By Adriano Marchese
Canadian Imperial Bank of Commerce on Thursday reported a 47% rise in third-quarter profit, benefiting from a contribution from its U.S. commercial banking and wealth management segment.
For the three months ended July 31, the Toronto-based banking and financial services company said earnings per share were 3.76 Canadian dollars ($2.99), up from C$2.55 in the comparable quarter a year ago.
Net income was at C$1.73 billion, compared with C$1.17 billion a year ago.
Notably, CIBC’s U.S. commercial banking and wealth management segment reported a C$206 million rise in income to C$266 million, a more-than-quadrupled increase from the prior year quarter.
Adjusted earnings were C$3.93 a share, beating analyst expectations of C$3.40 a share taken from FactSet.
Total revenue rose to C$5.06 billion from C$4.93 billion.
Return on shareholders’ equity was 17.1% compared with 12.1%, while provision for credit losses was a reversal of C$99 million, compared with a provision for credit losses of C$525 million.
CIBC credited the reversal on performing loans that were recognized across all strategic business units in the current quarter as economic outlook improved, while a year ago the provision for credit losses was due to more unfavorable outlooks caused by the Covid-19 pandemic.
The company said that common equity tier 1 ratio edged up to 12.3% from 11.8%.
CIBC’s board of directors declared a dividend of C$1.46 a share for the quarter, payable on Oct. 28.
Write to Adriano Marchese at firstname.lastname@example.org
(END) Dow Jones Newswires
August 26, 2021 06:39 ET (10:39 GMT)
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