Canadian Imperial Bank of Commerce Net Profit Rose on Higher Revenue

By Ian Walker and Adriano Marchese

Canadian Imperial Bank of Commerce has reported a 25% rise in fourth-quarter net profit, and said it has entered the new fiscal year with a robust balance sheet and strong credit quality.

For three months ended Oct. 31, the Canadian financial institution posted net income of 1.48 billion Canadian dollars ($1.09 billion), or C$1.53 a share, up from C$1.185 billion, or C$1.26 a share for the comparable quarter a year ago.

On an adjusted basis, stripping out one-off costs and exceptions, earnings were C$1.57 a share compared with $1.39. According to FactSet, analysts were expecting a rise to C$1.53 a share.

Revenue rose to C$5.84 billion from C$5.39 billion. Analysts were expecting a rise to C$5.95 billion.

Common equity tier 1 ratio, a measure of a bank's capital against its assets, stood at 12.4% compared with 11.7% while its return on shareholders' equity rose to 11.8% from 10.1%

The provision for credit losses was in the fourth quarter rose to C$541 million from C$436 million last year at this time.

"In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses," President and Chief Executive Victor Dodig said.

Write to Ian Walker at [e-mail] and Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

11-30-23 0558ET