Feb 2013 Financial News

CIBC Jamaica profits plummet

Feb 25, 2013

CIBC FirstCaribbean International Bank Jamaica has reported lower net profits for its financial year ended October 2012, declining by 46 per cent to J$83.9 million compared to J$156.8 million the previous year.

The profits represent credible performance by the Bank's subsidiary, FirstCaribbean Building Society as the bank itself posted year on year net losses.

The J$83.9 million in net profits actually reflects net earnings of J$322 million contributed by the building society with the commercial bank recording net losses of J$238 million.

Overall the entities reported a marginal decrease in total operating income, moving from J$4.3 billion to J$4 billion for the financial year.

However, the bank lowered its loan loss impairment significantly to J$187 million from J$598 million during the corresponding period the previous year.

In notes appended to its financial statements, CIBC FirstCaribbean reports non-performing loans of approximately J$1.9 billion compared to J$5.2 billion at the end of its 2011 financial year.

Of the nearly J$1.9 billion, businesses and government accounted for J$964 million, followed by mortgages at J$500 million and personal loans at J$415.7 million.

CIBC FirstCaribbean is Jamaica's fourth largest commercial bank with an asset base of J$48.4 billion at the end of October 2012. However, that represents a decrease over the last two year when its assets totalled just over J$50 billion.

CIBC is part of a regional banking network with parent company CIBC FirstCaribbean International headquartered in Barbados.

For its last financial year the Jamaican operation saw increased operating expenses, moving up by approximately 9 per cent from $3.5 million to $3.8 million.

Cash and cash equivalents at the end of the year was also lower at J$6 billion, down from J$8.5 billion the previous year.


Source:
sabrina.gordon@gleanerjm.com
Jamaica Gleaner
Monday February 25, 2013

http://jamaica-gleaner.com/gleaner/20130225/business/business2.html