Canadian Imperial Bank of Commerce reported a stronger profit in its latest quarter as lowering its provision for credit losses helped its bottom line.
Toronto-based CIBC said Thursday its net income rose 12% from a year ago to C$1.05 billion ($780.8 million), or C$2.59 a share. Excluding items, CIBC earned C$2.64 a share, compared with C$2.40 a share a year ago.
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In its second quarter, CIBC's revenue rose 1.8% to C$3.7 billion ($2.75 billion).
Analysts polled by Thomson Reuters were expecting C$2.57 in adjusted earnings per share on C$3.82 billion in revenue.
Improved performance in the oil-and-gas sector helped CIBC lower its provision for credit losses to C$179 million in its latest quarter, down 16% from the prior quarter and 45% from a year ago.
Net interest income rose 2.8% to C$2.1 billion, and fee-based income increased 0.6% to C$1.6 billion.
In the latest period, earnings from retail and business banking fell 1% as the bank continued transforming branches with customers spending more time executing bank transactions digitally. Wealth-management profit was up 36% on rising revenue from growth in assets under administration. Capital-markets earnings rose 16% on higher investment portfolio gains.
The $44 billion-asset bank's takeover of Chicago-based PrivateBancorp is expected to close in June. Earlier this month, PrivateBancorp shareholders approved CIBC's $4.9 billion cash-and-stock purchase offer, ending a nearly yearlong saga. The bank recorded a C$20 million charge in the quarter related to transaction and integration costs.
Write to Bowdeya Tweh at Bowdeya.Tweh@wsj.com
(END) Dow Jones Newswires
May 25, 2017 09:33 ET (13:33 GMT)