After more than three years, CIBC Caribbean wrapped up its segment of a groupwide efficiency drive last month with the successful transfer of its Saint Maarten operations to Orco Bank. The divestment drive began in October 2021; since then, CIBC has sold operations in Aruba, Curaçao, Dominica, Grenada, and St. Vincent and the Grenadines, as well.
“Our country divestment program is now over,” said CIBC Caribbean’s CEO Mark St. Hill, in a statement. “These were some very complex transactions, and it is a credit to [CIBC’s team’s and buyer banks’] expertise and professionalism that we were able to complete all of them within the timeframe that we set out and with relative ease.”
Operating as CIBC FirstCaribbean in the Dutch Caribbean, the bank’s reduced regional footprint has resulted in a modern, slimmed-down bank, St. Hill added. Changes included centralizing key functions, including digital sales through LoanStore; launching an agile work plan; and revamping its call centers into contact centers.
Parent CIBC has been refocusing on its core markets to accelerate growth. The ownership changes are subject to local banking regulatory approval, which is expected in the forthcoming months.
“Acquiring CIBC FirstCaribbean’s banking assets presents an excellent opportunity for Orco Bank,” says Edward Pietersz, Orco managing director and CEO. “With an expanded reach, we are well positioned to fulfill our mission of being the preferred partner, offering innovative, customer-driven solutions that enable financial freedom in a responsible and sustainable manner while creating shared value for our communities.”
A similar effort to de-risk the region by National Commercial Bank Jamaica with the sale of its Cayman Islands subsidiary NCB Cayman has fallen through. The transaction failed to be completed within the agreed timeframe, parent NCB Financial Group revealed. But rumors persist that other international banks are considering selling some of their Caribbean assets due to poor performance and high compliance costs in the region.