CIBC sees Q1 profit of $147M
Canadian Imperial Bank of Commerce returned to profitability in the first quarter, as the bank said it made $147 million, or 29 cents a share, compared to a loss of $1.46 billion, or $4.39 a share, a year earlier.
The bank's share price closed up 6.08 per cent Thursday to $45.91.
CIBC said it took a loss of $708 million — $483 million after-tax — on its structured credit run-off activities in the first quarter of its current fiscal year.
The bank's big loss in the previous year stemmed from $3.5 billion in structured credit losses.
"While conditions across the worldwide financial services industry remain challenging, we are managing through this global environment by maintaining an emphasis on capital and overall balance sheet strength and continuing to position our core businesses for consistent and sustainable performance," said Gerald T. McCaughey, CIBC's president and CEO, in a release.
CIBC said its charge for bad loans rose to $284 million in the most recent quarter from $172 million in the same quarter of the previous year.