CIBC fourth-quarter profit beats expectations, dividend up
TORONTO (Reuters) - Canadian Imperial Bank of Commerce (CM.TO: Quote), Canada's fifth biggest lender, posted a fourth-quarter profit that beat market expectations on Thursday, helped by growth in its retail banking and capital markets segments, and raised its quarterly dividend.
CIBC's retail banking earnings rose 8.8 percent and profit at its capital markets division jumped 54 percent.
While the Canadian banks have been able to largely dodge any impact from a weak Canadian economy and an oil price collapse, investors remain concerned.
Gross impaired loans in the oil and gas sector grew more than threefold to C$125 million in the quarter, from C$34 million in the third quarter. CIBC did not record any energy-sector bad loans in the same period last year.
The lender also set aside about C$38 million as an allowance for credit losses in the oil and gas sector, compared with C$11 million in the third quarter and none a year earlier.
Net income for the quarter ended Oct. 31 was C$778 million, or C$1.93 per share, compared with C$811 million, or C$1.98 per share, in the fourth quarter of 2014. Excluding special items, earnings rose to C$2.36 per share.
Analysts on average had expected earnings of C$2.34 a share, according to Thomson Reuters I/B/E/S.
(Reporting by John Tilak, editing by David Evans and Chizu Nomiyama)
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