CIBC third-quarter profit beats expectations

CIBC beat expectations as it reported its third-quarter profit rose nearly 50 per cent compared with a year ago.

The bank said Thursday it earned $1.73 billion or $3.76 per diluted share for the quarter ended July 31, up from $1.17 billion or $2.55 per diluted share a year earlier.

Revenue for the quarter totalled $5.06 billion, up from $4.71 billion.

The increase came as CIBC reported a $99-million reversal of credit losses for its latest quarter compared with a provision for credit losses of $525 million in the same quarter last year.

On an adjusted basis, CIBC says it earned $3.93 per diluted share, up from an adjusted profit of $2.71 per diluted share a year earlier.

Analysts on average had expected the bank to earn $3.41 per share, according to financial market data firm Refinitiv.

“This quarter’s record top-line revenue and earnings per share underscore the breadth and quality of the growth we have across all of our key business units, as we continue to successfully navigate an uncertain environment by staying focused on our clients and on the well-being of our team,” CIBC CEO Victor Dodig said in a statement.

“This quarter we continued to make strategic investments in our future growth as we have throughout the pandemic.”

CIBC said its Canadian personal and business banking earned $642 million for the third quarter, up from $457 million a year ago, helped by lower provisions for credit losses and higher revenue, partially offset by higher expenses.

Canadian commercial banking and wealth management reported a profit of $470 million for the quarter compared with $320 million in the same quarter last year, while CIBC’s U.S. commercial banking and wealth management operations earned $266 million, up from a profit of $60 million a year ago.

CIBC’s capital markets business reported net income of $491 million for the third quarter, up from $443 million in the same quarter last year.