CIBC Caribbean Bank Jamaica Limited has seen significant growth in its capital, reaching nearly $20 billion through the issuance of shares to its parent company, as detailed in its recent financial report. Despite this impressive increase, the bank also reported a substantial drop in profit.
Key Points:
– Capital strength has increased by 39%
– Profit has decreased by two-thirds
– The issuance of shares added $4.6 billion to the local bank’s capital
The bank highlighted that this boost in capital not only protects depositors and creditors but also positions them to capitalize on profitable business opportunities and maintain favorable credit ratings. Nigel Holness, the head of CIBC Jamaica, emphasized the importance of a robust and efficient capital base to support the bank’s objectives.
In the financial year, CIBC Jamaica issued 348.85 million ‘A’ ordinary shares to its parent company, CIBC Caribbean Bank Limited, based in Barbados. This transaction increased the total comprehensive income and raised the capital base from $14 billion to $19.7 billion in 2024.
Comparison Among Commercial Banks in Jamaica:
– CIBC Jamaica ranks third in capital base
– Recent injection narrows the gap with JMMB Bank Jamaica, which has $20.8 billion in capital
– Other banks’ capital bases range from $4.6 billion to $119.1 billion
While the local bank experienced revenue growth of 6.0% to $10.8 billion, factors such as increased staff costs and depreciation led to a profit decrease to $380 million from $1.1 billion. Despite this, loans and deposits showed positive growth, increasing by 25% and 10% respectively.
CIBC Bank Caribbean, formerly known as FirstCaribbean International Bank, underwent a rebranding to CIBC last September. The transition aligns the regional network, including CIBC Jamaica, under a unified brand identity.
The recent financial developments reflect CIBC Caribbean Bank Jamaica Limited’s commitment to strengthening its financial position while adapting to changing market conditions. The bank’s strategic initiatives and focus on capital growth position it for future success in the financial landscape.
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