May 26, 2011 / 10:07 AM / 7 years ago

UPDATE 2-CIBC profit lifted by increased lending

* Q2 EPS C$1.60 Vs C$1.59 a yr ago

* Q2 cash earnings excluding one-time items C$1.75/shr (Adds details on results, CEO comment, analysts’ estimate)

TORONTO, May 26 (Reuters) - CIBC’s (CM.TO) quarterly profit rose 3 percent on the back of increased lending and lower provisions for loan losses, the bank said on Thursday.

Net income in the second quarter ended April 30 rose to C$678 million, or C$1.60 a share, from C$660 million, or C$1.59 a share, a year earlier.

The Toronto-based company said its adjusted cash earnings, which exclude a loss from its structured credit run-off unit, were C$1.75 a share.

Analysts on average had forecast earnings of C$1.80 a share, according to Thomson Reuters I/B/E/S.

The bank said its provisions for bad loans fell to C$194 million from C$316 million a year earlier.

“CIBC delivered solid results this quarter across our core businesses in retail markets and wholesale banking,” Chief Executive Officer Gerry McCaughey said in a statement.

Bank of Montreal (BMO.TO), kicked off the earnings-reporting season for Canadian banks on Wednesday. Its quarterly profit topped investors’ expectations, driven largely by growth in its Canadian lending portfolio and a drop in provisions for soured loans. [ID:nN24268837]

CIBC rivals Toronto-Dominion (TD.TO) and National Bank of Canada (NA.TO) are also reporting results later on Thursday.

Royal Bank of Canada (RY.TO), the largest of Canada’s big six, reports on Friday, while Bank of Nova Scotia (BNS.TO) the last to report, comes next Tuesday. [ID:nN2043497] (Reporting by Euan Rocha; Editing by Lisa Von Ahn)

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