World News – CA – CIBC Beats As Capital Markets Earns Rise And Risk Provisioning Falls – BNN Bloomberg


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1h ago

From Noah Zivitz

The Canadian Imperial Bank of Commerce and its colleagues reported a significant increase in earnings expectations for the fourth quarter on Thursday as credit quality improved and the capital markets segment posted double-digit growth.

CIBC announced its net earnings for the three months ending October. 31 totaled $ 1. 02 billion, 15 percent less than last year. A number of one-time items weighed on the bank’s results for the quarter, including an impairment charge of 220 million on goodwill. USD, which was tied to a majority stake in CIBC FirstCaribbean.

CIBC allocated $ 291 million for loans that could go bad in the quarter, a significant decrease from the $ 525 million provision posted in the previous quarter.

The largest division of the bank ???? Canadian Private and Commercial Banking ???? earned $ 634 million in the final quarter of fiscal year. This was a slight increase over the previous year and a 25 percent increase in profitability over the third fiscal quarter.

Like the other Big Six banks reporting earlier this week, CIBC benefited from significant growth in its Bay Street operations as capital markets earnings rose 17 percent year over year to $ 267 million.

The bank’s wealth management business also posted earnings growth for the quarter, while the burgeoning U. . S.. . The operating business saw a decrease in net income compared to the last quarter of 2019, which CIBC attributed to higher loan loss provisions and the impact of lower interest rates. Sequentially, however, the division’s profit more than doubled to $ 131 million.

« We delivered solid financial performance in fiscal 2020 amid a global pandemic and evolving geopolitical environment, » said Victor Dodig, CEO of CIBC, in a press release.

« At the same time, we have taken steps to position our bank for the future, including strategic investments in our people, processes and platforms and measures to increase our efficiency, » he added. « As FY 2021 begins, our strong financial position will allow us to continue our customer-centric strategy to grow and generate value for all of our stakeholders. « 

In a separate press release, CIBC announced Thursday that former Treasury Secretary John Manley was stepping down from the bank’s board of directors in April after 16 years of service, including six as chairman. Katharine Stevenson will replace him as Chairwoman when she is elected at the next annual meeting of the Bank. Stevenson is currently a director at Open Text Corp.. . and Capital Power Corp. .

Canadian Imperial Commercial Bank, Toronto-Dominion Bank, TD Bank, N. . ONE.

World News – CA – CIBC beats when capital market profits rise and loan loss provisions fall – BNN Bloomberg
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