Despite lower Q4 profits, the bank "delivered resilient financial performance" across 2020
The Canadian Imperial Bank of Commerce exceeded analysts’ predictions despite lower profits for its fiscal fourth quarter, which fell by 15% year-over-year to settle at $1 billion, or $2.20 per share.
To compare, the bank’s Q4 2019 profits were $1.2 billion, or $2.58 per share.
“We delivered resilient financial performance in fiscal 2020 against the backdrop of a global pandemic and an evolving geopolitical environment,” said Victor G. Dodig, president and CEO of CIBC.
The bank was boosted by higher profits from its wealth management and personal/business banking arms, but significant drag came from CIBC’s U.S. business, which saw profits drop by 27% annually.
For the year ending October 31, CIBC reported net income of $3.8 billion and adjusted net income of $4.4 billion, compared with reported net income of $5.1 billion and adjusted net income of $5.4 billion for 2019.
CIBC saw its provisions for credit losses fall by 28% annually and 45% quarterly to $291 million.
Dodig expressed confidence at the bank’s prospects next year.
“We took steps to position our bank for the future, including making strategic investments in our people, processes and platforms, and taking steps to enhance our efficiency,” he said. “As we enter fiscal 2021, our strong financial position will enable us to continue executing our client-focused strategy to deliver growth and generate value for all our stakeholders.”
