BUSINESS MONDAY: Bank hard-hit by COVID-19 pandemic

THE COVID-19 pandemic continues to impact negatively on the operations of CIBC FirstCaribbean International Bank and the markets the bank is serving.

That’s according to Ms. Colette Delaney as she reviewed the performance of the bank for the first quarter of its new financial year to January 31, 2021.

She reported that the bank’s net income for the three months ended January 31, 2021 was US$30.9 million. Ms. Delaney said this represents a 40 per cent decline from the US$20.9 million posted at the end of January 2020.

All companies have been hit hard by the pandemic, creating a ripple effect on economies around the Caribbean.

“The impact from COVID-19 pandemic continues to affect the interest rate environment as well as levels of business and economic activity in the region, which has contributed to overall lower revenue in the first quarter of 2021,” Ms. Delaney said.

She indicated further that the bank’s Tier One and Total Capital ratios are strong at 12.5 per cent and 14.7 per cent, which remain in excess of the applicable regulatory requirements.

“Although we have seen some positive signs in the first quarter, the current environment and the path to recovery remains uncertain,” she stated.

“Similar to the last quarter, the Directors have decided not to declare a dividend and will continue to monitor the effect of the COVID-19 pandemic on economic growth throughout the region,” Delaney said.

The CEO also acknowledged the February 2021 announcement that the transaction which would have seen GNB Financial Limited acquiring 66 and two thirds of the shares in the Bank would not now take place, as the regulatory approval has not been received.

Delaney noted that while that transaction would have supported “our long term growth prospects, it is only one way of supporting growth going forward”.

The official reported that CIBC has held a majority ownership stake in FCIB for a number of years and that there exists an excellent working relationship with a shared focus on meeting the needs of the bank’s own clients.