2023-08-31 09:09:33 ET
Canadian Imperial Bank of Commerce ( NYSE: CM ), or CIBC for short, said fiscal Q3 earnings declined from the previous quarter and a year ago as its provision for credit losses increased. Profits were also hurt by a tax charge and acquisition-related amortization. Results at its Canadian Personal and Business Banking unit also weakened.
CIBC ( CM ) stock fell 1.6% in Thursday premarket trading.
Meanwhile, results from its Canadian and U.S. Commercial Banking & Wealth Management units improved from fiscal Q2, but remained weaker than the year-ago results. Capital Markets results rebounded from a year-ago loss.
For the quarter ended July 31, 2023, the bank's adjusted EPS of C$1.52 (US$) dropped from C$1.70 in the previous quarter and C$1.85 in the year-ago period. CIBC ( CM ) said Q3 2023 results were affected by C$25M after-tax commodity tax charge related to the retroactive impact of the 2023 Canadian Federal Budget and C$18M after-tax amortization of acquisition-related intangible assets. It's unclear if the adjusted number of C$1.52 compares with the C$1.68 consensus estimate.
Revenue of C$5.85B (US), topping the C$5.81B consensus, rose 3% Q/Q and 5% Y/Y, driven by net interest income growth and a 10% Y/Y increase in trading revenue.
Net interest income of C$3.24B vs. C$3.19B in the prior quarter and C$3.24B in the year-ago period.
Provision for credit losses increased to C$736M from C$438M in Q2 and $243M in Q3 2022.
Adjusted preprovision, pretax earnings were C$2.60B increased 5% for both Q/Q and Y/Y.
Expenses rose to C$3.31B from C$3.14B in the previous quarter and C$3.18B a year ago.
Q3 adjusted return on equity was 11.9% vs. 13.9% in the prior quarter and 15.1% in the year-ago quarter.
Net income by segment vs. prior quarter and year-ago period:
- Canadian Personal and Business Banking: C$497M vs. C$637M and C$595M.
- Canadian Commercial Banking and Wealth Management: C$467M vs. C$452M vs. C$484M.
- U.S. Commercial Banking and Wealth Management: C$73M vs. C$55M vs. C$193M.
- Capital Markets: C$494M vs. C$497M vs. -C$53M.
Earlier, Canadian Imperial Bank ( CM ) non-GAAP EPS of C$1.52, revenue of C$5.85B
For further details see:
CIBC Q3 earnings hit by credit loss provision, tax charge, amortization