CIBC reports drop in profits

The Canadian Imperial Bank of the Caribbean (CIBC) has reported a reduction in profits for the quarter ended January 31, 2025.

In its condensed consolidated financial report, published on the TT Stock Exchange website on March 14, CIBC said profits declined from US$84.6 million in 2024 to US$55.8 million in 2025.

CEO Mark St Hill said the financial performance was impacted by higher provisions for credit loss.

He said the bank experienced increased provisions in the impaired loan portfolio.

The bank also reported higher operating expenses due to higher employee-related costs, spending on strategic investments and other costs associated with protecting the bank.

St Hill, however, said the bank’s overall credit quality is still strong.

"Revenue performed well year over year mainly driven by loan volume growth which offset the impact of lower interest margins due to declining US benchmark rates."

The bank's revenue for the quarter increased incrementally to US$186.1 million. For the same period the year before, CIBC earned US$183.6 million.

Operational income was US$58 million for the quarter as compared to US$84.6 million for the same period in 2024.

For the year ending October 31, 2024, CIBC reported a profit after tax of US$277.5 million, a three per cent increase from the same period ending October 31, 2023.

St Hill said the bank has introduced a new country management model in the first quarter which allows it to realign its talent structure to its current strategy.

He said the company has successfully optimised its geographical footprint, going down from 18 countries to 10 and 72 branches overall, to 45.

"This realignment prioritises, at the country level, business development, client-facing activities and people leadership," St Hill said.

He added that a senior leadership transition is underway starting with the appointment of a new chief country management officer Donna Wellington.

"We also recognise and celebrate the sterling contributions of our outgoing operating company managing directors in the Bahamas, Cayman Islands, Jamaica and TT," he said.

CIBC said the board of directors has approved a 0.0125 cents per share to be paid on April 24.

The bank’s statements said its basic diluted earnings per share was 3.4 cents per share for the quarter ending January 31, 2025, as compared to 5.2 cents per share for the same period the year before.