TORONTO — CIBC reported its third-quarter profit fell compared with a year ago as its provisions for bad loans rose due to the impact of the COVID-19 pandemic and continued pressure on oil prices, but the bank still topped expectations.
CIBC said Thursday it earned $1.17 billion or $2.55 per diluted share for the quarter ended July 31, down from nearly $1.4 billion or $3.06 per diluted share a year earlier.
Revenue totalled nearly $4.71 billion, down from $4.73 billion in the same quarter last year.
Provisions for credit losses were $525 million, up from $291 million a year ago, but down from $1.41 billion in the second quarter.
On an adjusted basis, CIBC says it earned $2.71 per diluted share in its third quarter, down from an adjusted profit of $3.10 per diluted share a year ago.
Analysts on average had expected an adjusted profit of $2.15 per share, according to financial markets data firm Refinitiv.
CIBC chief executive Victor Dodig said the bank delivered solid results for the quarter.
“The continued execution of our strategy and ongoing investments in our business, as well as disciplined expense management, have contributed to our resilience and positioned us well for the evolving macroeconomic environment,” Dodig said in a statement.
CIBC’s Canadian personal and business banking business earned $508 million in the quarter, down from $658 million in the same quarter last year.
The bank’s Canadian commercial banking and wealth management business earned $320 million, down from $344 million a year ago, while U.S. commercial banking and wealth management earned $62 million, down from $173 million last year.
Capital markets earned $392 million, up from $235 million a year ago.
This report by The Canadian Press was first published Aug. 27, 2020.
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