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