CIBC profit drops to $836M
CIBC made $836 million in net income in its fiscal fourth quarter, down from $852 million in the same period last year, with one-time items offsetting growth at the bank's main operations.
The Toronto-based bank also reported diluted earnings per share of $2.05 for the three months ended Oct. 31, up from $2.02 in the same quarter of 2012.
After adjusting for one-time items, earnings were $2.22 per share, up 8.8 per cent from $2.04 in the fourth quarter of 2012 while revenue rose to $3.2 billion from $3.16 billion.
The adjusted earnings were ahead of analyst estimates while net income and revenue fell short, according to data compiled by Thomson Reuters.
Analysts were looking for $2.15 per share of adjusted earnings, $2.13 per share of net income and $3.26 billion of revenue.
CIBC says its results were impacted in part by a $39 million restructuring charge relating to FirstCaribbean International Bank and a $35 million impairment of an equity position tied to its U.S. leveraged finance portfolio.
The bank's retail and business banking division earned $610 million in net income during the quarter compared to $569 million in the same quarter a year ago on total revenue of $2.1 billion.
Net income in the wealth management sector for the quarter was $104 million, up from $84 million during the same quarter a year ago last year, while wholesale banking net income edged higher at $210 million.
For the entire fiscal year, CIBC reports adjusted net income of $3.6 billion and $8.23 in diluted earnings per share.
"CIBC reported another year of solid progress in 2013," said president and CEO Gerry McCaughey.
"Our results reflect the strength of our client-focused strategy."
McCaughey added that CIBC `has the right strategy to deliver value`in a challenging environment and will continue to focus on "cultivating deeper relationships with our clients and pursing strategic growth" in 2014
CIBC also declared a dividend of 96 cents per share on common shares for the quarter ending Jan. 31, 2014.