CIBC Gains on 4th Quarter Earnings

CIBC fourth quarter earnings per share came in at C$2.22 per share, increasing 8.8% year over year.

CIBC (Canadian Imperial Bank of Commerce, TSE:CM, market cap 36.05B, P/E 10.97, Div/yield 0.96/4.26, EPS 8.21, Shares outstanding 400.00M,) saw its bottom line contract 1.9% in the quarter to 31 October as a result of a one-time charge related to the reorganization of its Caribbean banking operations and costs associated with the introduction of its new credit card.

CIBC fourth quarter earnings

CIBC fourth quarter earnings per share came in at C$2.22 per share, increasing 8.8% year over year.

The country’s fifth-largest lender ended the quarter with net profit of C$836 million, equal to C$2.05 a share, after recording a net result of C$852 million, or C$2.02 a share, in the same period the previous year. The bank reported adjusted earnings of C$2.22 per share against C$2.04 last year, exceeding the forecast of C$2.15 made by 14 analysts in a Bloomberg poll.

Toronto-based CIBC wrapped up the financial year with C$3.4 billion in net income, an increase of 3% over last year’s C$3.3 billion.

These results reflected top-line growth, lower provision for credit losses and increasing loans and deposits. However, higher non-interest expenses and a decline in non-interest income were the headwinds for the quarter.

Total provision for credit losses were C$271 million ($261.2 million), declining 17.4% from the prior-year quarter. Loan loss ratio stood at 0.41% compared with 0.53% in the prior-year quarter. The company expects to maintain a loan loss ratio below 60 bps in the upcoming quarters.

Canadian Imperial Bank of Commerce declared a quarterly cash dividend of C$0.96 per share for the quarter ending Jan 31, 2014. The dividend will be paid on Jan 28, 2014 to shareholders of record as of Dec 27, 2013.

CIBC continues to sell at a discount to its peers, despite its industry leading profitability and strong capital base.

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