CIBC reports strong third quarter, expects mortgage moderation

CIBC is the second of Canada's big banks to announce third quarter earnings with an increase year-over-year but a dip from the second quarter due to costs relating to its acquisition of PrivateBank.
The lender revealed adjusted net income of $1.16 billion compared with $1.07 billion a year earlier; and adjusted earnings of $2.77 compared with $2.67 a year ago.


However, reported diluted earnings per share were down to $2.60 from $3.61 in the second quarter as the bank faced increased costs from its acquisition of The PrivateBank, which is expected to deliver strong profits to the group.


CIBC’s Canadian retail and business banking unit saw net income rise 8% ($53 million) year-over-year to $719 million.


Provision for losses was increased by 3% ($6 million) to $209 million mainly due to losses in its pre-existing U.S. real estate finance portfolio. 


While the bank is not expecting any significant issues resulting from its mortgage book, CEO Victor Dodig told analysts that a moderation of loans would be expected as interest rates rise along with tighter regulation such as the OSFI proposals announced last month.
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?