The bank has released its financial results for Q3
Canadian Imperial Bank of Commerce (CIBC) saw its profits decline in Q3 compared with the same quarter in 2021 but edged out average analyst projections on its adjusted earnings per share.
The bank recorded profits of $1.67 billion in the third quarter, down from $1.73 billion in Q3 2021, with adjusted earnings per share coming in at $1.85 – slightly ahead of average analyst expectations of $1.83.
The bank put away $243 million in provisions for possible credit losses due to a downward turn in its economic outlook and “unfavourable credit migration,” with personal and business banking profits falling on a yearly basis, by 7% to $595 million.
Expenses on its Canadian Costco credit card portfolio were also attributed by the bank as a reason for higher overall expenses, which were up by 17% year over year (to $1.31 billion) while capital market activity income was down by 9% compared with the same period last year, at $447 million.
CIBC’s president and CEO Victor Dodig said the company had witnessed “strong growth” across its business amidst a changing economic climate.
“As the economic environment continues to evolve, we remain focused on delivering shareholder value by taking a disciplined approach to capital allocation to execute our strategy, focusing on key client segments, further enhancing client experience, and investing in future differentiators for our bank,” Dodig said.
“Our highly-connected and purpose-driven team will continue to move our bank forward as we create positive change and help make ambitions a reality.”