CIBC profit plunges on higher provisions as COVID-19 loan losses loom

Canadian Imperial Bank of Commerce (CIBC) reported a 70% slump in quarterly profit on Thursday, as it set aside more money to cover potential loan-losses from the coronavirus pandemic.

Net income attributable to equity holders fell to C$400 million, or 83 Canadian cents per share, in the second quarter ended April 30, from C$1.34 billion, or C$2.95 per share, a year earlier.

CIBC set aside C$1.41 billion in the quarter for future loan losses, compared with C$255 million a year earlier, with higher provisions for credit losses on both performing and impaired loans as a result of the COVID-19 pandemic and continued pressure on oil prices.

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