The best banks in the world 2024: the Caribbean

5 Min Read

Nearshoring, the boom in tourism and increased remittances will contribute to growth in 2023.

According to International Monetary Fund estimates, the region (excluding Guyana, which saw an eye-popping 39.2% growth this year) grew by 9.8%, exceeding the global growth rate of 3.1%.

Among the leading economies in the region, solid GDP activity of 5.7% in Antigua and Barbuda and growth of 4.4% in Barbados have paved the way for robust activity in the region.

The hot regional economic activity boosted profitability and provided a solid foundation for the region’s financial sector. This was mainly due to increased loan portfolios, higher interest charges and improved default rates in the commercial lending sector.

Against this background, Bank reserves takes home the award for the Best Bank in the Caribbean and in its home country, the Dominican Republic, for the second year in a row. Taking advantage of the favorable year to post an impressive 11% year-on-year net income growth, the Dominican Republic-based giant maintained its delinquency rate at an all-time low of 0.66%.

The bank’s total deposits reached $15.1 billion in 2023, surpassing a whopping $1 billion in 2022. This achievement positioned the bank as a leader in the Dominican banking system, with a 38% market share.

In addition, Banreservas made history by becoming the first bank in the Dominican Republic to reach a historic benchmark in its lending portfolio of more than $8.7 billion. As a result, the bank consolidated its position in its home market by capturing 36.9% of the market share in assets, which totaled $19.6 billion.

See also  A look at BAWAG Group's retail banking roadmap

Based in Canada Scotiabank dominated the year in the Caribbean Islands, taking home five awards: for the Bahamas, Barbados, Jamaica, Trinidad and Tobago, and for Turks and Caicos.

In the Bahamas, the bank’s profitability reached a 15-year high, with profits up nearly 46% from 2022. The trend was primarily driven by a 37 basis points year-over-year increase in overall lending market share and an increase in the total market share in the credit market of 49 basis points year-on-year. bp growth in total deposit market share.

Scotiabank Barbados focused on improving digital inclusion by strengthening its digital offering. As a result, the bank’s digital adoption grew to 244,000 transactions, an increase of 57% year-on-year. On the financial side, these initiatives led to year-over-year profitability almost doubling, with return on equity (ROE) increasing by 9%.

In Jamaica, the Canadian bank’s strong financial performance was driven by growth across all core businesses, resulting in an impressive net income of $17.3 billion for the fiscal year ended October 31, 2023. This represents an increase of $6.9 billion in total gain, 67%. compared to the previous year.

Focusing on digital offerings also proved to be a winning strategy in Trinidad & Tobago, where the bank achieved 7% year-on-year growth in its loan portfolio, an ROE of 14.95% and an operating efficiency ratio of 44.7%.

The Canadian giant’s best performance was in Turks and Caicos. Boosted by massive lending activity and a solid default rate, the bank achieved a stellar ROE of 138% and a 203% increase in net profit, to $27 million.

See also  Japan launches banknotes with hologram portraits by Reuters

First Bank took home two awards for Puerto Rico and the U.S. Virgin Islands. In the former, the bank continues to leverage its 2020 acquisition of Santander’s $5.5 billion local assets to deepen its leadership position. In the latter case, the bank took advantage of the strong increase in tourism activity to increase its loan portfolio by 11.8% on an annual basis.

Our winner from the Cayman Islands and Bermuda, Butterfield Bank, focused on digital inclusion to obtain impressive statistics for its customers. The bank posted a solid ROE of 24.2% and a core efficiency ratio of 58.1%. As a result, the bank’s net interest income reached a staggering $367 million and non-interest income reached $212 million. Butterfield also benefited from the Credit Suisse fiasco by acquiring its Trust business in the Cayman Islands.

Best banks in the Caribbean
Bahamas Scotiabank
Barbados Scotiabank Barbados
Bermuda Butterfield
Cayman Islands Butterfield Bank
Dominican Republic BanReservas
Jamaica Scotiabank Jamaica
Puerto Rico First Bank
Trinidad and Tobago Scotiabank Trinidad & Tobago
Turks and Caicos Islands Scotiabank Turks and Caicos
American virgin islands First Bank
Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *