May 15, 2014 / 9:09 PM / in 3 years

CIBC to take C$420 million second quarter writedown on Caribbean unit

TORONTO (Reuters) - Canadian Imperial Bank of Commerce (CM.TO) said on Thursday it will take a non-cash goodwill impairment charge of C$420 million ($386.10 million) on its Caribbean unit due to challenging economic conditions in the region.

The bank, Canada’s fifth-largest, said the charge will be included in its results for the fiscal second quarter ended April 30, which it will report on May 29.

CIBC also said it will record C$123 million in incremental loan losses for the unit, CIBC FirstCaribbean, “reflecting revised expectations on the extent and timing of the anticipated economic recovery in the Caribbean region.”

Before the writedown was announced, analysts had expected the bank to post net income of C$818 million for the quarter, according to Thomson Reuters I/B/E/S.

CIBC’s shares ended the session up 10 Canadian cents at C$97.29. The results were released after markets closed.

Reporting by Cameron French; Editing by Bernard Orr

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