CIBC profits fall in second quarter

The bank's Q2 earnings came in lower than analysts had expected

CIBC profits fall in second quarter

Canadian Imperial Bank of Commerce (CIBC) has revealed that its fiscal second-quarter profit fell over last year, with Q2 earnings coming in at $1.52 billion compared with $1.65 billion for the same three months in 2021.

That result was lower than analysts had anticipated, as adjusted earnings per share for the quarter were $1.77 against an anticipated $1.80 per share.

In Canadian Personal and Business Banking, the bank’s net income was down 18% year over year, coming in at $496 million. CIBC said that result was due to a higher provision for credit losses and higher expenses.

On the commercial banking and wealth management side, the bank’s net income of $480 million represented a 20% increase over Q2 2021 in Canada, with a $36 million decrease to $180 million recorded in the US.

Overall costs were recorded at $3.1 billion, an increase of nearly 13% attributed to business investment, higher performance-based pay and inflationary pressures.

CIBC’s CEO Victor G. Dodig said the bank had delivered “well-diversified” growth in the second quarter, reiterating its commitment to investment in client experience and attracting and retaining top talent.