CIBC reported its fourth-quarter profit fell to $1.19 billion compared with $1.44 billion in the same quarter last year as its provisions for credit losses climbed higher due to a deterioration in its economic outlook.
The bank also raised its quarterly dividend to shareholders by two cents to 85 cents per share.
The increased payment to shareholders came as CIBC said Thursday it earned $1.26 per diluted share for the quarter ended Oct. 31, down from $1.54 per diluted share in the same quarter last year. Revenue totalled $5.39 billion for the quarter compared with $5.06 billion a year ago.
Provisions for credit losses for the three-month period totalled $436 million, up from $78 million in the same quarter last year.
“Our bank is well-diversified and resilient, and our proven ability to navigate in an uncertain operating environment will enable us to continue to deliver value to our stakeholders and contribute meaningfully to a more sustainable future,” CIBC chief executive Victor Dodig said in statement.
On an adjusted basis, CIBC said it earned $1.39 per diluted share in its fourth quarter, down from an adjusted profit of $1.68 per diluted share a year ago.
Analysts on average had expected to the bank to earn $1.72 per diluted share, according to estimates compiled by financial markets data firm Refinitiv.
The bank said its Canadian personal and business banking group earned $471 million in its latest quarter, down from $597 million in the same quarter last year, while its Canadian commercial banking and wealth management division earned $469 million, up from $442 million a year ago.
CIBC’s U.S. commercial banking and wealth management division earned $161 million in its fourth quarter, down from $256 million a year ago, while its capital markets group earned $378 million, the same as the a year earlier.
The bank’s corporate and other category reported a loss of $294 million in the quarter compared with a loss of $233 million in the same quarter last year.
For its full year, CIBC reported a profit of $6.24 billion or $6.68 per diluted share on $21.83 billion in revenue compared with a profit of $6.45 billion of $6.96 per diluted share on $20.02 billion in revenue a year earlier.