CIBC net income, revenues rise

TORONTO — CIBC (TSX:CM) reported Thursday that profits were up 48 per cent in the fourth quarter, but its chief executive has warned that higher loan losses are likely to continue into the new year as the Canadian jobs market remains weak.

TORONTO — CIBC (TSX:CM) reported Thursday that profits were up 48 per cent in the fourth quarter, but its chief executive has warned that higher loan losses are likely to continue into the new year as the Canadian jobs market remains weak.

The Toronto-based bank reported net income of $644 million or $1.56 per share for the quarter ended October 31, despite coming at the tail end of a recession. That was up from year-ago profit of $436 million or $1.06 per share.

Provisions for its loan losses, or bad loans, were $424 million which as more than double the $222 million booked a year earlier. The increase was caused by higher losses from its credit cards, as well as its unsecured personal lending and corporate lending portfolios.

“We do expect our loan losses to remain elevated as long as higher unemployment levels prevail,” president and CEO Gerry McCaughey told analysts in a conference call.

Canada’s unemployment rate sits at 8.6 per cent, after 43,000 more jobs were shed in October, which has left economists predicting that the sluggish economic recovery will be slowed further as people scour the sparse jobs market.

CIBC executives noted they predict losses from credit cards will remain relatively stable in the new year, which is good news for the bank since it has the largest portfolio of credit cards compared to its peers.

Revenues totalled $2.9 billion for the quarter, compared to $2.2 billion last year. The figures were in line with analysts expectations for revenue, according to estimates compiled by Thomson Reuters.

Just Posted

Boy escapes serious injury after falling from third-storey window

SURREY, B.C. — A little boy is very lucky to have escaped… Continue reading

‘Crying out for help:’ Calgary radicalization program evolves to help others

CALGARY — The soft-spoken young man wasn’t being recruited by neo-Nazis or… Continue reading

Victoria pledges to plant 5,000 trees as part of United Nations challenge

Victoria is promising to plant 5,000 trees on public and private land… Continue reading

Man injured when NWT wildlife officers shoots gun during aggressive bear incident

FORT SIMPSON, N.W.T. — RCMP in the Northwest Territories say a man… Continue reading

Gasoline Alley Harley Davidson hosts 7th annual Toy Run

Bikers jumped on their motorcycles this weekend to help make Christmas better… Continue reading

Your community calendar

Tuesday Bower Place Community Association Seniors Card and Coffee party at 1:30… Continue reading

Charity boat with 182 migrants waits to dock in Europe

A non-profit-run ship carrying 182 migrants rescued on the Mediterranean Sea sailed… Continue reading

Singh-Trudeau meeting will be private, say Liberals, but no time set yet

OTTAWA — The Liberal Party pledged Saturday to keep private the details… Continue reading

Glen Assoun calls for reform in how Ottawa considers cases of wrongful conviction

HALIFAX — Tethered to an ankle monitor and alone in a British… Continue reading

No winning ticket for Saturday nights $9 million Lotto 649 jackpot

TORONTO — There was no winning ticket for the $9 million jackpot… Continue reading

Trudeau, Scheer hit the road again for second full week of federal campaign

OTTAWA — After a day off the campaign trail Saturday, Justin Trudeau… Continue reading

Missing hiker found safe after spending night on North Vancouver mountain

VANCOUVER — Rescue crews have found a missing female hiker safe after… Continue reading

Trudeau was only one in dark makeup at 2001 party but nobody took offence: attendee

VANCOUVER — A man who attended an “Arabian Nights” gala held by… Continue reading

Most Read