By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

CIBC Caribbean (Bahamas) has revealed a first-half income decline of more than $10m due in part to a $5.85m year-over-year reversal on loan loss provisions.

The bank, unveiling results for the six months to end-April 2025 and the second quarter, said half-year profits were down more than 15 percent at $59.8m compared to $70.4m for the previous year. It also incurred loan loss provisions of $1.472m for the first six months as opposed to recoveries of $4.387m during the same period during its 2024 financial year.

CIBC Caribbean also incurred $5.582m in domestic minimum top-up tax for the first half, which represents the 15 percent corporate income tax imposed by The Bahamas to comply with the G-7/OECD global minimum tax mandate. Some $3.371m of this sum came due during the second quarter, covering the three months to end-April 2025.

Jacqui Bend, CIBC Caribbean (Bahamas) managing director, in her message to shareholders, said: “The bank has demonstrated another solid performance for the quarter, driven by a client-centric strategy. Despite facing challenges arising from global trade tensions and policy uncertainties, which have impacted economic growth, the bank has managed to maintain its strong performance.

“For the second quarter ended April 30, 2025, the bank reported net income of $30.2m compared to $27.9m from the second quarter a year ago. Core growth continued across our business segments in both the loan and deposit portfolios. However, the related revenue uplift has been offset by the impact of lower US benchmark interest rates and funding dynamics.

“Operating expenses increased by $0.8m or 2 percent from the prior year’s quarter as the bank continued to invest in key strategic initiatives. Income tax expense for the quarter, which includes the application of global minimum corporate tax, was up $3.4m,” she added.

“For the six months ended April 30, 2025, we reported net income of $59.8m compared to $70.4m from the second quarter a year ago. We recorded a higher year-to-date provision for credit losses compared to the same period a year ago due to a provision built in the impaired loan portfolio and the impact of model assumption updates.

“Additionally, the prior year’s provision included a significant account recovery. Overall, our underlying credit quality remains strong. At the end of the second quarter, the bank’s tier one and total capital ratios stood at 27.9 percent, exceeding regulatory requirements. The Board of Directors approved an interim dividend of $0.09 per share subject to regulatory approval.”