Sep 2011 Financial News

CIBC FirstCaribbean records $100m net income decline

Sep 12, 2011

CIBC FirstCaribbean International Bank group has recorded a decline in net income of more than BDS$100 million for the first nine months of this year.

According to consolidated financial statements for the period ended July 31, 2011, net income declined from US$124.5 million to US$70.8 million.

However, chairman Michael Mansoor noted that excluding securities gains, this was US$22 million, or 25 per cent, lower than the previous year.

Income before taxation dropped from US$134 million to US$79.8 million, while net interest income declined slightly from US$289.3 million to US$282.6 million.

Loan loss impairments also declined – from US$55.3 million to US$52 million.

Mansoor said revenues excluding securities gains decreased by two per cent year-on-year, driven by lower net interest income due to the slump in loan demand and growth as well as lower securities volumes resulting from disposals in the prior year.

“Expenses increased by four per cent year-on-year due to higher contractual, actuarial and one-time costs affecting remuneration and benefits, depreciation, advertising and business taxes; partially offset by lower loan loss impairment and taxation expenses,” he said.

According to Mansoor, “Management remains focused on cost and loan-delinquency containment during this protracted economic downturn which continues to limit revenue-generation opportunities.

“Capital ratios continue to be well in excess of regulatory requirements, placing the bank in a solid position to take advantage of opportunities that may arise in the future,” he said.


Source:
By Natasha Beckles
Nation News
Monday September 12, 2011

http://www.nationnews.com/articles/view/cibc-firstcaribbean-records-100m-net-income-decline/