NASSAU, BAHAMAS – Royal Bank of Canada’s (RBC) BISX-listed mortgage arm, RBC FINCO, reported a net income of $31.7 million for the fiscal year ended October 31, 2024, reflecting a 50.3 percent increase compared to the previous fiscal year.
Chris Duggan, Chairman of Finance Corporation of Bahamas Limited, is his report on the bank’s full-year financial statements, noting that the increase was primarily driven by the release of provisions for credit losses, though it was partially offset by lower revenue and higher operating costs.
“This past year, we experienced a 2.3 percent decrease in loans and advances to customers, totaling $605.4 million. This reduction was mainly due to challenges in credit origination and the write-off of non-performing loans. However, we are pleased to report that our strategic efforts to address this decline have made a positive impact,” Duggan explained.
He added, “A key focus has been empowering our Relationship Managers to actively build their portfolios through targeted acquisition activities with developers and realtors. Additionally, we have hosted client advisory events and leveraged our network to generate new business opportunities. As a result of these initiatives, the declining trend in our loan portfolio has shown signs of stabilization. While there is still work to be done, we are optimistic about the progress made thus far and remain committed to further strengthening our loan portfolio in FY2025.”
Duggan also highlighted that despite the challenges posed by non-performing loans, the bank continues to maintain a strong capital position well above regulatory guidelines, with adequate provisions for any potential negative impacts.
“We remain profitable, and there are no liquidity issues. Considering these factors, the Board of Directors declared quarterly dividends totaling $0.75 per share throughout FY 2024. The Board reviews dividend payments each quarter and will continue to monitor the economy, the mortgage portfolio, and overall performance to ensure the prudent financial management of RBC FINCO,” Duggan concluded.
