Canadian Bank Blames Caribbean Performance For Lower Second Quarter Figures

TORONTO, Canada CMC – The Canadian Imperial Bank of Commerce (CIBC) is boosting its shareholder dividend, while reporting a lower second-quarter net income of CAN$306 million (One Canada dollar = US$0.92 cents), saying the results were impacted by its Caribbean banking subsidiary.

CIBC said that it earned CAN$0.73 cents per share diluted in the quarter, compared with CAN$2.09 per share on CAN$862 million in net income in the same quarter last year.

The bank announced earlier this month that it was taking a CAN$420-million, non-cash goodwill impairment charge in the quarter related to CIBC First Caribbean, which it said has been impacted by a prolonged recession in the region.

CIBC also recorded CAN$123 million of after-tax of loan losses related to the Caribbean bank.

But despite these figures, CIBC is the sixth bank to beat analysts’ expectations on adjusted earnings per share in the quarter.