Canadian Imperial Bank of Commerce (CM) has reported that its fiscal first-quarter profit declined 77% from a year ago to $432 million.
The Toronto-based bank reported an overall net profit of $432 million, or $0.39 per share, compared with a profit of $1.87 billion, or $2.01 per share, a year earlier.
CIBC said it experienced a 14% decline in its personal and business banking unit during the quarter that was partially offset by a 13% increase in its capital markets division.
The bank also recorded a pre-tax charge of $1.17 billion through January 31 of this year.
The bulk of the charges stem from the settlement of a lawsuit CIBC faced from private-equity firm Cerberus Capital Management that dated back to the 2008 financial crisis. CIBC said it would pay $770 million to resolve the legal matter.
CIBC said it also set aside $295 million for credit losses in the quarter, which was up 34% from $220 million set aside a year ago.
CIBC kicked off the earnings of Canada’s big banks, with other lenders scheduled to report their results in the coming week.
CIBC’s stock is down 21% over the last 12 months and trading at $61.23 per share.
