THE CIBC Jamaica Group saw net profit increase by just over 105 per cent in the year to the end of October 2000, moving up to a whopping $228.8 million from some $111.3 million the previous year.
The banking arm of the Group, which is majority-owned by CIBC West Indies Holdings, accounted for the bulk of the profit, $150.1 million, with its subsidiaries CIBC Trust and Merchant Bank and CIBC Building Society raking in the remainder.
According to the audited financial statements released last week, the Group saw its loan portfolio increased to $1.1 billion from just over $1 billion in 1999, while deposits remained flat.
While CIBC has not, in the statement, attributed its increase in profit to any re-organisation of the financial institution, there was a reduction in its full-time and part-time staff from 513 in 1999 to 440 at the end of October, and a consequent $68.5 million decrease in employee compensation to $435.5 million from just over $501 million the previous year.
The Group's balance sheet shows that assets, which include cash resources, investments, guarantees and letters of credit, increased by just over $2 billion to $15.8 billion, while its liabilities moved up to $14.7 billion from $12.7 billion in 1999.
Earnings per stock unit, based on the net profit for the year and the 193.3 million ordinary stock units of 50 cents each, increased to $1.18 from 58 cents the previous year.
CIBC's profits can be attributed to its performance on the Jamaica Stock Exchange (JSE), where its share price moved from $3.90 in January 2000 and settled at $8.90 by the end of the year.
Last year also saw CIBC celebrating 80 years of operation in Jamaica, a year in which it also reduced its prime lending rates by five per cent, down to 26 per cent from 31 per cent, effective June 1, 2000.
Raymond Campbell, CIBC Jamaica's vice-president for Commercial Clients and Corporate Affairs, attributed the reduction in interest rates to the stabilisation of the rate of inflation and the general reduction of the level of interest rates in the country. It is also in keeping with the bank's policy to offer its customers attractive lending rates.
CIBC Building Society also reduced its mortgage rates for new business, from 23 per cent down to 18.75 per cent, effective May 1, 2000 to facilitate more affordable residential mortgage loans.
In March, CIBC Jamaica made the posts of 15 employees redundant in a continuing cost-cutting exercise, and announced that it would be setting a ceiling of five per cent on salary increases for the year in keeping with the prevailing inflation rate.
