Last update: 09-Dec-2013 8:52 pm
Monday, December 09, 2013
Trinidad & Tobago Guardian Online
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CIBC FirstCaribbean lowers credit losses
CIBC FirstCaribbean International Bank Ltd lowered credit losses in the 3Q of 2013, parent company CIBC said in the release of its financial results on August 29.
Different from the calendar year, CIBC’s fiscal year brought 3Q to an end on July 31.
CIBC said: “Provision for credit losses for the nine months ended July 31, 2013 was down CA$113 million or 12 per cent from the same period in 2012. In retail and business banking, the provision was down mainly due to lower write-offs and bankruptcies in the cards portfolio, partially offset by the charge resulting from a revision of estimated loss parameters noted above.
In wholesale banking, the provision was down mainly due to lower losses in the US real estate finance portfolio, partially offset by higher losses in the exited European leveraged finance portfolio. In corporate and other, the provision was up mainly due to the increase in the collective allowance noted above, partially offset by lower losses in FirstCaribbean International Bank Ltd (CIBC FirstCaribbean).”
CIBC reported that its net income was CA$890 million, compared with CA$841 million for the third quarter a year ago and CA$876 million for the prior quarter. FirstCaribbean reported net income of US$43.1 million for the nine months ended July 31, versus US$47.6 million for the same period in the prior year. Net revenues of US$392.9 million for FirstCaribbean were down US$8.6 million when compared with the corresponding nine-month period in the prior year.
“This reflects the continued strained economic conditions in the region,” FirstCaribbean chairman Michael Mansoor said in his review of the results.
“Despite the challenging overall economic environment, loan loss impairment expenses were down US$20.9 million reflecting a degree of improvement in this area. Operating expenses of US$270.2 million were up US$12.5 million due to higher business taxes and non-credit losses. Total assets of US$11.7 billion were up 3.7 per cent against the same period in the prior year,” he said.
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