Business

CIBC profit rises, but by less than expected

CIBC reported a higher fourth-quarter profit compared with a year ago, but fell shy of market expectations.
CIBC earned $5.28 billion in profit for the fiscal year as a whole. (Nathan Denette/Canadian Press)

CIBC reported a higher fourth-quarter profit compared with a year ago, but fell shy of market expectations.

The Toronto-based bank said Thursday the profit amounted to $1.27 billion or $2.80 per diluted share for the quarter ended Oct. 31, up from $1.16 billion or $2.59 per diluted share a year ago.

On an adjusted basis, CIBC says it earned $3 per diluted share in the quarter, up from an adjusted profit of $2.81 per diluted share in the same quarter last year.

Analysts on average had expected a profit of $3.04 for the quarter, according to Thomson Reuters Eikon.

Revenue totalled $4.45 billion, up from $4.27 billion in the bank's fourth quarter last year, while provisions for credit losses amounted to $264 million, up from $229 million a year ago.

The results for the quarter came as CIBC's Canadian personal and small banking group earned $668 million in the quarter, up from $551 million a year ago.

Canadian commercial banking and wealth management earned $333 million, up from $287 million, while the U.S. commercial banking and wealth management division earned $131 million, up from $107 million a year ago.

The bank's capital markets division earned $233 million, up from $222 million, while its corporate and other group lost $97 million for the quarter compared with a loss of $3 million a year ago.

For the full year, CIBC said it earned $5.28 billion or $11.65 per diluted share on $17.83 billion in revenue. That compared with a profit of $4.72 billion or $11.24 per diluted share on $16.28 billion in revenue a year earlier.

"In 2018, CIBC delivered record net income driven by strong performance across all of our strategic business units," Victor Dodig, CIBC's president and chief executive, said in a statement.

"We made excellent progress in continuing to embed a client-focused culture, investing in our cross-border platform and enhancing value for our shareholders. Looking forward, we are well positioned to continue to build a client-focused bank that delivers superior shareholder returns."

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