Best banks in Caribbean records major growth

Caribbean region saw remarkable growth in the last financial year with better-performing banks that led to improving growth rates.

Best banks in Caribbean records major growth. Image Credit: Corporate Finance Institute
Best banks in Caribbean records major growth. Image Credit: Corporate Finance Institute

Caribbean: The island nations of the Caribbean region saw remarkable growth in the last financial year with better-performing banks that led to improving growth rates. The data is been disclosed by the major financial authorities which highlighted the efforts of the financial sector of the island nations in the region.

As per the reports, the Caribbean region has collaboratively seen a growth of 39.2 percent, which is an astonishing figure. The growth of the region expanded by approximately 9.8 percent from the previous year’s data. The notable point is that the growth of the Caribbean is more than three times higher than the global growth rate which is around 3.1 percent.

In the region, island nations like Antigua and Barbuda saw growth of 5.7 percent whereas Barbados stood at 4.4 percent expansion. The major reason behind the remarkable numbers is said to be the working system of the financial sector, especially banks of the Caribbean region which laud their solid foundation around the islands.

The latest data mentions Banreservas as the best bank available in the Caribbean region for now. Banreservas is a bank that originates from the Dominican Republic and provides its services on multiple islands around the region. Banreservas resisted an impressive growth in the net income which is 11 percent, where it is maintaining its delinquency rate low as 0.66 percent, which is a historic number.

Along with that, Banreservas has a total deposited amount for 2023 of around 15.1 billion dollars, which increased by one billion dollars from the numbers of 2022. Currently, Banreservas as the best among all banks in the Caribbean holds a market share of 38 percent.

Other than Banreservas, Scotiabank dominated the banking sector in the region while giving top-tier services. Scotiabank is based in Canada which is available in the Caribbean and worked exceptionally well in the nations of Turks and Caicos, Trinidad and Tobago, Barbados, Jamaica, and Bahamas.

On the island of Bahamas, Scotiabank recorded an elevation in its profitability of around 46 percent last year as compared to 2022 data. This also marked the highest peak bank touched in the past 15 years of history. Similarly, in Barbados, the bank registered remarkable profits while focusing on its digit services. The approach helped the bank to grow 244 thousand transactions while YoY increased by 57 percent, which is double in numbers.

Scotiabank in Jamaica recorded a net income of 17.3 billion dollars in the last fiscal year which marked an increase of 6.9 billion dollars from the last data. The growth was nearly 67 percent high from previous calculations. The focus on digital platforms also helped the bank to stand extraordinary in Trinidad and Tobago.

In Trinidad and Tobago, the bank conceived a growth of seven percent in YoY, a 44.7 percent operational efficiency ratio, and nearly fifteen percent ROE. Meanwhile, the notable performance of the bank was in Turks and Caicos where Scotiabank recorded 138 percent growth in ROE and 203 percent growth in net profit.

The other well-known brand in the sector, FirstBank marked its solid presence in Puerto Rico and the US Virgin Islands. The bank has continued providing its top-notch service to the local residents of the island nations while recording a positive growth rate. It is said that the bank also took advantage of active tourism on the island which led their loan portfolio to growth of 11.8 percent YoY.

After all in Bermuda and the Cayman Islands of the Caribbean region, Butterfield Bank took edge over other banks. In the digital era, Butterfield Bank also focused on digital inclusion which led to positive results. The bank recorded a 58.1 percent betterment in efficiency ratio and 24.2 percent ROE. Currently, the bank is standing at 367 million dollars in net interest income on the islands and 212 million dollars in non-interest income.