The deal with Bank of N.T. Butterfield & Son creates a roughly $29 billion institution, as CIBC redirects capital toward North American growth
CIBC has agreed to sell its 91.7% stake in CIBC Caribbean to Bank of N.T. Butterfield & Son for approximately $1.6 billion, comprising $1 billion in cash and 52.1 million Butterfield shares currently valued at around $645 million. The combined entity will have roughly $29 billion in assets.
The sale forms part of a broader move by CIBC to redirect capital toward growth opportunities in North America. Alongside the announcement, the bank unveiled a new share buyback program as part of its quarterly results, which showed a 23% increase in net income and an improvement in return on equity compared with the same period last year.