CIBC delivers flat profit in second quarter
Canadian Imperial Bank of Commerce (CM.TO) opened a highly-anticipated earnings season with a flat second-quarter profit that was held back by weakness in the lender's core domestic division.
CIBC's net profit in the three-month period ending Apr. 30 inched up two per cent year-over-year to $1.35 billion. On an adjusted basis, the bank earned $2.97 per share. Analysts, on average, were expecting $2.99.
Adjusted earnings in CIBC's core Canadian personal and small banking unit slipped three per cent to $571 million, with the bank pointing to an uptick in expenses and credit loss provisions. According to a supplemental release, CIBC set aside $229 million for loans that could go bad in that division, compared to $203 million a year earlier.
Profit rose in the bank's other main divisions in the last quarter, including double-digit gains in U.S. banking and capital markets.
"We delivered solid earnings this quarter, reflecting the strength of our increasingly diversified business," said CEO Victor Dodig in a release.
CIBC also announced Wednesday it intends to repurchase up to two per cent of its common shares over the next year.