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CIBC reports $1.4B fourth-quarter profit, raises quarterly dividend

CIBC reports $1.4B profit

CIBC raised its dividend Thursday as it reported a fourth-quarter profit of $1.4 billion, up from a profit of $1 billion in the same quarter last year.

The Toronto-based bank said it will now pay a quarterly dividend of $1.61 per share, up from $1.46. CIBC also says it plans to buy back up to 10 million of its shares.

The increased payment to shareholders and share buyback follow moves by several other large Canadian banks this week after the federal banking regulator lifted restrictions last month on dividend increases, share buybacks and increases in executive compensation that were put in place at the start of the pandemic.

CIBC said its profit amounted to $3.07 per diluted share for the quarter ended Oct. 31, up from a profit of $2.20 per diluted share a year ago. Revenue totalled nearly $5.1 billion, up from $4.6 billion in the same quarter last year.

"We delivered strong financial performance in 2021 with growth across all of our strategic business units as our entire team focused on helping our clients achieve their ambitions," CIBC chief executive Victor Dodig said in a statement.

On an adjusted basis, CIBC says it earned $3.37 per diluted share, up from an adjusted profit of $2.79 per diluted share in the same quarter last year.

Analysts on average had expected the bank to report an adjusted profit of $3.53 per share, according to financial markets data firm Refinitiv.

The results came as CIBC reported provisions for credit losses of $78 million for the quarter compared with $291 million in the same quarter last year.

CIBC said its Canadian personal and business banking business earned $597 million, up from $590 million a year ago, while Canadian commercial banking and wealth management earned $442 million, up from $340 million in the same quarter last year.

In the U.S., CIBC says commercial banking and wealth management earned $256 million, up from $135 million a year ago.

CIBC's capital markets business earned $378 million, up from $310 million in the same quarter last year.

For its full year, CIBC says it earned $6.4 billion or $13.93 per diluted share, up from a profit of $3.8 billion or $8.22 per diluted share a year earlier. Revenue totalled $20.0 billion, up from $18.7 billion.



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