CIBC quarterly profit misses estimates on higher loan loss provisions
Reuters
Published Dec 05, 2019 06:21
CIBC quarterly profit misses estimates on higher loan loss provisions
(Reuters) - Canadian Imperial Bank of Commerce (TO:CM) reported quarterly profit that fell short of analysts' estimates on Thursday, hurt by higher provision for bad loans and slower growth at its domestic banking business.
Net income at CIBC's Canadian retail banking business, which provides loans and other financial products to small businesses and individual consumers across Canada, fell 10% to C$601 million ($451.85 million) from a year earlier.
The bank's capital markets unit reported net income of $226 million, down 3% from a year ago.
Total provisions for loan losses, or the money a bank sets aside to cover unpaid loans, jumped 52% in the fourth quarter ended Oct. 31.
Other Canadian big banks, including Royal Bank of Canada (TO:RY), Bank of Montreal (TO:BMO) and Bank of Nova Scotia (TO:BNS), also reported higher provisions in the reported quarter.
Net income attributable to common shareholders, excluding one-off items, fell to C$1.31 billion, or C$2.84 per share the quarter, from C$1.36 billion, or C$3.00 per share a year ago.
Analysts on average had expected C$3.06 per share, according to Refinitiv IBES data.
($1 = 1.3301 Canadian dollars)
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Written By: Reuters
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