The banking giant became the first of the Big Six to reveal its Q1 financial results for 2023
Canadian Imperial Bank of Commerce (CIBC) reported a drop in its first-quarter profits for 2023, driven by a big increase in legal provisions and lower earnings in its personal and business banking division.
The banking giant took a 14% net income hit in personal and business banking, down $98 million over the same time last year to $589 million, while it saw an $844 million after-tax increase in legal provisions and a $545 million income tax charge linked to last year’s federal budget.
That contributed to an overall net profit of $432 million ($0.39 per share), a significant drop from the $1.87 million ($2.01 per share) earnings it netted at the same time last year.
CIBC’s commercial banking and wealth management division saw profits inch upwards by 2% to $469 million, although on the US side net income was down $25 million from Q1 2022 in a result it attributed to a higher provision for credit losses and higher non-interest expenses.
Meanwhile, the capital markets side saw profits 13% higher than the year before (up $69 million to $612 million).
Commenting on the results, CIBC president and CEO Victor Dodig described the current economic environment as “fluid” and described the company’s performance as “solid” during the first quarter of the year.
