Canadian Imperial Bank of Commerce’s (CM) net income declined 4% on a year-over-year
basis to $1.67 billion in its fiscal third quarter.
The bank reported a rise in expenses due primarily to its purchase of the Costco credit card
portfolio.
However, CIBC said its adjusted earnings per share in the quarter came in at $1.85, which was
better than the average analyst estimate of $1.83.
As with all Canadian banks, CIBC said it put aside more money for loan loss provisions, citing
“an unfavourable change in our economic outlook.”
However, the $243 million that CIBC put aside to cover bad loans in the latest quarter was less
than the $303 million it set aside in the previous quarter.
Profit at CIBC's Canadian personal and business banking unit declined 7% year-over-year to
$595 million. It blamed the drop in profits on $200 million that was booked as provisions for
credit losses, as well as expenses that climbed 17% on an annualized basis to $1.31 billion.
The lender added that its net income from capital markets activities fell nearly 10% year-over-
year to $447 million.
CIBC’s loans grew substantially in the three-month period ended July 31, with its residential
mortgages growing 9% to $262.52 billion.
CIBC’s stock is down 12% this year and trading at $65.51 a share.
