CIBC tops expectations even as profit gets weighed down by higher credit loss provisions

Net income fell 4% to $1.67 billion, but earnings still beat analyst expectations

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Canadian Imperial Bank of Canada’s net income slipped four per cent year over year to $1.67 billion in the third quarter, joining other banks reporting sliding profits caused largely by larger provisions for credit losses.

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On an adjusted basis, the bank’s earnings were $1.85 per share in the three months ending July 31. Analysts on average were expecting $1.82 per share.

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“In the third quarter, we continued to deliver strong growth across our business through the execution of our client-focused strategy, leveraging the strategic investments we’re making in our bank to attract new clients and deepen existing relationships,” CIBC chief executive Victor Dodig said in a press release accompanying the results.

“As the economic environment continues to evolve, we remain focused on delivering shareholder value by taking a disciplined approach to capital allocation to execute our strategy, focusing on key client segments, further enhancing client experience, and investing in future differentiators for our bank.”