CIBC reports rise in third-quarter profit on lower loan loss provisions

Canadian Imperial Bank of Commerce reported a rise in third-quarter profit on Thursday, as the lender set aside smaller funds to cover potential loan losses.

 

Provision for credit losses was $483-million in the quarter, down $253-million compared with a year earlier.

 

Credit trends have been improving over the past few quarters in CIBC’s U.S. office portfolio.

 

The bank set aside lower provisions in its commercial banking segment in the U.S., a market where it was previously hit by its exposure to office real estate.

CIBC’s U.S. commercial banking and wealth management business reported a net income of $215-million in the quarter, up 187 per cent compared to last year.

 

The bank’s adjusted net income rose to $1.90-billion or $1.93 per share, in the three months ended July 31, from $1.48-billion or $1.52 per share a year earlier.

 

 

 

This article was first reported by The Globe and Mail