Canadian Imperial Bank of Commerce (CM), commonly referred to as CIBC, reported its fiscal fourth-quarter profit declined 17% to $1.19 billion compared with $1.44 billion a year earlier.
The Toronto lender blamed the decline in profits on higher provisions set aside for bad loans and credit losses.
However, despite the lower profits, CIBC followed Canada’s other big banks and raised its quarterly dividend payment a slight 2% to $0.85 per share.
CIBC said it earned $1.26 per share for the quarter ended October 31, down from $1.54 a share in the same quarter of 2021. Revenue totalled $5.39 billion compared with $5.06 billion a year earlier.
The bank said the amount of money it set aside to cover bad loans and credit losses totalled $436 million in fiscal Q4, up from $78 million in the same quarter of 2021.
Analysts had forecast that CIBC would earn $1.72 per share in its latest quarter, according to Refinitiv data.
CIBC’s stock is down 13% this year at $64.79 per share