CIBC reports first-quarter profit down from year ago

CIBC reports first-quarter profit down from year ago


FILE – A photograph of the CIBC sign in Toronto’s financial district in downtown Toronto on Thursday, Feb. 26, 2009. (THE CANADIAN PRESS/Nathan Denette)

The Canadian Press
Published Friday, February 24, 2023 7:11AM EST

CIBC reported its first-quarter profit fell compared with a year ago as it took a $1.17-billion charge to settle lawsuit filed by Cerberus Capital Management LP.

The bank reached a deal last week to settle the lawsuit filed by the private equity firm in 2015.

CIBC, the first of Canada’s big banks to report first-quarter results this year, says its net income amounted to $432 million or 39 cents per diluted share for the quarter ended Jan. 31 compared with $1.87 billion or $2.01 per diluted share a year earlier.

Revenue totalled $5.93 billion, up from $5.50 billion in the same quarter last year, while provisions for credit losses were $295 million for the quarter, up from $75 million a year earlier.

On an adjusted basis, CIBC says it earned $1.94 per diluted share for its latest quarter, down from an adjusted profit of $2.04 per diluted share a year earlier.

Analysts on average had expected a profit of $1.70 per share and $5.67 billion in revenue, according to estimates compiled by financial markets data firm Refinitiv.

This report by The Canadian Press was first published Feb. 24, 2023.

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Source: CP24