CIBC bank reports drop in third quarter profit as total revenue increases

CIBC says it earned $1.67 billion in its third quarter, down from $1.73 billion in the same quarter last year.

The bank says its net income amounted to $1.78 per diluted share for the quarter ended July 31, down from $1.88 per diluted share a year earlier.

Revenue totalled $5.57 billion, up from $5.06 billion in the same quarter last year.

Provisions for credit losses totalled $243 million compared with a reversal of credit losses that amounted to $99 million in its third quarter last year.

On an adjusted basis, CIBC says it earned $1.85 per diluted share compared with an adjusted profit of $1.96 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.83 per diluted share, according to financial markets data firm Refinitiv.

“As the economic environment continues to evolve, we remain focused on delivering shareholder value by taking a disciplined approach to capital allocation to execute our strategy, focusing on key client segments, further enhancing client experience, and investing in future differentiators for our bank,” CIBC chief executive Victor Dodig said in a statement.

CIBC said its Canadian personal and business banking business earned $595 million, from $642 million in the same quarter last year, while Canadian commercial banking and wealth management earned $484 million, up from $470 million.

The bank’s U.S. commercial banking and wealth management arm earned $193 million, down from $266 million a year ago.

CIBC’s capital markets business earned $447 million, down from $491 million in the same quarter last year.

by The Canadian Press