CIBC reported a decline in second-quarter profit on Thursday, as the Canadian lender set aside higher provisions to prepare for soured loans due to a challenging economy. Net income, excluding one-off items, came in at C$1.63 billion, or C$1.70 a share, for the three months ended April 30, compared with C$1.65 billion, or $1.77 a share, a year earlier.
CIBC set aside C$438 million ($328 million) for bad loan provisions in the second quarter, up C$135 million from a year ago. This follows the results of peers Bank of Montreal and Bank of Nova Scotia on Wednesday that missed expectations, weighed down by higher provisions, slower top-line growth and higher expenses.
The bank is taking proactive steps to ensure it is prepared for the economic challenges ahead. CIBC is focused on providing customers with the support they need, while also managing its risk profile and protecting its balance sheet.