CIBC Caribbean has credited improved economic conditions in the region for its improved performance in the first six months of the financial year (FY) 2023/24.

The banks also said its investment in technology and talent were additional contributors to increases in revenues and profits for the half-year.

“The bank delivered another quarter of solid operating results and continues to create value for its stakeholders in the current operating environment. The ongoing execution of our client-focused strategy leveraging our digital infrastructure, client experience enhancements, and investment in our people, positions us well for the future,” CEO Mark St Hill told shareholders in his report attached to financials.

For the period ended April 30, 2024, CIBC Caribbean posted revenues of US$373.52 million or 1.8 per cent more than the US$366.98 million recorded in the corresponding period last year. Net income for the six months was US$152 million, which was US$7.4 million higher than the prior year’s reported net income.

The bank said that if it should exclude expenses relating to its divestment activities, its adjusted net income would be US$159.2 million or 15 per cent over the prior year’s adjusted net income of $138.9 million.

“Our financial performance to date has been positively impacted by higher revenue mainly due to higher net interest margin on our US dollar loan portfolio, as well as a lower provision for credit losses due to an improved regional economic outlook and account recovery efforts. We continue to maintain disciplined risk management. We have also experienced higher operating expenses year over year due to ongoing strategic investments, employee-related costs and inflationary pressure,” St Hill stated.

For the second quarter, CIBC’s revenues reached US$189.86 million or 3.7 per cent more than revenues for the same period in 2023. Its net income of $67.4 million was, however, less than the US$76.5 million in the corresponding period under review.

“Market conditions in the region underpin the bank’s growth momentum, as most countries have reached pre-pandemic levels of economic activity. The regional growth outlook is forecasted to continue through the medium term, albeit at a moderate pace. However, we continue to closely monitor downside risks related to the global economy, inflation, supply chain disruption and interest rates,” the CIBC Caribbean CEO explained.