Canadian big six bank reported earnings before the bell Thursday
Another of Canada’s big six banks has reported its quarterly results, as CIBC released its stats ahead of the bell early Thursday.
The bank’s second quarter figures followed the analyst-beating report from Scotiabank earlier this week, and TD’s results from last week, and revealed net income of $649 million for the second quarter, up $11 million or 2% from the second quarter a year ago.
Adjusted pre-provision, pre-tax earnings were $1.16 billion, up $149 million from the second quarter of 2023 as higher revenue was partially offset by higher adjusted non-interest expenses mainly due to higher spending on strategic initiatives, and higher employee-related and performance-based compensation.
CIBC’s board of directors has declared a dividend of $0.90 per share on common shares for the quarter ending July 31, 2024, payable on July 29, 2024 to shareholders of record at the close of business on June 28, 2024.
For CIBC’s Canadian commercial banking and wealth management operations, there was net income of $456 million for the second quarter, up $4 million or 1% from the second quarter a year ago. Lower credit loss provisions and higher revenue was partially offset by higher costs. The revenue gains were driven by market appreciation and higher client activity in wealth management.
Positive conditions also boosted revenue for the bank’s US commercial banking and wealth management operations with reported net income of $456 million for the second quarter, up $4 million or 1% from the second quarter a year ago.
Provision for credit losses was $514 million, up $76 million from the same quarter last year.
"In the second quarter, the steady execution of our client-focused strategy across our well-diversified North American platform continued to deliver solid results and create value for our stakeholders," said Victor G. Dodig, CIBC President and Chief Executive Officer. "Our team's ability to attract and deepen client relationships across our bank, including in high growth segments and markets is supporting our momentum. Combined with expense discipline, our robust capital position and disciplined risk management, as well as our ongoing strategic investments, we remain well positioned to navigate the current operating environment and position our bank for the future."
