CIBC FirstCaribbean set to rebrand, exits Dutch Caribbean markets

CIBC FirstCaribbean International Bank Limited (CIBC FCIB) is set to rebrand under the name of its Canadian parent company, CIBC, as part of a larger transformation strategy. This move follows past attempts to align with its parent company, including an unsuccessful IPO listing on the NYSE and a proposed sale of a majority stake to Colombian GNB Financial Group.

Today, CIBC FCIB also announced its plan to sell the banking assets of its Curaçao and St Maarten branches to Orco Bank. This will result in the bank’s exit from the Dutch Caribbean market. Edward Pietersz, CEO of Orco Bank, perceives this acquisition as beneficial. Simultaneously, Mark St Hill, CEO of CIBC FCIB, views it as an opportunity for growth and consolidation in core markets like Barbados and The Bahamas.

Previously, CIBC FCIB had divested from several territories such as Aruba, St Vincent and the Grenadines, Grenada, and Dominican Republic following a failed acquisition deal with the National Bank of Dominica Limited.

In financial updates, CIBC FCIB’s share price closed Tuesday at TT$6.84 on the TTSE, marking a 26 per cent increase year-to-date. The bank paid a dividend to shareholders in September, totaling US$74.92 million for the 2023 fiscal year. The bank reported a 29 per cent revenue growth to US$554.40 million, with net profit surging 65 per cent to US$211.16 million. Loans and advances rose by two per cent to US$6.68 billion, while its securities portfolio increased to US$2.93 billion. The bank’s total liabilities and equity attributable to shareholders were US$11.40 billion and US$1.29 billion respectively.

CIBC FCIB’s earnings will be released in mid-December, with CIBC’s full year results expected on November 30. The bank’s market capitalization stood at TT$10.79 billion. Revenue from leading markets, Barbados and The Bahamas, was US$154.91 million and US$166.02 million respectively.

In other news, the Board of Directors at CIBC has sanctioned an external measure, set to commence from today. Additionally, Janine Billy has been appointed as the chief human resources officer at CIBC FCIB.

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