(Bloomberg) -- Canadian Imperial Bank of Commerce’s plan to ramp up investments in its workforce took a bite out of fiscal second-quarter profit. 

Non-interest expenses rose 13% from a year earlier to C$3.11 billion ($2.43 billion) in the three months through April, the Toronto-based company said Thursday. Overall profit trailed projections.  

CIBC Chief Executive Officer Victor Dodig has said the bank will invest in technology and front-line, revenue-generating employees this year to help spur growth. The plan comes as a historically tight Canadian labor market contributes to rising wages. In the second quarter, the bank said expenses were driven by spending on those strategic initiatives and employee compensation. 

“We are continuing to: invest to enhance client experience and attract and deepen relationships; attract and retain top talent; generate high quality returns for our shareholders; and, create positive change for our communities,” Dodig said in the statement.

CIBC shares have fallen 4.9% this year, compared with a 4.1% drop for the S&P/TSX Commercial Banks Index. 

Also in the earnings release: 

• Net income fell 7.8% to C$1.52 billion, or C$1.62 a share.
• Excluding some items, profit was C$1.77 a share. Analysts estimated C$1.78, on average.
• CIBC set aside C$303 million in provisions for loan losses. Analysts estimated the bank would set aside C$142.7 million.

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