CIBC reported its first-quarter profit fell compared with a year ago as it took a $1.17-billion charge to settle a lawsuit filed by Cerberus Capital Management LP.
The bank reached a deal last week to settle the lawsuit filed by the private equity firm in 2015.
CIBC, the first of Canada’s big banks to report first-quarter results this year, said Friday its net income amounted to $432 million or 39 cents per diluted share for the quarter ended Jan. 31 compared with $1.87 billion or $2.01 per diluted share a year earlier.
Revenue totalled $5.93 billion, up from $5.50 billion in the same quarter last year, while provisions for credit losses were $295 million for the quarter, up from $75 million a year earlier.
On an adjusted basis, CIBC says it earned $1.94 per diluted share for its latest quarter, down from an adjusted profit of $2.04 per diluted share a year earlier.
Analysts on average had expected a profit of $1.70 per share and $5.67 billion in revenue, according to estimates compiled by financial markets data firm Refinitiv.
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“In the first quarter, we delivered solid financial results as we continued to make steady progress in executing our client-focused strategy,” CIBC CEO Victor Dodig said in a statement.
“We have clear momentum in attracting and deepening client relationships, a resilient capital position, and strong risk management and credit quality, and we’ll draw on these strengths throughout fiscal 2023 to create further value for our stakeholders.”
CIBC said its Canadian personal and business banking business earned $589 million in its latest quarter, down from $687 million a year earlier, while its Canadian commercial banking and wealth management business earned $469 million, up from $462 million a year earlier.
CIBC’s U.S. commercial banking and wealth management operations earned $201 million, down from $226 million. The bank’s capital markets business earned $612 million, up from $543 million last year.
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