Analyst: Banks doing well in the Caribbean
Friday, September 01 2017 @ 03:59 PM AST
Contributed by: AleemKhan
Q3 2017 Earnings Conference Call
August 29, 2017
Our next question comes from Robert Sedran with CIBC World Markets.
Hi. Good morning. We focus a lot of attention in the international side and I think rightly so on LatAm, but the last couple of quarters in the Caribbean seems like – and I’m curious if something is going on. The results, earnings are better and loan losses have been down. Is that part of the bank – we’ve seen it in some of your peers as well looking better also. Is there something going on in the Caribbean that we should be paying attention to or is this just the normal quarterly volatility?
I would say this is a consistent improvement on our Caribbean operation even when the growth levels are more moderate, a lot of progress has been done in structural cost transformation, in operational efficiency, in operating this bank with a single operating platform and single system and creating hubs around the Caribbean to provide services for all of the country. So definitely it’s a good – I think it’s good to identify that the Caribbean is an important contributor to International Banking, stable and consistently improving.
You think there’s a top line story to be told there, Nacho, is it largely an operating efficiency story?
Well, I think overall I think it’s a very important expense management. But I would say overall we are very – have a very important franchise in the Caribbean. So volume growth are good relative to the market and PCLs are stable. We are growing within our risk appetite in all these countries. So overall I think it’s a good story.