Canadian Imperial Bank of Commerce 2Q Profit Rises, Revenue Meets Views

By Adriano Marchese

Canadian Imperial Bank of Commerce on Thursday reported an increase in fiscal second-quarter profit and revenue growth in line with analyst expectations, propped up by a strong performance from its Canadian personal and commercial unit.

The Canadian financial institution reported an 11% rise in net income for the period ended April 30, reaching 1.69 billion Canadian dollars ($1.24 billion), or C$1.76 a share, compared with C$1.65 billion, or C$1.62 a share, a year earlier.

On an adjusted basis, earnings fell 4% C$1.70 a share. But analysts polled on FactSet were expecting a greater decline in the period, forecasting a fall to C$1.63 a share.

Revenue rose to C$5.7 billion from C$5.38 billion, in line with analyst expectations.

All of CIBC's main segments were lower with the exception of its Canadian personal and business banking which saw an increase of 28% to C$637 million in the quarter, primarily due to higher revenue and a reduced provision for credit losses.

In the quarter, provision for credit losses was C$135 million higher at C$438 million, compared with a year ago.

Common equity tier 1, which measures the bank's core equity capital compared with its risky assets like loans and mortgages, inched up to 11.9% from 11.7%.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 25, 2023 06:39 ET (10:39 GMT)

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