The Canadian Commercial and Wealth Management arm of CIBC reported net income of $320m for Q3 2020, a 7% drop year-on-year. This amounts to $24m.
The drop was primarily attributed to a higher provision for credit losses.
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Furthermore, deposit and loan volume growth in commercial banking was offset by lower margins and lower fee revenue in both commercial banking and wealth management.
In addition, the US Commercial Banking and Wealth Management side recorded net income of $62m, which is a startling 64% drop year-on-year.
Excluding items of note, adjusted net income was $77m, down $106m or 58% from the third quarter a year ago, due to a higher provision for credit losses.
CIBC Q3 2020 performance
Reported net income for CIBC as a whole was $1,172m in Q3 2020, a 16% drop year-on-year and a 199% plummet from the last quarter.
Total revenue was $4,708m in Q3 2020, slightly down from the $4,724m at the same time last year.
Results were altered by two huge items of note:
- A $70m increase in legal provisions, and
- $26m amortisation of acquisition-related assets.
“We delivered solid financial results in the third quarter as our team maintained a tireless focus on our clients, helping make their ambitions a reality during a period of disruption for many,” said Victor G. Dodig, CIBC President and Chief Executive Officer.
“The continued execution of our strategy and ongoing investments in our business, as well as disciplined expense management, have contributed to our resilience and positioned us well for the evolving macroeconomic environment. Our entire team is engaged and committed to supporting our clients and communities.”
This is a 7% rise from the previous year’s figure of C$313m. The growth was said to be driven by higher revenue.
The performance was offset by a 9% rise in non-interest expenses.
The unit’s total revenue of C$1.05bn in Q1 2020 was 7% higher than a year earlier.
