Jun 2012 Financial News

CIBC FCIB reports decline in net income

Jun 04, 2012

CIBC FirstCaribbean International Bank is reporting a slowdown in net income for the six months ended April 30, this year.

Chairman Michael Mansoor said that net income for the period was $29.4 million, versus $53.2 million for the comparative period a year ago.

“The key driver of this decline was the increase in loan loss expenses of $40.9 million, reflecting the continued strained economic climate in the region and reducing collateral values,” the Chairman explained.

“The Bank continues to work closely with clients to restructure facilities where appropriate to match available cash flows and meet their needs,” he reported.

Revenues were up year on year by $13.2 million due to increases in net interest income and operating income of $8.1 million and $5.1 million respectively.

Said Mansoor, “The increase in net interest income was driven mainly by reductions in funding costs and interest expenses related to hedging instruments, while the increase in operating income was primarily due to the acquisitions in September 2011 of CIBC Bank and Trust Company (Cayman) Limited and CIBC Trust Company (Bahamas) Limited partially offset by lower securities gains.”

Operating expenses, said the Chairman, were up $4.4 million, mainly driven by the above noted acquisition; partially offset by continued expense control. However, he reported that taxation expenses were down $7.5 million due to lower earnings on taxable jurisdictions.

Mansoor added that CIBC FirstCaribbean International Bank continues to maintain a strong foundation with Tier One and Tier One and Two capital ratios at 22 per cent and 23 per cent respectively – which are well in excess of regulatory requirements.

Directors have approved an interim dividend of one point five cents per share to be paid on June 29 this year to shareholders on record as at June 13. (JB)


Source:
Barbados Advocate
Monday June 4, 2012

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=25093