Company News

BUZZ-Canada's CIBC falls after profit misses due to slowing loan growth

(Adds intraday milestone, analyst comment, loan losses; Updates share movement)

** Shares of Canadian Imperial Bank of Commerce fall as much as 3.7% to C$107.9 after profit miss

** Worst day for stock since June 24, 2016 as Canada’s fifth-largest lender hit by weak loan growth, higher loan loss provisions

** “The decline in domestic retail lending will likely raise additional questions as to where domestic growth will come from...,” said John Aiken, an analyst with Barclays

** Home loans dip on rules that require borrowers’ uninsured mortgages to be stress-tested to check their ability to repay

** Total provisions for loan losses rose 20.3%, while total non-interest expenses jumped 2.82% to C$2.59 bln

** Reported adj. EPS of C$2.97 per share, below estimate of C$2.99

** Expects year-over-year growth in earnings per share for 2019 to be flat and expenses to rise, but sees net interest margin expansion

** 7 of 15 brokerages rate the stock “buy” or higher, 6 “hold” and 2 “sell” or lower; their median PT is $124

** Including session losses, stock down 26% YTD (Reporting by Bharath Manjesh in Bengaluru)