CIBC profit misses expectations on higher loan loss provisions
Canadian Imperial Bank of Commerce reported quarterly profit that fell short of analysts’ estimates on Thursday, hurt by higher provision for bad loans and slower growth at its domestic banking business.
Net income at CIBC’s Canadian retail banking business, which provides loans and other financial products to small businesses and individual consumers across Canada, fell 10 per cent to $601 million from a year earlier.
The bank’s capital markets unit reported net income of $226 million, down 3 per cent from a year ago.
Total provisions for loan losses, or the money a bank sets aside to cover unpaid loans, jumped 52 per cent in the fourth quarter ended Oct. 31.
Other Canadian big banks, including Royal Bank of Canada , Bank of Montreal and Bank of Nova Scotia , also reported higher provisions in the reported quarter.
Net income attributable to common shareholders, excluding one-off items, fell to $1.31 billion, or $2.84 per share the quarter, from $1.36 billion, or $3.00 per share a year ago.