CIBC Caribbean Bank Limited has demonstrated financial resilience by remaining profitable throughout 2025, despite absorbing a substantial loss from a non-core investment. The institution reported net earnings of US$159.7 million for the fiscal year concluding October 31, representing a decline from the previous year’s US$277.5 million.
CEO Mark St Hill attributed the diminished figures to elevated credit costs, recently implemented tax regulations, and an exceptional investment loss. The bank’s headline performance was significantly affected by atypical financial elements, including a US$56.2 million fair value depreciation on a non-core investment, partially mitigated by a US$2.4 million net gain from previously announced divestitures.
When excluding these extraordinary items, the bank’s adjusted net income reached US$213.5 million, compared to US$285.2 million in 2024. This underlying performance was primarily pressured by increased provisions for credit losses and heightened income taxes resulting from the Bahamas’ adoption of the Global Minimum Tax Framework.
Despite these financial headwinds, CIBC Caribbean successfully expanded its lending operations across the region. The bank’s client-centric strategy, supported by a robust capital foundation, facilitated the development of its largest performing loan portfolio in history. This achievement enabled the institution to maintain solid core operational performance while managing specific credit and operational challenges.
The broader Caribbean economic landscape witnessed moderated expansion in 2025, with tourism growth decelerating across several markets. Inflationary pressures generally receded alongside declining commodity prices, while fiscal conditions improved in certain territories.
Looking forward, the region faces persistent risks including evolving global trade policies, geopolitical tensions, and weather-related disruptions. Nevertheless, the regional outlook remains broadly stable entering 2026.
Financially, strong loan portfolio growth effectively counterbalanced the negative impact of lower US interest rates on net interest income. Operating expenses increased by 6% (US$26 million) due to elevated personnel costs and continued investments in technological infrastructure and strategic initiatives.
The bank reinforced its provision for credit losses, primarily driven by impaired securities and enhanced risk modeling methodologies. CIBC Caribbean maintained strong capital adequacy, with tier one and total capital ratios standing at 18.3% and 20.8% respectively at fiscal year-end. Reflecting this financial strength, the board authorized a quarterly dividend of US$0.0125 per share, payable January 15, 2026.