CIBC misses expectations as bad loan provisions triple
Canadian Imperial Bank of Commerce reported lower profit for the third quarter of 2023, dragged down by a significant jump in provisions for credit losses.
CIBC reported a net income of $1.47 billion in the quarter ended July 31, down 15 per cent from the same quarter in the year prior.
The bank’s total provision for credit losses increased to $736 million, up 203 per cent from $243 million in 2022 and up 68 per cent from the previous quarter. This loan loss exceeded analyst expectations of $444 million by around 70 per cent.
On an adjusted basis, CIBC says it earned $1.52 per diluted share in its most recent quarter, down from an adjusted profit of $1.85 per diluted share a year earlier.
Analysts on average had expected an adjusted profit of $1.68 per share, according to estimates compiled by financial markets data firm Refinitiv.
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