- Canadian Imperial Bank of Commerce ( NYSE: CM ), known as CIBC, intends to appeal a New York court decision that found the Toronto-based bank liable for US$491M (C$665M) in damages, plus prejudgment interest, in a lawsuit filed by a Cerberus Capital Management-controlled special purpose vehicle.
- The bank expects the total amount of damages, including prejudgment interest, of US$848M through to Dec. 1, 2022.
- CIBC ( CM ) expects to record a pretax provision of ~C$1.16B, or C$850M after tax, including estimated prejudgment interest through Dec. 1, 2022, in its Q1 FY2023 results. The after-tax charge is expected to reduce its CET1 capital ratio by ~30 basis points. Its CET1 capital ratio was 11.7% at Oct. 31, 2022.
- In December, BMO Capital Markets downgraded CIBC ( CM ) to Sector Perform, citing decelerating loan growth and pressure on net interest margins.
For further details see:
CIBC to appeal court ruling for $491M of damages in Cerberus SPV suit