TORONTO — CIBC saw its second-quarter profit fall by nearly $1 billion compared with a year ago as its provisions for credit losses soared due to the pandemic and the plunge in oil prices.
The bank says it earned $392 million or 83 cents per share for the quarter ended April 30, down from a profit of $1.35 billion or $2.95 per share in the same quarter last year.
The drop came as CIBC’s provision for credit losses totalled $1.41 billion for the quarter, up from $255 million a year ago.
On an adjusted basis, CIBC says it earned 94 cents per share for the quarter, down from an adjusted profit of $2.97 per share in its second quarter last year.
Analysts on average had expected an adjusted profit of $1.58 per share, according to financial markets data firm Refinitiv.
CIBC chief executive Victor Dodig said the bank’s capital position remains strong, giving it flexibility and resilience to navigate the current environment.
“This will enable us to further diversify revenue streams, deepen client relationships and improve our efficiency as we continue to deliver value to our shareholders,” he said in a statement.
This report by The Canadian Press was first published May 28, 2020.
