to $24.20 billion while mortgages improved 16 per cent to $21.70 billion.

When asked about the growth strategy for these two segments, Dawkins responded, “The bank’s loan growth in mortgages and personal loans aligns well with the overall group growth strategy. The investment in our digital lending platform, coupled with focused targeting of the Jamaica mortgage market, demonstrates our confidence in this territory as a key growth market.”

While the bank has benefited from a larger loan book and a stronger digital platform, its 2025 financial year was challenged by a mixture of higher operational expenses, higher expected credit loss (ECL) provisions and slightly lower yields on loans.

CIBC Caribbean Bank (Jamaica) saw its interest income rise seven per cent to $12.20 billion, but it’s net interest income only grew four per cent to $7.50 billion. This was due to its interest expense rising 11 per cent to $4.70 billion as it paid more interest on customer deposits. Customer deposits increased 11 per cent to $177.22 billion.

“While we have observed a narrowing between interest income and interest expense, we do not anticipate significant additional margin compression. However, the short to medium term outlook will depend on various domestic and global economic factors, including inflation and labour market conditions. We continue to actively manage our pricing and funding conditions to support margin stability and predictability,” Dawkins added as the bank recorded an average interest yield of 7.63 per cent on its loans.

CIBC Caribbean (Jamaica) total operating income grew four per cent to $11.31 billion as it benefited from higher foreign exchange gains. However, the ECL provision for the period increased 62 per cent to $555.37 million due to non-performing loans (NPL) rising 51 per cent from $947.35 million to $1.43 billion. That translates to a NPL ratio of 1.18 per cent.

The Jamaican arm also saw its operating expenses jump eight per cent to $10.51 billion due to higher staff costs related to salary increases and technology expenses. CIBC Caribbean Bank (Jamaica) had a $165.42 million severance cost in its staff costs breakout. Without this expense, staff costs would have only gone up by two per cent for the year versus the recorded 12 per cent.

Nigel Holness went on early retirement in May 2025 and became the chairman of the Jamaican bank after serving as the managing director for nearly 15 years. Dawkins took over as the new country head in the same month.

The higher loan loss provisions and operating expenses pushed the Jamaican are of the bank’s profit before tax down 67 per cent from $713.15 million to $238.49 million. Net profit for the 2025 period declined 88 per cent from $380.31 million to $45.91 million.

Despite the bumper year, CIBC Caribbean Bank (Jamaica)’s asset base increased 10 per cent to $201.37 billion with $19.56 billion in equity/capital. Its tier one/total capital ratio was 14.09 per cent, well above the ten per cent regulatory minimum. The board of directors approved the transfer of $45.91 million to the statutory reserve fund and retained earnings reserve effective January 2026.

The bank is currently moving on track with its Barbadian parent which intends to roll out a mobile near field communication (NFC) app with Fygaro to allow for merchants to turn their phones into secure payment terminals. Its parent company is also expanding its digital lending app and the integration of artificial intelligence in its operations.

CIBC Caribbean Bank (Jamaica) is now navigating the headwinds that are set to come with the passage of Hurricane Melissa. It reopened all its branches by November 12 and had no material damage. However, its clients are now challenged with the aftermath of the category five storm which has significantly impacted Western Jamaica.

“Hurricane Melissa mainly impacted the western side of the island. We continue to closely monitor the situation as the full impact from the hurricane will become more apparent over the next several quarters. Based on engagement with our clients and our loan pipeline we do not foresee any meaningful reduction in demand from the business and government sector. Overall, we remain confident in our diversified client base and resilience in client operations,” Dawkins added on the business and government segment which had $75.53 billion in gross loans.

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.

“Notwithstanding continued economic uncertainty, especially the earlier months of 2026, our balance sheet remains strong, and our core businesses continue to perform well. CIBC has been in Jamaica and by extension the Caribbean for over a century and have navigated various challenges over the years and I am very confident we will continue to manage well. I am excited to navigate the current challenges and lead the institution going forward,” Dawkins closed.

DAWKINS…the investment in our digital lending platform, coupled with focused targeting of the Jamaica mortgage market, demonstrates our confidence in this territory as a key growth market.