Last Updated on October 24, 2023 by Steve Randall
CIBC is the second of Canada’s big banks to announce third quarter earnings with an increase year-over-year but a dip from the second quarter due to costs relating to its acquisition of PrivateBank.
The lender revealed adjusted net income of $1.16 billion compared with $1.07 billion a year earlier; and adjusted earnings of $2.77 compared with $2.67 a year ago.
However, reported diluted earnings per share were down to $2.60 from $3.61 in the second quarter as the bank faced increased costs from its acquisition of The PrivateBank, which is expected to deliver strong profits to the group.
CIBC’s Canadian retail and business banking unit saw net income rise 8% ($53 million) year-over-year to $719 million.
Provision for losses was increased by 3% ($6 million) to $209 million mainly due to losses in its pre-existing U.S. real estate finance portfolio.
While the bank is not expecting any significant issues resulting from its mortgage book, CEO Victor Dodig told analysts that a moderation of loans would be expected as interest rates rise along with tighter regulation such as the OSFI proposals announced last month.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
