Amid a challenged economy, CIBC FirstCaribbean International Bank (Bahamas) Limited (FCIB) recorded a decline of 27 percent in non-performing loans for the fiscal year ending October 31, 2016.
In the bank's unaudited financial statements for the year published yesterday, Managing Director Marie Rodland-Allen provided a review on key statistics.
The review pointed out that demand for credit was better than the previous fiscal year, but is "generally expected to follow the lagging economic conditions".
"Despite the slow pace of economic recovery and uneven investment activity across the region, productive loans grew 11 percent over last year, while non-performing loans declined by 27 percent, together reflecting the bank's priority to grow its business with a sound risk management focus.
"Both retail and wholesale banking segments produced strong productive loan growth of three percent and 20 percent, respectively, as origination activity outpaced the prior year," said Rodland-Allen.
FCIB's net income was $70.6 million for the period, which is a seven percent increase from the prior fiscal year.
"Lower loan loss impairment expense was the main contributor to this result, as the bank benefited from increased loan recoveries and an improved loss experience," said FCIB.
Loan loss impairment was lower by $3.5 million when compared to the previous fiscal year's $14.9 million.
The bank also pointed out that non-productive loan balances were "substantially" reduced from last year.
"Additionally, significant effort has been placed on strengthening credit quality within our total loan portfolio," the bank continued.
FCIB recorded an increase of revenue by $1.1 million. However it was acknowledged that, "Interest margin pressure still persists with the pace of uplift slower than expected."
"Operating expenses of $91.2 million were in line with prior years' expenses. The bank is committed to discretionary expense control and strives to maintain a balance between the investment in its network, products and people," the review stated.
Rodland-Allen said, "While the economic outlook for the region remains modest, we are positive about the bank's future and believe we are well-positioned for sustainable growth and improved shareholder returns."
A final dividend of 15 cents per share will be made on January 30, 2017.

Click here to read more at The Nassau Guardian