NASSAU, BAHAMAS – Commonwealth Bank reported a strong financial performance for the first half of 2024, with a consolidated net profit of $34.1 million, compared to $35.9 million for the same period in the prior year.
William B. Sands, Jr., Executive Chairman of the BISX-listed lender, noted that the current period’s net profit reflects solid financial results amidst steady revenue growth. “The Bank’s net interest income grew by three percent for the first half of 2024 compared to the same period in 2023. This growth is primarily due to strategic management of the Bank’s investments and improvements in loan asset quality, driven by a careful approach to credit underwriting, effective risk pricing, and managing delinquency levels. Additionally, interest expense has been controlled,” Sands stated.
He added: “The Bank’s non-interest income was flat for the first half of 2024 compared to the same period in 2023, but it has rebounded from a mild decline in the first quarter. The decline in 2023 was due to the unrealized gains from the Bank’s equity investment, which was sold later that year and did not carry forward to 2024. In the second quarter of 2024, the Bank began benefiting from opportunities to expand its transaction-based fee services, generating new income sources that improved total gross revenue.”
Non-interest expenses increased by nine percent, in line with budgetary expectations. The Bank’s cost structure has been affected by rising core operating costs and continued investments in technology infrastructure to support business resilience and optimize technology.
During the quarter, the Board of Directors approved a regular quarterly dividend of $0.03 per share, a 50 percent increase from the $0.02 per share dividend for the same period in 2023. Additionally, on May 7, 2024, the Board approved an extraordinary dividend of $0.02 per share, paid on May 31, 2024, to shareholders of record on May 24, 2024. The total dividends paid in the first half of 2024 matched the approximately $23 million paid in 2023. Shareholders also benefited from a significant increase in share price, which rose from $3.59 on June 30, 2023, to $5.21 on June 30, 2024, an increase of 45 percent.
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