By Ed Frankl
Canadian Imperial Bank of Commerce said Thursday that second-quarter earnings fell as profits in its domestic personal-banking segment dropped on year on higher provisions.
The Canadian banking and financial-services company said earnings per share were 1.62 Canadian dollars ($1.26) in the three months to April 30, down from C$1.78 in the same quarter a year ago.
Net income was C$1.52 billion, compared with C$1.65 billion a year ago. According to FactSet, analysts were expecting C$1.61 billion.
Revenue rose slightly to C$5.50 billion from C$4.93 billion. Analysts expected revenue to be C$5.30 billion.
The bank's Canadian Personal and Business Banking unit reported net income of C$496 million, down 18% on year, primarily due to a higher provision for credit losses and higher expenses, though partially offset by higher revenue, it said.
Results were also hit by integration costs of C$106 million from the acquisition of Canadian Costo and C$45 million in legal provisions.
The Toronto-based company's provision for credit losses, an estimation of potential losses, jumped to C$303 million, up from C$43 million in the same quarter last year.
Common equity tier 1 ratio--a measure of a bank's financial strength-- was 11.7%, from 12.4% in 2Q 2021.
CIBC's board declared a dividend of C$0.83 a share for the period ending July 31, 2021.
Write to Ed Frankl at email@example.com
(END) Dow Jones Newswires
May 26, 2022 06:08 ET (10:08 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.