Canada’s fifth-largest bank by assets, CIBC, has kicked off the Canadian bank reporting season with first quarter earnings ahead of analyst forecasts, but down slightly on the year-ago quarter.
CIBC’s reported net income for the three months to end January of C$1.33bn, down 5.6% from the year ago period.
CIBC’s retail focused Canadian Personal and Small Business Banking unit contributed net income of C$656m for the first quarter, down 19% from the first quarter a year ago.
Adjusted for one-off items, underlying profits at the unit rose by 17% to C$658m.
“In the quarter, CIBC delivered strong results across all four strategic business units,” says Victor Dodig, CIBC President and Chief Executive Officer. “We are creating value for shareholders by building a relationship-focused bank, diversifying our earnings growth in the US region, improving operational efficiencies and maintaining disciplined capital deployment.”
CIBC first quarter highlights included a drop in the bank’s cost income ratio, down by 120 basis points year-on-year to 55.1%.