NASSAU, BAHAMAS — Commonwealth Bank recorded a consolidated net profit of $49.4 million for the nine months ended September 30, 2024, compared to $50.3 million for the same period in the prior year.
William B. Sands, the BISX-listed lender’s Executive Chairman, reporting on the bank’s performance for the period, noted that the profit reflects stable performance as The Bahamas’ economy continues to normalize following the rebound of the previous two years.
“The Bank’s net interest income grew mildly by one percent for the nine months of 2024 compared to the same period in 2023, as we continue to control interest expense and accrue the benefits from the growth of the Bank’s interest-bearing loans receivable and investment portfolios. We remain focused on a posture in credit underwriting to manage growth safely, price risk effectively, and manage delinquency levels in the Bank’s loan book,” noted Sands.
The Bank’s year-to-date non-interest income as of September 30, 2024, grew by eight percent compared to the same period in 2023. This growth is attributed to the expansion of the Bank’s credit life insurance business, which correlates with the growth of its loan book, and the introduction of merchant-acquiring services for commercial customers. The latter represents a new revenue-generating stream that is expected to contribute positively to the Bank’s total revenue.
According to Sands, the Bank’s year-to-date non-interest expense increased by five percent compared to the prior year, slightly exceeding budgetary expectations. Higher non-controllable operating costs, including increased national insurance contributions, deposit insurance premiums, and utility costs, significantly impacted the cost structure.
During the quarter, the Board of Directors approved a regular quarterly dividend of $0.03 per share. Total dividends paid through September 30, 2024, matched the $32 million paid in 2023. Shareholders also benefited from a 26 percent increase in the Bank’s share price, which rose to $5.03 on September 30, 2024, compared to $4.00 a year earlier.
Loading ...
