Core Viewpoint - CIBC Caribbean Bank Jamaica Ltd reported a significant decline in profit for the fiscal year ending October 2025, largely due to the impact of Hurricane Melissa, with profits dropping to $45.9 million, a decrease of four-fifths compared to the previous year [1] Financial Performance - Earnings per share fell to $0.05 from $0.54, resulting in a comprehensive loss of $113 million when accounting for remeasurement losses on retirement benefit plans [2] - Operating income increased to $11.3 billion, a rise of 4.4% from $10.8 billion a year earlier, despite the overall decline in profit [4] - Credit loss expenses surged by 62% to $555.4 million from $343.6 million, indicating higher provisions for potential defaults [4] Credit Quality and Risk Assessment - The bank anticipates that the credit quality of its borrowers could worsen threefold, although it would still remain below the regulated ceiling for problem loans set by the Bank of Jamaica [1] - The Early Warning List, which identifies vulnerable customer profiles, saw a significant increase, with loans on the list rising to $1.84 billion from $528.9 million in 2024 [6] - Non-performing loans (NPLs) increased by 51% to $1.43 billion from $947.4 million, representing 1.2% of the bank's total loan book of $119.8 billion [7] Impact of Hurricane Melissa - Hurricane Melissa made landfall on October 28, 2025, causing physical damage to branches and temporary operational disruptions, with full branch operations resuming by November 12 [8] - A preliminary damage assessment indicated "no material damage" to the bank's network, and no provisions for asset write-downs or repairs were required as of October 31 [9] Balance Sheet Overview - Total assets grew by 9.6% to $201.4 billion from $183.7 billion, driven by an increase in loans and advances [11] - Customer deposits expanded by 15.5% to $165.3 billion, while overall capital slightly decreased to $19.6 billion from $19.7 billion a year earlier [11]